{"id":2273,"date":"2020-09-17T04:00:00","date_gmt":"2020-09-17T04:00:00","guid":{"rendered":"http:\/\/im-20543"},"modified":"2023-01-11T11:08:10","modified_gmt":"2023-01-11T11:08:10","slug":"relief-for-self-employed-trading-losses","status":"publish","type":"post","link":"https:\/\/www.oneaccounting.co.uk\/relief-for-self-employed-trading-losses\/","title":{"rendered":"Relief for self-employed trading losses"},"content":{"rendered":"<p>There are a number of tax reliefs available for self-employed taxpayers that make a loss carrying on their trade, profession or vocation (collectively referred to as a &lsquo;trade&rsquo;) and for their share of trading loss for any partnerships they are involved with.<\/p>\n<p>For the 2020-21 tax year, trade losses can be relieved in a number of ways. This includes the following:<\/p>\n<ul>\n<li>By using the loss to reduce income for the year ended 5 April 2020 and \/ or 5 April 2019. If there are still trade losses remaining (after your income has been reduced to nil) then you may be able to set-off some or all of the remaining loss against chargeable gains.<\/li>\n<li>A claim can also be made for losses made in the first 4 years of trade known as early trade losses relief. Taxpayers need to look at the earliest year first (i.e. 2016-17) and use any remaining loss in 2017-18 and then in 2018-19. The time limit for making claims for 2019 to 2020 losses is 31 January 2022.<\/li>\n<li>Taxpayers can carry forward any loss against future profits of the same trade or income from the company (where you transfer your trade to a company in exchange for shares in that company), or post cessation receipts<\/li>\n<li>Terminal loss relief is available for businesses that suffer a loss in the last 12 months of trade of a business.&nbsp;Terminal loss relief allows for the carry back of any trading losses that occur in the final 12 months of trading to be set off against profits made during the&nbsp;final tax year or any or all of the previous three tax years.<\/li>\n<li>Self-employed taxpayers who were previously employed can offset trading losses against employment earnings or other earned income in the current or preceding tax year.&nbsp;<\/li>\n<\/ul>\n<p>There is also an overall cap on certain Income Tax reliefs. The cap is set at 25% of income or &pound;50,000, whichever is the greater.<\/p>\n<div style='font-size:smaller' class='im_source'>Source: HM Revenue &#038; Customs   Sun, 13 Sep 2020 00:00:00 +0100<\/div>\n","protected":false},"excerpt":{"rendered":"<p>There are a number of tax reliefs available for<\/p>\n","protected":false},"author":1,"featured_media":2274,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Relief for self-employed trading losses - One Accounting<\/title>\n<meta name=\"description\" content=\"There are a number of tax reliefs available for\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.oneaccounting.co.uk\/relief-for-self-employed-trading-losses\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Relief for self-employed trading losses - One Accounting\" \/>\n<meta property=\"og:description\" content=\"There are a number of tax reliefs available for\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.oneaccounting.co.uk\/relief-for-self-employed-trading-losses\/\" \/>\n<meta property=\"og:site_name\" content=\"One Accounting\" \/>\n<meta property=\"article:published_time\" content=\"2020-09-17T04:00:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-01-11T11:08:10+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.oneaccounting.co.uk\/wp-content\/uploads\/2020\/09\/1edfd12e-9ac6-4b1a-ad02-22a1e6facd3e.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"533\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.oneaccounting.co.uk\/relief-for-self-employed-trading-losses\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.oneaccounting.co.uk\/relief-for-self-employed-trading-losses\/\"},\"author\":{\"name\":\"Admin\",\"@id\":\"https:\/\/www.oneaccounting.co.uk\/#\/schema\/person\/846d7ee0fcbd148e3fd1aa38300917d3\"},\"headline\":\"Relief for self-employed trading losses\",\"datePublished\":\"2020-09-17T04:00:00+00:00\",\"dateModified\":\"2023-01-11T11:08:10+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.oneaccounting.co.uk\/relief-for-self-employed-trading-losses\/\"},\"wordCount\":326,\"publisher\":{\"@id\":\"https:\/\/www.oneaccounting.co.uk\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.oneaccounting.co.uk\/relief-for-self-employed-trading-losses\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.oneaccounting.co.uk\/wp-content\/uploads\/2020\/09\/1edfd12e-9ac6-4b1a-ad02-22a1e6facd3e.jpg\",\"articleSection\":[\"News\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.oneaccounting.co.uk\/relief-for-self-employed-trading-losses\/\",\"url\":\"https:\/\/www.oneaccounting.co.uk\/relief-for-self-employed-trading-losses\/\",\"name\":\"Relief