Loss Relief

[Emigre]

I wonder if any accountants are lurking? Maybe someone can enlighten us??

I know Alan from NW often posts on here.

I’ll post another thread asking them to take a look.

Friendly Accountant is right on all counts. One confusion though, it is unlikely that your loss this year will be caused by a high salary (above personal allowance(s)), more likely by other expenses eg travel costs to interviews, marketing costs, overheads (phone, PC, office etc).

So, where MyCo makes a loss (ie revenue less than allowable expenses, which can include salaries) the loss can be offset against profits made in previous years and CT reclaimed.

Lets be straight here. As far as contractors are concerned this apparent gimme relates to those of us that spend most if not all of the year on the bench. (This is why FA talked about high salaries - the only other way of making any meaningful loss in MyCo).

[Billy Pilgrim]

I suppose putting 100K directly into a pension from company accounts is out of the question then??

Puts a great big hole in yearly profits and boosts pension coffers at the same time without incurring any further tax / NI

[Little'Old Me]

I suppose putting 100K directly into a pension from company accounts is out of the question then??

Puts a great big hole in yearly profits and boosts pension coffers at the same time without incurring any further tax / NI

If you'd been putting £100k away for last couple of years, then there should be no problem doing it again. But as a one off, to create a loss - would be pushing it, and unlikely to be allowed as a trading expense...........

[Little'Old Me]

Friendly Accountant is right on all counts. One confusion though, it is unlikely that your loss this year will be caused by a high salary (above personal allowance(s)), more likely by other expenses eg travel costs to interviews, marketing costs, overheads (phone, PC, office etc).

So, where MyCo makes a loss (ie revenue less than allowable expenses, which can include salaries) the loss can be offset against profits made in previous years and CT reclaimed.

Lets be straight here. As far as contractors are concerned this apparent gimme relates to those of us that spend most if not all of the year on the bench. (This is why FA talked about high salaries - the only other way of making any meaningful loss in MyCo).

Companies tend to continue to have expenses (fixed costs) continuously as they are trading, even if they don't have any income, due to lack of orders (or contracts). Thats why they are "trading" companies. Hence the losses.