SE Allowance

[jaydah]

If profits dont absorb an Allowance is the allowance paid out or held by IR ?

[factor-fiction]

By IR do you mean the old Inland Revenue- ie HMRC?
I'm not sure what you mean by "paid out or held by IR". I'm not sure either applies. Could you clarify what you mean?

[factor-fiction]

Oh, and what is an SE allowance?
Is this a UK or US query?

[jaydah]

HMRC award allowances for self employed. Tax office usually write & inform of current years allowance when assessing tax due.

Do the tax office pay out any surplus allowance ?

[factor-fiction]

I don't know, sorry, but I doubt it on the basis that in the case of an employed person if my earnings are below the level of the basic tax allowance I simply wouldn't pay tax - I wouldn't get any money from HMRC.
Do you have an accountant?

[buildersmate]

If you've made a business loss in a year, then you've made a business loss.
You can offset that loss against future year's profits, but that's your lot, I'm afraid.

[jaydah]

yep - he said I will receive a hefty sum paid into my account from HMRC - shall I risk a spending spree :)

[Skyline D]

HMRC do not give any allowances to the self employed at all. The self employed are treated exactly the same as the employed in that they get a personal allowance which they can earn up to before paying any tax. It's an allowance given to all UK taxpayers, nothing to do with being Self Employed particularly.

And no, if your profits are less than the allowance you don't get anything back. It isn't a sum of cash, it's just an amount you can earn before they will assess you for tax.

If however your profits have dropped considerably from last year it's likely you will get a tax repayment as you'll have made payments on account already to pay off this year's estimated tax liability and those will be refunded.

[hc4361]

Have you read this?
http://www.hmrc.gov.u...x/relief-self-emp.htm

You certainly don't get a pay out.