Offset PT self-employed loss against FT job income tax?

TheDan

I'm considering setting up my own business to work at part-time in conjunction with my full-time 'proper' job. I'm currently paying the basic level of income tax and don't expect that to change with any earnings from my new venture - not immediately anyway.

With the initial start-up costs and a potentially slow start to building turnover (I'm deliberately thinking worst-case for the purposes of this query!) is there a way of me declaring any loss and somehow offsetting it against the income tax for my main employment?

Any help appreciated - I've never really got my head around the black art of tax!

BoGoF

Yes it can be done in your Self Assessment Tax Return that you would be completing as a self employed person.

ceeforcat

Absolutely - your taxable PAYE income can be reduced by the amount of your losses but those attributable to that tax year. You need to be familiar with taxable basis periods and I would always suggest that you take advice where losses arise.

John_Pierpoint

I seem to remember rules being introduced as long ago as 1960-ish to prevent life style "hobby" farmers getting their Monday to Friday tax to subsidise their weekend rural idyll and daughter's pony.
How many years could one make losses before HMRC decided not to subsidise a hobby by ring fencing its losses?