self employment loss and tax credits

[poppynurse]

My OH was made redundant so set up in his own business part way through the 06/07 tax year. He had earnings from employment, JSA and then made a loss in his first months of trading. I have just filled in my final tax credits form for 06/07 and it won't allow me to put a loss in his income for self employment, I have to put 0.

My point is that it did reduce his total income by over £3500 for the year, surely they must recognise this in calculating our tax credits??? I was counting on a bit of cash from them to keep us afloat or he may have to pack in the business and go back on JSA which is in no-ones interests. He's just starting to make a profit but we are having a cashflow problem

[JSchoey]

Maybe if you phone the WFTC up and complete your declaration over the phone they can advise you on this. There is an option for you to complete your declaration on the phone.

 

Good luck.

[poppynurse]

I tried that but they just say we have to put 0 and sent me the form to sign. Has anyone experienced a similar problem?