-
That makes sense.
I'm reading a bit about losses and its saying I could claim for losses going back to 2016/17 but I think I'd have had to have done a return for the years the losses occurred and there's something about only claiming for the loss if it was more than your income? Selling myself the tools seems a better way to about it.
Wonder if I can lend them to myself this year since I'll likely be making a loss again anyway and then sell them to myself next year as it may be more useful to offset income then...?
M_V-
Wonder if I can lend them to myself this year since I'll likely be making a loss again anyway and then sell them to myself next year as it may be more useful to offset income then...?
Use one, but only one, of these three methods to optimise your tax affairs by earning your allowance but no more in any given year:
Once you're officially trading and filing returns, you can carry forward losses, so a loss in year one effectively becomes an expense to kick off year two.
Acquire the tools as before, but put them on the balance sheet rather than expensing the full cost in year one, and depreciate over the life of the tools
If you have some PAYE income, which I guess you must have to keep the wolf from the door, declare the loss in year one and get some of your PAYE tax rebated.
gbj_tester
You should be able to "sell" the tools of the trade which you own in person to your sole-trading self. You need to record that transaction at a price which you can defend at audit, so in practice whatever you reasonably think you could sell it for to an unrelated party. As a small sole trader, you can expense most durable things other than motor vehicles rather than booking them as assets on a balance sheet.