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Loss made but no rebate?

26/01/2018 10:09:09
Hello,
I'm a self employed actress. Last year (y/e 2016) I made a loss but I did not receive any form of rebate. I entered it on this year's return (ye 2017) as a carried forward loss but again it did not reduce my tax bill at all.

If a loss is made, should this not reduce the amount of tax paid. At the moment I am just being billed for the usual proportion of the net profit for this year.

Thank you.
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Re:Loss made but no rebate?

26/01/2018 11:42:07
Hello Anita

A self employed loss arising in the year would only generate a repayment if a request is made on the tax return to set that loss against other income for that year. There would need to be tax paid on other income in that year for this to apply.

Also, if you are using the cash basis, there is no option to set self employed losses sideways against other income. You would only have the option to carry the loss forward.

A loss carried forward to the following year cannot be set sideways against other income in the following year.

I attach a link to the help sheet on losses which will help.

https://www.gov.uk/government/publications/losses-hs227-self-assessment-helpsheet/hs227-losses-2017

Kind regards

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