U.K. tax questions

Nov 27, 2005 1 Replies
C

I'd be grateful for advice on the following:


  1. Is income taxable in the year earned or received? eg I do a job in March 2005 but get paid in May 2005, is the profit taxed in 2004/5 or

2005/6?


  1. Can losses from one year be carried into following years for tax, and if so is there a limit how far may they be carried forward? eg I make a loss in 2004/5, but a profit in 2005/6, can the earlier loss be deducted from the profit?

  2. Can insurance premium payments, eg life or critical illness insurance, be deducted for tax purposes?

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R

The former.

Yes. No. Yes. Respectively.

Only if they are related to the business. Generally with life or CI cover, that would not be the case, certainly not if you're insuring the life or health of a sole tradership's proprietor. If you had a key employee, without whom the business would collapse because by the time a replacement could be found, it would be too late, then you might possibly get away with it (provided the business, not the employee, is the beneficiary), but normally a business can only deduct insurance premiums for business assets, such as premises, equipment, vehicles, and stock.

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