Losses

In the early years of your business or if you are experiencing a downturn in trade you may generate a loss rather than a profit. There are three different ways that losses can be treated:

1. Carried forward to set against future years self-employed profits
2. Sideways relief - this is where the losses are set against other taxable earnings you have in the same tax year
3. Carry back of losses - under certain circumstances losses can be carried back against prior tax periods and potentially will generate a tax refund. Please speak to us if you need further advice on this as it is quite complicated.