SA and PAYE question

Alice White
Alice White Registered Posts: 12 New contributor 🐸
I was in the pub last night..
Someone asked me this. I dont know the answer, so can any one help please?

Pete is employed and pays 40% tax. he also does some self-employed work at home and declares that, less expenses on his tax return.

but this year he's spent quite a bit on advertising and has probably made a loss. The question is, can he off-set that loss against his PAYE and reduce his tax there?


  • T.C.
    T.C. Registered, Tutor Posts: 1,448 Beyond epic contributor 🧙‍♂️
    Obviously the loss will be shown on the Tax Return and any overpaid tax refunded when this is submitted.
  • farmergiles
    farmergiles Registered Posts: 1,693 Beyond epic contributor 🧙‍♂️
    If Pete is also working self employed then he should be registered with the revenue and complete a S/A tax return, complete with self employed supplement. He also should produce a profit and loss account.He cannot offset his loss but he can carry it forward to offset against any profits made in the following year, thus reducing his tax liability in that tax year.
  • Bluewednesday
    Bluewednesday Registered Posts: 1,624 Beyond epic contributor 🧙‍♂️
    I agree with T.C.

    A S380 claim can set his loss against employment income of the same year, he doesn't have to carry the losses forward.

    This is quite a useful summary to decide what is the best way forward
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