IS IT OK TO MAKE A LOSS IN BUSINESS?

Worried about making a loss in your business? In this video Dan discusses this topic.
Topics include:
Is it ok to make a loss in your first year
Is it ok to make a business loss
Can you make losses in business
How tax losses work
Why it can be good to make a loss
Are losses sustainable
Should I make a loss in first few years
Trading insolvently
… and more!
If you have any questions on this, please comment below.
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[@طلالشاويش-ك1ه]

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[@HeelanAssociates]

👊

[@chrischadwick1]

In 22/23 I made a loss because I invested my own money into camera equipment on top of reinvesting money I made in my videography bussiness. I made £3K and spent £7K. If I declare 3k of expenses this year can I carry the remaining 4k as expenses into 23/24?

[@HeelanAssociates]

You would declare the 7k in your example and it would create a loss. In a usual trading loss situation you would carry this loss forward in your tax return to use against next years profits. There are certain criteria with losses to watch out for, but in general that’s the idea.

[@dickieblench5001]

Thanks. Does this mean you can offset the value of the loss against tax the following years until the total loss is removed?

[@HeelanAssociates]

Sort of. The trading loss can be offset in a few ways, but one being against your future trade profits. As you say, until you’ve used em up.

[@khalilahclemons786]

Great video! Thank you ❤

[@HeelanAssociates]

Glad you enjoyed!