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