for self-employed trading losses - One Accounting\",\"isPartOf\":{\"@id\":\"https:\/\/www.oneaccounting.co.uk\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.oneaccounting.co.uk\/relief-for-self-employed-trading-losses\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.oneaccounting.co.uk\/relief-for-self-employed-trading-losses\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.oneaccounting.co.uk\/wp-content\/uploads\/2020\/09\/1edfd12e-9ac6-4b1a-ad02-22a1e6facd3e.jpg\",\"datePublished\":\"2020-09-17T04:00:00+00:00\",\"dateModified\":\"2023-01-11T11:08:10+00:00\",\"description\":\"There are a number of tax reliefs available for\",\"breadcrumb\":{\"@id\":\"https:\/\/www.oneaccounting.co.uk\/relief-for-self-employed-trading-losses\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.oneaccounting.co.uk\/relief-for-self-employed-trading-losses\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.oneaccounting.co.uk\/relief-for-self-employed-trading-losses\/#primaryimage\",\"url\":\"https:\/\/www.oneaccounting.co.uk\/wp-content\/uploads\/2020\/09\/1edfd12e-9ac6-4b1a-ad02-22a1e6facd3e.jpg\",\"contentUrl\":\"https:\/\/www.oneaccounting.co.uk\/wp-content\/uploads\/2020\/09\/1edfd12e-9ac6-4b1a-ad02-22a1e6facd3e.jpg\",\"width\":800,\"height\":533},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.oneaccounting.co.uk\/relief-for-self-employed-trading-losses\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"News\",\"item\":\"https:\/\/www.oneaccounting.co.uk\/category\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Relief for self-employed trading losses\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.oneaccounting.co.uk\/#website\",\"url\":\"https:\/\/www.oneaccounting.co.uk\/\",\"name\":\"One Accounting\",\"description\":\"Small Business Accountants Edinburgh\",\"publisher\":{\"@id\":\"https:\/\/www.oneaccounting.co.uk\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.oneaccounting.co.uk\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.oneaccounting.co.uk\/#organization\",\"name\":\"One Accounting\",\"url\":\"https:\/\/www.oneaccounting.co.uk\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.oneaccounting.co.uk\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.oneaccounting.co.uk\/wp-content\/uploads\/2020\/05\/One_Accounting-logo_502px.png\",\"contentUrl\":\"https:\/\/www.oneaccounting.co.uk\/wp-content\/uploads\/2020\/05\/One_Accounting-logo_502px.png\",\"width\":503,\"height\":503,\"caption\":\"One Accounting\"},\"image\":{\"@id\":\"https:\/\/www.oneaccounting.co.uk\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.oneaccounting.co.uk\/#\/schema\/person\/846d7ee0fcbd148e3fd1aa38300917d3\",\"name\":\"Admin\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.oneaccounting.co.uk\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/1e46787b0680a930ed1efa660e68e78c?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/1e46787b0680a930ed1efa660e68e78c?s=96&d=mm&r=g\",\"caption\":\"Admin\"}}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Relief for self-employed trading losses - One Accounting","description":"There are a number of tax reliefs available for","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.oneaccounting.co.uk\/relief-for-self-employed-trading-losses\/","og_locale":"en_US","og_type":"article","og_title":"Relief for self-employed trading losses - One Accounting","og_description":"There are a number of tax reliefs available for","og_url":"https:\/\/www.oneaccounting.co.uk\/relief-for-self-employed-trading-losses\/","og_site_name":"One Accounting","article_published_time":"2020-09-17T04:00:00+00:00","article_modified_time":"2023-01-11T11:08:10+00:00","og_image":[{"width":800,"height":533,"url":"https:\/\/www.oneaccounting.co.uk\/wp-content\/uploads\/2020\/09\/1edfd12e-9ac6-4b1a-ad02-22a1e6facd3e.jpg","type":"image\/jpeg"}],"author":"Admin","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Admin","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.oneaccounting.co.uk\/relief-for-self-employed-trading-losses\/#article","isPartOf":{"@id":"https:\/\/www.oneaccounting.co.uk\/relief-for-self-employed-trading-losses\/"},"author":{"name":"Admin","@id":"https:\/\/www.oneaccounting.co.uk\/#\/schema\/person\/846d7ee0fcbd148e3fd1aa38300917d3"},"headline":"Relief for self-employed trading