Ceri,
2 years to become profitable or you will be regarded as a hobby? Are you sure this is correct? It doesn’t sound right at all but I am always prepared to be corrected (educated!). I did a lot of research into running a limited company because I ran another business as a Limited Company many years ago and I know many rules have changed.
However, I don’t recall ever reading anywhere that a limited company must be profitable. There are certain conditions in regard to remaining solvent, but that is completely different to being profitable.
A limited company is regarded as separate legal entity, almost like it is a separate person, so I am fairly certain you cannot use any losses from the company to offset taxes on your personal income. Just like one person cannot offset their losses against another person’s income. They are two completely separate legal entities.
Like I said earlier, I always like to be corrected when I am mistaken.
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