LOSS AND PROFIT

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  • #31725
    VIKKIE
    Participant

    Self employed claim

    Clmt is running on a loss of -£4,500 partner self employed running on a profit of £11,000

    Clmt asked if we would blance the two off against each other ie 11,000 minus her loss?

    Ive said no her income would be added as £0.00 and his in as £11,000?

    Is this correct please?

    #88750
    Kevin D
    Participant

    [quote:096f3f57aa=”VIKKIE”]Ive said no her income would be added as £0.00 and his in as £11,000?

    Is this correct please?[/quote:096f3f57aa]

    [b:096f3f57aa]R(H) 5/08[/b:096f3f57aa] confirms this to be the correct approach. [b:096f3f57aa]HBR 38(10)[/b:096f3f57aa] also makes it clear that if one person has multiple employments, losses of one business cannot be offset against the profit of other businesses. Bear in mind that for the purposes of income and capital, the income of a partner counts as income of the claimant – [b:096f3f57aa]HBR 25(1)[/b:096f3f57aa] and [b:096f3f57aa]s.136(1) SSCBA 1992[/b:096f3f57aa].

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