If you make a loss - does it affect your tax credits?

[KatyMac]

I know I should ring but it's all so complicated

Last year I made a loss (about £8k) will it affect my tax credits?

Yes, it does. When dh made a loss it was taken off my total income for the year.

Well.....I am on hold

yes it gets taken into account with your whole amount and you may get your tax creds adjusted (i did)

wow
Wow
WOW

That will make a big difference - I wonder if I will get it as a lump sum

My lump sum was in my bank within days.

I always over-estimate our income every year so that they end up giving me money, not the other way round.

Oh - it doesn't make any difference according to the chap on the phone

Well that was a waste of an hour

Katy Mac - are you in a joint or single claim?

Any self employed losses can be written off against other household income - if you're in a single claim, with no other income sources, obviously no difference other than your income for the previous year can be entered as nil, and again for current year if circumstances haven't changed.

If you're in a joint claim however, and your partner's employed, you CAN KNOCK YOUR SELF EMPLOYED LOSSES OFF YOUR OTHER INCOME

I'll dig for hmrc links, but it's legit, just tell your advisor to check their self employed income guidance.

Joint but it only takes last years income to about 19k & that is too much to get more than the basic child bit

So, joint income less losses equals 19K?

One child on the claim?

Yep

I work F/T dh is retired (if it matters)

Did you write any of your losses off against DH income, if he had any?

If he receives any pensions, you can write losses off against them.

It depends how much you've changed your previous year estimates by - CAT me if you want to discuss this off-board, being personal finance and all.

Thanks I have