Losses and National Insurance 25/26

If Biba has a trading loss and decides to make a s83 loss relief claim against future years, it must be set against the first available:

• Trading profits arising from the same trade.

• Trading profits arising from any trade.

• Total income.

• Taxable income.

s83 carry forward trade loss relief must be used:

• Against future total profits before the personal allowance has been deducted.

• Against future total profits after the personal allowance has been deducted.

• Against the next available future trading profits before the personal allowance has been deducted.

• Against the next available future trading profits after the personal allowance has been deducted.

Under s72 trading losses incurred in the first ---- tax years may be carried back against total income of the three preceding tax years. Fill in the blank.

• Two

• Three

• Four

• Five

If a claim has been made for s72 early trade loss relief, the claim applies to ALL of the three years concerned.

• True

• False

There are special rules for calculating the amount of a terminal loss that can be relieved under s89 terminal trade loss relief. True or False?

• True

• False

Terminal trade loss relief is given against any trading profits of the tax year in which the cessation occurs and the previous three tax years. Relief is given against earlier years first. True or False?

• True

• False

Alison is an employee, which Class of national insurance contributions will she personally pay?

• Class 4

• Primary Class 1

• Secondary Class 1

• Primary Class 1 and Class 1A

A self employed person may potentially pay which Class (es) of national insurance contributions

• Class 2 only

• Class 4 only

• Class 2 and Class 4

In tax year 2025/26, a self employed trader will be required to pay a flat rate of £3.50 per week of Class 2 NICs if their profits exceed the small profits threshold of £6,845.

• True

• False

Class 4 national insurance contributions are calculated at a flat rate of 6%

• True

• False