I pay PAYE on my salary as an employee. I also manage a small business currently making a loss. is there any way to offet paye against thi
with self assessment you can request to offset business losses in the current year against your PAYE income which will reduce your income tax and NI.
But remember you cant claim twice so in the future when you make a profit on the self-employed/business income you cannot bring forward the same losses against the future profits as you will have already used them!
if you are a higher rate taxpayer on PAYE then this could bring you back down to basic rate which could also reinstate child benefit if you have kids and allowing for the new rules from next april but if you are only just a taxpayer in basic rate tax you might be better saving up the losses for the future. eg PAYE £10000 pa (basic rate) with £5000 loss on business would give £5000 taxable on PAYE but you will have wasted £1475 of your personal allowance as you cant offset part of your losses it has to be all used or all carried forward. | 12.14.10 @ 00:55