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Forum Home  →  Discussion  →  Housing costs  →  Thread

Self employed business with nett loss - set against partner’s earnings

Dayna
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Benefits Advice Team - Bryson Energy, Northern Ireland

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Joined: 15 December 2010

I have a client who is self employed and his partner is employed full time.

His business has been operating at a loss. For tax credit purposes, that loss is set against his wife’s earnings, and tax credits has been calculated on the overall nett figure - i.e. her earnings = £15,000, his loss is £5,000, so the income used is £10,000.

Does the same rule apply for Council Tax calculations? I can’t seem to find any reference to it in my CPAG handbook or on the internet.

Kevin D
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Independent HB/CTB administrator, consultant & trainer (Essex)

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For CTB, the s/e losses of one member of a couple cannot be offset against the earned income of the other member of that couple - this was expressly considered in R(H) 5/08.

As an aside, is it correct that TC does allow such an offset?  Maybe wise not to dig further….

Dayna
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Benefits Advice Team - Bryson Energy, Northern Ireland

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Total Posts: 17

Joined: 15 December 2010

Kevin D - 08 July 2011 02:58 PM

As an aside, is it correct that TC does allow such an offset?  Maybe wise not to dig further….

Thanks!

And yes Kevin, those were my thoughts also, but I checked on the HMRC guide (I always feel a bit nervous not checking) and it states something to this effect - http://www.hmrc.gov.uk/leaflets/wtc2.pdf page 24!