Tax losses

Tax losses

Once upon a time we met a new client. They had set up their new business and they had been advised by HMRC that because they had a loss they would pay no tax and they would be able to get tax relief for their first year of losses some time in the future. Luckily, they came to us in time. We made some changes and got them a tax repayment. When you have just started up you need all the money you can get. So the repayment was far more useful and is more money than the tax that would have been saved in the (uncertain) future.

Did you know that if you make a loss there are choices as to how you make use of these?

Sometimes you may wish to use the losses against profits/income from other sources in the same year.

Sometimes you will want to keep the losses to use in the future.

Sometimes you can take them backwards over several years.

Losses - don’t just write them off - they can save you money. Sometimes they will get you a tax repayment.

Call us to discuss.