Helen does make a valid point re: rolling over a loss.
I'm 99% certain that you can roll over any losses for 3 years to offset any profits, although I should imagine that this would be lost in the transition from sole trader to ltd company.
So with all the expenses of setting up, it's not unfathomable to make such a huge loss (by incurring big costs) in the 1st year as to offset any profits in the following 1yr at least.
Ash
I am not doubting you can Ash, you are missing the point of my reply and why I seem to have got involved in this now very boring thread is beyond me.
Profit = tax liability, whether its paid or not is irrelevant to the thread.
Its really simple, if losses are rolled over from a prevoius years accounts and the figures say so you havent made a profit.
If a profit has been made, you will be liable for tax on that profit.
