Q: i am both employed and self employed. If i make a loss self employed, could i claim it back out of the tax i pay as an employee?
Oct 19 2008
Answered by: Clive Lewis Ask a question
Provided your self-employment business is unincorporated – i.e. you are trading as a sole trader; the loss of the business can be offset against your income from full time employment to arrive at your total taxable income. The mechanism for doing this would be to complete two separate sections of your Tax Return - the “Self Employed” and “Employment” sections.
However if the “self employment” businesses is a limited company and it makes a loss you can only carry forward the loss in the company to offset against future profits of the same company or carry back to the previous year, subject to an adjustment if the accounting periods are less than a full year
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