confused with self assessment

cycloneuk

I'm a bit confused on how these figures are being worked out on my self assessment, and what figure I need to enter for our tax credits renewal. I have one trade that has a profit of £24,292 for 18/19 and another new one that made a loss of £1,222 for 18/19.

I have entered the 2nd trade on the self assessment and I have entered the loss in the appropriate box. The SA302 still shows a total profit of £24,292 at the top, with the loss showing under Income tax relief £1222.

If I had just combined both trades on the SA then the profit would of been £23,070 and that would of been the figure I entered on the tax credits renewal, but HMRC like them separate. So do I just deduct the Income tax relief from the total profit on the SA302 and enter that?

BoGoF

I assume you are using the SA103S (short)?

You need the SA103F (full) to offset losses.

cycloneuk

BoGoF wrote: »

I assume you are using the SA103S (short)?

You need the SA103F (full) to offset losses.

I'm doing it online, so it tailors the return.

BoGoF

Does any of the questions ask if you want to set losses against income?

cycloneuk

BoGoF wrote: »

Does any of the questions ask if you want to set losses against income?

Yes, one says do I want to offset my losses against other self employed income, ticked yes and entered the amount. I would of expected it to have reduced my total self employed profit but it dosn't.


It does reduce my tax, but not by the same amount it would of if it was 1 business, I think i'm supposed to just take off my losses from my total profit, and enter that figure for tax credits.

Dazed_and_confused

You might be getting confused by three distinct things?

Income tax loss relief (part of your Self Assessment calculation if you are setting the loss against other income in the same tax year)

Class 4 National Insurance loss relief (part of your Self Assessment calculation if you are setting the loss against other income subject to Class 4 NIC in the same tax year)

Tax credit renewal

Can you provide details of your Self Assessment calculation? It may be you have only claimed income tax loss relief?

[Deleted User]

Perhaps I am simplifying matters here but, going back to the original question which talks about the tax credit renewal form, I believe that the op is correct to enter the profit (after loss offset) as he/she has suggested in posts 1 and 5.

On the SA return the profit from the main source of self-employment will not alter on the calculation and the loss on the second trade will be given as a relief.

sheramber

Tax Credits working sheet for losses

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/784108/TC825_04_19.PDF.pdf