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Hi everyone. I got an exemption for the TX-UK paper so I’m learning both the TX and ATX syllabuses for the September sitting.
I was wondering if somebody could confirm or correct me on this.
When an individual taxpayer has trading losses that they carry back to offset against general income, is it true that:
– If the past income was from self-employment, they get a refund of both Income tax and NIC class 4; but
– If the past income was from employment, they only get a refund of Income tax, but not NIC class 1?Thank you in advance.
I am fairly certain the second part involving the class 1 nics is correct. In terms of the first part, I asked the AI tutor and it said this was possible. I tend to believe, however, that the losses on national insurance class 4 and income tax would have to be calculated separately and then applied separately to their respective groups.
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