If I’m not earning a profit do I need to do a tax return?

As long as you are trading, you must submit a tax return to HMRC each year, regardless of whether you are earning below the tax threshold.

If you are making a loss, it is beneficial to submit a tax return to HMRC as the loss can be carried forward and offset against any future profits. Alternatively, the loss can be offset against any other income during that financial year which could result in a tax rebate.

At The Accountancy Partnership, we send our clients reminders of when their tax return is due and work hard to ensure they do not pay any unnecessary tax. If you would like a quotation or further information please do not hesitate to phone or email us, or alternatively, you can simply use the live chat link available.

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About The Author

Lee Murphy

MAAT and ICPA accountant, with a passion for making accountancy and bookkeeping accessible. Other interests include cloud-based software development for web and mobile access, keeping fit, reading, and entrepreneurship.