Form11

If as a sole trader I made a loss and used money I made from a paye job to subsidise my buisness do I have to put on the form 11 that I put this money into the buisness?


Is it possible to offset these losses against tax paid in paye job?

When you say "subsidised the business" you mean paid necessary trading expenses for your sole trader enterprise out of money earned in Paye job?

A loss on the sole trader business can be used to offset taxes paid in Paye. In the "self-employed income" section of the Form 11 there is a section headed Losses, which asks if you wish to claim under S381 to offset losses of the trade against other income. Just put the amount of the loss in there.

There is also a section on form 11 where you have to enter details of the business's capital account and these funds would have to be entered here as well.

Where the money comes from doesn't necessarily determin whether there are profit implications - for example you could be using your paye salary to pay down business loans which payments would not be tax-deductible.

Talk to an accountant as a mistake here could be costly