SA for Employee and Director

Rachel

Hello

I just wondered if I could ask for some advice please.

I am completing a Self Assessment for a client who is PAYE, he has also set up a company that isn't yet trading which he has put a lot of money into. I don't think that this is deductible on the SA unless the company ceases but have I missed something?

Many Thanks

Rachel

JodieR

If his 'company' is a Limited Company then no, any losses made will only be able to be relieved against future profits of that company. If he's self employed then losses can be set against his employment income in the same year or the year before. They can also be carried back 4(?) years if it's a new business.

JodieR

Sorry, I didn't read that properly, if he's not yet started trading then I don't think there'll any tax relief yet either way.

Rachel

Thanks for your response, yes it is just the not yet trading bit that I was unsure of but I am pretty certain it isn't but just wanted to check on here incase anyone have any experience to the contrary. It is a Limited company.

Monsoon

Rachel wrote: »

I am completing a Self Assessment for a client who is PAYE, he has also set up a company that isn't yet trading which he has put a lot of money into. I don't think that this is deductible on the SA unless the company ceases but have I missed something?

You're right. I can't think of anything to go on his SA this year.

If down the line the business doesn't work, he may have a capital loss to offset against future capital gains.

Rachel

Thanks both for your replies always nice to know I am thinking correctly