How do I offset losses against profits (and also reduce Class 4 NICs)?
Profit chargeable to Class 4 Losses can be offset against a profit to reduce Class 4 payments. To do this you enter the loss amount into the ‘profit’ schedule in the following places: • For Self-employment you must use the Self-employment full form and HMRC Forms Mode page 5 box 101 • For Partnership use HMRC Forms Mode either short or full page 2 box 25 Against other income Losses can be offset against a profit to reduce tax paid.
