Trading Losses While Inside IR35

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DaveB replied

9 January 2020, 09:12
Originally posted by vwdan View Post

Just a hypothetical pondering - I've got a company that's been profitable for 6 years or so now. Let's say this year I ended up inside IR35. My assumption that all IR35 income gets taxed at PAYE rates with NIC, and therefore paid as salary and MyCo makes zero profit. Or, of course, I end up on PAYE/Umbrella/Whatever

But, of course, my company is still ticking on - I'm incurring accountancy fees, O365 fees, Plan B fees whatever. Can I offset these losses against previous years tax?

Yes.

Work out and claim relief from Corporation Tax trading losses - GOV.UK

It's a check box on your CT600 to indicate that you are carrying back the loss to the previous trading period.

Your accountant, should you have one, will be able to do this for you.
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realaledrinker replied

8 January 2020, 23:30
Originally posted by eek View Post

Not easily but you can offset them against the following year's profits.

The loss may be set against total profits of the current or previous accounting periods or may be carried forward and set against future trading income from the same trade.
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eek replied

8 January 2020, 17:01
Originally posted by vwdan View Post

Just a hypothetical pondering - I've got a company that's been profitable for 6 years or so now. Let's say this year I ended up inside IR35. My assumption that all IR35 income gets taxed at PAYE rates with NIC, and therefore paid as salary and MyCo makes zero profit. Or, of course, I end up on PAYE/Umbrella/Whatever

But, of course, my company is still ticking on - I'm incurring accountancy fees, O365 fees, Plan B fees whatever. Can I offset these losses against previous years tax?

Not easily but you can offset them against the following year's profits.
Leave a comment:
vwdan started a topic Trading Losses While Inside IR35

8 January 2020, 16:53
Trading Losses While Inside IR35

Just a hypothetical pondering - I've got a company that's been profitable for 6 years or so now. Let's say this year I ended up inside IR35. My assumption that all IR35 income gets taxed at PAYE rates with NIC, and therefore paid as salary and MyCo makes zero profit. Or, of course, I end up on PAYE/Umbrella/Whatever

But, of course, my company is still ticking on - I'm incurring accountancy fees, O365 fees, Plan B fees whatever. Can I offset these losses against previous years tax?
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