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Tax Returns - Oliver Niland Chartered Accountant & Tax Specialist - Galway Ireland

Start up/ New Business

Starting a new business - Start your own business - Oliver Niland Chartered Accountant  & Tax Specialist Galway Ireland

Can I offset a loss on my trade against my other income ?

Can I offset a loss on my trade against my other income ?

CAN I USE A LOSS ON MY TRADE AGAINST OTHER INCOME ?

Yes, it’s called S.381 loss tax relief

If you are self-employed or part of a partnership and you make a loss in a tax year, you can offset that loss against your other income such as P60 or rental income.  This could generate a tax refund.

Also if you are married, you can use this loss if not used up against your spouse’s income.

From a tax planning point of view for start up businesses which are expected to make a loss in the first year of trading, it could be a way of getting a tax refund to fund the business in the early stages.

Like all tax reliefs, it is subject to a few catches listed below

  • Farmers can only get it for a max of 3 years
  • Has to be claimed within 2 years of tax year when loss was made
  • Trade has to be taken on a commercial basis
  • If only takes you less than 10 hours a week working on trade, then the loss relief is restricted
  • Loss relief restricted to property developers
  • Losses incurred before you begin to trade cannot be used

Any queries on the above give me a call on 091 763817 or email me at oliver@taxreturnhelp.ie

 

 

 

 

 

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