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Step-by-step Guide

How do I offset losses against profits (and also reduce Class 4 NIC)?

Article ID: 805
Last updated: 14 Feb, 2023

Profit chargeable to Class 4 NIC
You can offset losses against a profit to reduce Class 4 payments. To do this enter the loss amount into the profit schedule in the following places:

SimpleStep:

  • Self Employment (Full Form) > Tax and National Insurance > Adjustments to profits chargeable to Class 4 NICs
  • Partnership > National Insurance > Adjustment to profits chargeable to Class 4 NICs

       HMRC Forms Mode

  • Self Employment (full) > page 5 > Box 102
  • Partnership Pages (short/full) > page 2 > Box 27

Set off Against other income
You can offset losses against a profit to reduce tax paid. To do this enter the loss amount (which must not be greater than other profit) in the loss schedule in the following places:

SimpleStep

  • Your work > Self Employment > Full Form - Details > Losses >  Complete the box labelled "set them against other non trading income for 2020-21"
  • Your work > Self Employment > Short Form - Details > Losses >  Complete the box labelled "set them against other income for 2020-21"
  • Partnership (full/short) > Trading losses > Set it against other income for 2020-21

HMRC Forms

  • Self Employment (short) > page 2 > Box 33
  • Self Employment (full) > page 4 > Box 78
  • Partnership Pages (short/full) > Page 2 > Box 22
Article ID: 805
Last updated: 14 Feb, 2023
Revision: 14
Views: 5362
This article was:  


Also listed in
folder Tax Return Production -> SA100 Individual Return