Trading loss for sole traders.
IT is possible when running a business to make a loss. Ola Sulaimon of Ronzl Accountants explains some of the issues to consider when a loss has been made by a sole trader.
1. Make all the necessary adjustments
Losses are derived by deducting trading expenses from trading Profit within the same basis period. The sole trader has to ensure that all the expenses deducted are wholly and exclusively for the purpose of the trade that has been carried out in the same period.