Hi all
I am in the final stages of setting up a little part-time business from home. Just sorted insurance and now need to know about the Revenue.
From July 2013 to now, I have kept all the receipts etc for the purchase of equipment and samples for my business. I wasn't sure (until today) that I was going to go ahead with it, but I thought I might so kept everything anyway. It would just have been a hobby otherwise.
I haven't started trading yet but will shortly. In the tax year 2013 - 2014 I had a loss of about £1k which was my start up costs, and no income. For the current year there would likely be a profit, albeit a small one, as most of the costs are one-offs already paid out.
So, my question - if I register from now as a sole trader I presume I need to do a tax return for 2013 - 2014 by end of this year which would just be my losses. Do I get to carry this loss forward to the current year? Ie in this year 2014-2015 can I make a 'profit' of £1k before I break even? Or as this loss was before I started trading, is it ignored?
It seems like it must be carried forward as I would imagine lots of businesses have start up costs that are from the previous tax year and before they started trading, but I can't find that bit on the website.
I am also a bit unsure about the Tax Credit implications but I assume it's only profit that counts as income. (I am mostly PAYE employed and that won't change). I would imagine that a loss last year is irrelevant for Tax Credits purposes, since I wasn't trading then and have finalised that year's award anyway.
Gah - why does it have to be so complicated!?!?! Why can't I just sell stuff- I thought getting customers would be the hard bit!
Any help would be gratefully received. I am planning to call the Revenue soon but would really love to have a bit of an idea what I'm talking about first! 