Self Assesment tax return

[early_m]

I started my business in Feb 2012 and am completing my 11/12 tax return). From the date I started to the 5th April (6 weeks) I didn't take any income or make any profit, but I did buy lots of equipment. Is this an income tax loss? And as I didn't make a profit how do I offset the loss against the 12/13 tax year? Thanks.

[buildersmate]

You need to bone-up on 'capital allowances'. Start by reading here.
http://www.hmrc.gov.uk/capital-allowances/basics.htm#1

You can't simply offset the cost of equipment that lasts a long time against the SA income you made in the year of the purchases. These items are known as 'capital items'.

It is probably in your interests to offset as much as you can though, and HMRC are pretty clear about what is subject to capital allowances and what is not.

[Skyline D]

To be fair he almost certainly CAN offset the cost of capital equipment against SA income. It's extremely unlikely that he's bought enough to not qualify for Annual Investment Allowance (AIA).

So yes, it's an income tax loss most likely and you can carry the loss forward to use against future profits. If you are not sure what you are doing though better to find an accountant.