First tax return...spent more than I earned!

[cupcakencookie]

Hi everyone
I'm filling in my first tax return and getting in a right old tizzy! I got my first child in November last year so registered with Inland Revenue straightaway but was only working one hour a week until end of February this year. I'd been buying resources and toys for over a year and keeping receipts as I couldn't afford to do it all at once so was planning putting all of my set up expenses down as my first entry. The thing is my expenses are ALOT more than what I've earned in total (about 5x more!:panic:) If I enter all my expenses now will I be able to start off as a loss next year or will it be struck off? Not sure if I'd be better off putting them down on next years tax return but don't know if that is allowed.. Any advise would be really welcome before I hit the bottle!!! Thanks :)

[sing-low]

Not entirely sure but I think you can have a loss for 12/13 and then put that as your starting figure in 13/14. Have a look at some other threads on this part of the forum. I'm sure the answer's there. Don't hit the bottle (even more expenses :))

[munch149]

I'm pretty sure a loss is carried over. I wouldn't recommend delaying putting things on especially if they have receipts as could get caught out.

[cupcakencookie]

I'm pretty sure a loss is carried over. I wouldn't recommend delaying putting things on especially if they have receipts as could get caught out.

Thank you - I thought that was the case but just needed to hear it from someone else!

[Rick]

I'm pretty sure a loss is carried over. I wouldn't recommend delaying putting things on especially if they have receipts as could get caught out.

Exactly. In your tax return for 2013/14 you can enter a loss which basically reduces next years profit and you pay less tax :thumbsup:

[cupcakencookie]

Not entirely sure but I think you can have a loss for 12/13 and then put that as your starting figure in 13/14. Have a look at some other threads on this part of the forum. I'm sure the answer's there. Don't hit the bottle (even more expenses :))

Thank you Sing-Low for the good advice! I think the only bottle I'll be hitting tonight will be of the hot water variety - my brain is already well and truly fuddled with all this paperwork and definitely doesn't need any extra fuddling!:laughing:

[cupcakencookie]

Exactly. In your tax return for 2013/14 you can enter a loss which basically reduces next years profit and you pay less tax :thumbsup:

Thank you so much!

[Chatterbox Childcare]

Don't worry if your loss is high, you can prove what you spent and that you only worked 1 hour a week.

Put everything in you can as it will help reduce any potential tax profit for the next financial year

[blue bear]

I did the same the first year it because i had been emplyed elsewhere in that financial year and and paid tax they sent me a refund rather than carry it over

[bunyip]

Don't worry. One of my CM groups had a training talk from an HMRC officer. Apparently they expect most business nto make no profit for the first 2-3 years.

Btw, it doesn't necessarily mean that CMing is not worth your while. Some of your allowable expenses (e. heating, lighting, wear and tear, etc.) would have to be paid even if you were not minding. :thumbsup: