As part of the July stimulus package, Revenue announced a scheme where if your business made a profit in 2019 but made a loss in 2020, you can accelerate the use of this loss against 2019 profits. This is an unprecedented move to allow the self-employed to estimate their loss and unused capital allowances for 2020 and set that against their 2019 tax bill. There is a limit of €25k on the amount of the loss and unused capital allowances.
Very simply this means you may be able to reduce your 2019 tax bill if you made a loss in 2020!
This is certainly a welcome help to cashflow for many businesses. This can be claimed whether or not your 2019 tax return has been submitted or not and may even result in a refund of preliminary tax paid in 2018.
Get in touch today if you need help with this or more information on any of the other grants I have mentioned here over the last few weeks.
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