Self Employed, but now PAYE - Questions
Dembele10
Posts: 7 Forumite
in Cutting tax
Hi All,
I had been self-employed for two years but closed the business down in March this year and sent off the appropriate Partnership Tax Return and paid my final VAT bill.
I have now secured a job working for a company.
Two Questions I have -
- If I fill in the 'starter checklist' and send this to my new company HR will that be enough to ensure I am on the correct tax code from the off?
- My business made a loss in it's first year and I filled in that the tax I was due to pay was -£12,000 at that point (tax year 2016-17). Is there anything I can do to use that tax to offset the tax I'll now be due to pay on my new wage? Last year (tax year 2017-18) I posted another loss, only -£500, but it might be possible to use that also?
Thanks
I had been self-employed for two years but closed the business down in March this year and sent off the appropriate Partnership Tax Return and paid my final VAT bill.
I have now secured a job working for a company.
Two Questions I have -
- If I fill in the 'starter checklist' and send this to my new company HR will that be enough to ensure I am on the correct tax code from the off?
- My business made a loss in it's first year and I filled in that the tax I was due to pay was -£12,000 at that point (tax year 2016-17). Is there anything I can do to use that tax to offset the tax I'll now be due to pay on my new wage? Last year (tax year 2017-18) I posted another loss, only -£500, but it might be possible to use that also?
Thanks
0
Comments
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...
- My business made a loss in it's first year and I filled in that the tax I was due to pay was -£12,000 at that point (tax year 2016-17). Is there anything I can do to use that tax to offset the tax I'll now be due to pay on my new wage? Last year (tax year 2017-18) I posted another loss, only -£500, but it might be possible to use that also?
I believe that losses carried forward can only be used against profits of that same trade.0 -
if your answer is A on the checklist your employer should operate the basic code number.
The help sheet H227 details how terminal losses can be used
https://www.gov.uk/government/publications/losses-hs227-self-assessment-helpsheet/hs227-losses-20180 -
It appears more complicated.
Firstly - one does not set off !!!8216;tax!!!8217; against other tax - it is the business loss that can be used to reduce other income. As sheramber says it could be in the form of a terminal loss against income prior to the commencement of the partnership. However this is not the only option - we also have loss in the early trade of trade or sideways relief for 2016/17 against 2015/16. However:
Secondly - there is no such thing as partnership losses. Each partner has to determine the individual loss as adjusted for tax purposes and claim on an individual basis. Sounds like professional advice, ideally from a tax adviser, required here.
Finally you only have until 31st January next year to make the claim or they are lost forever.0 -
and expect a lot of different tax codes to be sent as various things work their way though the system. i had 7 last year
2023 wins - zilch, nada, big fat duck. quack quack,0
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