How the self-employed can use losses to cut past, current or future tax bills – Money tip #148

1 min read Published: 02 Nov 2011

calculating tax If you are self-employed and incur a trading loss you can use it reduce past, current and future tax bills. You can do this by setting the loss against:

  • other income for the same year or the previous year
  • gains for the same year or the previous year - if your other income is used up
  • other income in the previous three years if your business started within the past four years
  • profits for the business in the previous three years if your business has ceased

 

Image: Arvind Balaraman / FreeDigitalPhotos.net

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