1)As a sole trader, if I make a loss, I believe I can carry that loss forward to future tax years. Is that correct? Not sure if the cause of the loss is relevant but it was due to repayment of a business loan (allowable expense?)
If the above is ok, then I have no profits for tax year 16/17 and as such have not used any of my personal allowance of 11000.
2)As I have a SIPP in flexible draw down I wonder if I can contribute the £3600 that everyone is allowed made up of my contribution of £2880 + the tax mans contribution of £720. Then withdraw 25% of the £3600 ie £900 as a tax free lump sum and up to another £11000 to fully utilise my personal allowance for the year?
Would appreciate anyone pointing out obvious flaws in this approach.
Moderator Message:
Moved from DAK - Chris
Moved from DAK - Chris