losses","datePublished":"2020-09-17T04:00:00+00:00","dateModified":"2023-01-11T11:08:10+00:00","mainEntityOfPage":{"@id":"https:\/\/www.oneaccounting.co.uk\/relief-for-self-employed-trading-losses\/"},"wordCount":326,"publisher":{"@id":"https:\/\/www.oneaccounting.co.uk\/#organization"},"image":{"@id":"https:\/\/www.oneaccounting.co.uk\/relief-for-self-employed-trading-losses\/#primaryimage"},"thumbnailUrl":"https:\/\/www.oneaccounting.co.uk\/wp-content\/uploads\/2020\/09\/1edfd12e-9ac6-4b1a-ad02-22a1e6facd3e.jpg","articleSection":["News"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.oneaccounting.co.uk\/relief-for-self-employed-trading-losses\/","url":"https:\/\/www.oneaccounting.co.uk\/relief-for-self-employed-trading-losses\/","name":"Relief for self-employed trading losses - One Accounting","isPartOf":{"@id":"https:\/\/www.oneaccounting.co.uk\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.oneaccounting.co.uk\/relief-for-self-employed-trading-losses\/#primaryimage"},"image":{"@id":"https:\/\/www.oneaccounting.co.uk\/relief-for-self-employed-trading-losses\/#primaryimage"},"thumbnailUrl":"https:\/\/www.oneaccounting.co.uk\/wp-content\/uploads\/2020\/09\/1edfd12e-9ac6-4b1a-ad02-22a1e6facd3e.jpg","datePublished":"2020-09-17T04:00:00+00:00","dateModified":"2023-01-11T11:08:10+00:00","description":"There are a number of tax reliefs available for","breadcrumb":{"@id":"https:\/\/www.oneaccounting.co.uk\/relief-for-self-employed-trading-losses\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.oneaccounting.co.uk\/relief-for-self-employed-trading-losses\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.oneaccounting.co.uk\/relief-for-self-employed-trading-losses\/#primaryimage","url":"https:\/\/www.oneaccounting.co.uk\/wp-content\/uploads\/2020\/09\/1edfd12e-9ac6-4b1a-ad02-22a1e6facd3e.jpg","contentUrl":"https:\/\/www.oneaccounting.co.uk\/wp-content\/uploads\/2020\/09\/1edfd12e-9ac6-4b1a-ad02-22a1e6facd3e.jpg","width":800,"height":533},{"@type":"BreadcrumbList","@id":"https:\/\/www.oneaccounting.co.uk\/relief-for-self-employed-trading-losses\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"News","item":"https:\/\/www.oneaccounting.co.uk\/category\/news\/"},{"@type":"ListItem","position":2,"name":"Relief for self-employed trading losses"}]},{"@type":"WebSite","@id":"https:\/\/www.oneaccounting.co.uk\/#website","url":"https:\/\/www.oneaccounting.co.uk\/","name":"One Accounting","description":"Small Business Accountants Edinburgh","publisher":{"@id":"https:\/\/www.oneaccounting.co.uk\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.oneaccounting.co.uk\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.oneaccounting.co.uk\/#organization","name":"One Accounting","url":"https:\/\/www.oneaccounting.co.uk\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.oneaccounting.co.uk\/#\/schema\/logo\/image\/","url":"https:\/\/www.oneaccounting.co.uk\/wp-content\/uploads\/2020\/05\/One_Accounting-logo_502px.png","contentUrl":"https:\/\/www.oneaccounting.co.uk\/wp-content\/uploads\/2020\/05\/One_Accounting-logo_502px.png","width":503,"height":503,"caption":"One Accounting"},"image":{"@id":"https:\/\/www.oneaccounting.co.uk\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/www.oneaccounting.co.uk\/#\/schema\/person\/846d7ee0fcbd148e3fd1aa38300917d3","name":"Admin","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.oneaccounting.co.uk\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/1e46787b0680a930ed1efa660e68e78c?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/1e46787b0680a930ed1efa660e68e78c?s=96&d=mm&r=g","caption":"Admin"}}]}},"_links":{"self":[{"href":"https:\/\/www.oneaccounting.co.uk\/wp-json\/wp\/v2\/posts\/2273"}],"collection":[{"href":"https:\/\/www.oneaccounting.co.uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.oneaccounting.co.uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.oneaccounting.co.uk\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.oneaccounting.co.uk\/wp-json\/wp\/v2\/comments?post=2273"}],"version-history":[{"count":1,"href":"https:\/\/www.oneaccounting.co.uk\/wp-json\/wp\/v2\/posts\/2273\/revisions"}],"predecessor-version":[{"id":8049,"href":"https:\/\/www.oneaccounting.co.uk\/wp-json\/wp\/v2\/posts\/2273\/revisions\/8049"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.oneaccounting.co.uk\/wp-json\/wp\/v2\/media\/2274"}],"wp:attachment":[{"href":"https:\/\/www.oneaccounting.co.uk\/wp-json\/wp\/v2\/media?parent=2273"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.oneaccounting.co.uk\/wp-json\/wp\/v2\/categories?post=2273"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.oneaccounting.co.uk\/wp-json\/wp\/v2\/tags?post=2273"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}