Forum

• # 122697
• Sat 20 Jan 2024 10:00 AM

I have a client who left her paid employment in 2022-23 to set herself up as self employed.

As you would expect she traded at a loss for her first period of self-assessment.  On completing her SA return the calculation showed an overpayment of Tax and that a refund is due.  The return also showed that the full amount of self-employed loss that can be carried forward was her full loss.

I thought that the loss would be adjusted to take into account the refund of overpaid tax.  Am I overthingink this please?  Should it be offset or should the full Self-Employed loss be carried forward nomatter what?

I have looked at the HS227 worksheet but it does not help.

Thanks

Steve

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• # 122707
• Fri 02 Feb 2024 02:00 PM

Steve Wilson said:

“

I have a client who left her paid employment in 2022-23 to set herself up as self employed.

 

As you would expect she traded at a loss for her first period of self-assessment.  On completing her SA return the calculation showed an overpayment of Tax and that a refund is due.  The return also showed that the full amount of self-employed loss that can be carried forward was her full loss.

 

I thought that the loss would be adjusted to take into account the refund of overpaid tax.  Am I overthingink this please?  Should it be offset or should the full Self-Employed loss be carried forward nomatter what?

 

I have looked at the HS227 worksheet but it does not help.

 

Thanks

Steve

”

Hi Steve,

So, your client earn't nothing from her Self Employment, as she made a loss.  Therefore her only income was from her paid employment.  As a result she overpaid tax, which is now correctly due to be refunded.

The loss on the separate self employed income can therefore be carried forward to 2023/24 tax year.

I hope this helps.

Regards

Adam

FICB PM.Dip

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