Trading Losses for Self Employed- How are losses treated.

As accountants in Hammersmith we are asked how losses in a self-employed business are treated for income tax purposes that relates to Sole Trader or Partnership income. Hammersmith Chartered Accountants will explain how the law interprets to tax losses and how they are treated in tax law. This article will describe the way tax losses are treated and how they can be offset against other income in the same tax year or backdated against previous years profits or carried forward and relieved against future income tax profits.

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