If your business has never made a profit, I would advise against this. The reason being is that there is a risk that HMRC could regard your writing business as an uncommercial trade or more commonly referred to as a ‘hobby trade’. If HMRC consider this to be the case then loss relief is restricted. HMRC may not query straightaway so there is a risk that each year you receive a repayment of tax and are then required to repay. For a trade to be commercial you have to prove that it is carried on on a commercial basis with a view to realisation of profits. Things that could help your case for losses to be allowed: · A written business plan which shows the business will make profits and can be run on a commercial basis · Losses are reviewed and considered before making the tax return · Book-keeping is accurate enough to detail all income and expenditure and can identify the loss making elements · Notes or a diary are retained to identify and explain any factors that have negatively impacted the business