Offsetting losses against PAYE

Raksha

I do a little bit of PAYE work, but most of my time is spent in S/E - would I be better off doing a little more PAYE to offset any operating 'book' losses against the PAYE (My car runs on LPG and I do a fair bit of mileage, so it appears as if I make a loss, when infact it's only on paper)

Hope that makes sense.......

interest_Ted

I'm sorry if I might have the wrong end of the stick....but I can't think of any situations where you can offset s/e losses against earnings from employment. The only thing (that I can think of in this context) that you can offset against employed earnings are expenses that are incurred necessarily for that job and which are not (or not fully) reimbursed by your employer.

If you are saying that your expenses (even though just on paper) in employment are higher than your income from employment, and are asking if you can offset those losses against your s/e earnings, then I am 99% certain that the answer is no. Employed earnings (and related expenses) are an entirely separate item from s/e income and related expenses.

I am only speaking from experience - I am not qualified in this area. Nevertheless - hope its helpful.

Ted

moneywise22

I think he is talking about when he completes his tax return for self-employment, you have to declare profit or loss from self employment and also any salary from employment, so when the revenue calculate how much tax you owe they also look to see if you have overpaid or underpaid any tax on your employed earnings.
In this case, he will have paid tax on his earnings for the year in employment as if that is what he actually earnt for the year, when in actual fact he will have earnt less because of the loss he made in self-employment. So when he completes his tax return the revenue will see he paid too much tax in the year.

Raksha, it really depends on the figures, and what you have earnt so far. Can you give us some more information?