Inside IR35 with retained loss

[saxon1]

I'm considering taking a contract that is inside IR35. I have a ltd company that has a retained loss from a previous financial year due to a creditor funding some legitimate R&D I did. Is it possible to offset the two? i.e. if the contract is 100k and the retained loss is 20k, can the IR35 treatment be on 80k rather than the full 100k and I repay my creditor their 20k?

[northernladuk]

Nope

[jamesbrown]

You’ll need to operate a deemed payment, so there won’t be any untaxed income, but there’s nothing to stop you retaining the taxed income by way of a director’s loan and to repay your creditor from the money you’ve loaned to YourCo. Not the answer you’re looking for though.

[saxon1]

Thanks. Guess I'll have to wait for something outside IR35 and retain the loss for another cycle.