Your business is making a loss if its expenses are greater than its income. Businesses making a loss do not have to pay income tax. A loss can often be used to reduce your taxable income in the future.
Losses and how they may apply to you
Find out more about losses and how they apply to your situation.
Claiming losses on stolen cryptoassets
Extinguishing losses for tax debt written off
Self-employed adjustments
If you are self-employed losses may be adjusted when working out your Working for Families entitlement or your student loan repayment.
Examples of losses when you receive Working for Families
I am self-employed and making a loss
Repaying my student loan when I am self-employed or earn other income
Last updated:
18 Sep 2026