Joint assessment with one PAYE, one sole trader

Hello,

Apologies in advance if this is covered in other posts, but I cannot make head nor tail of all the available information to work out whether I can do the following.

We are a married and jointly assessed unit. Spouse is PAYE and I have recently become unemployed. I would like to setup as a sole trader now. Income in the first year will be very small, in the few hundreds I think. However outlay for accountant returns, personal PRSI payments and computer equipment would probably run to at least 2500 or more.

Can I put all my expenses as above against my spouses PAYE tax at year end? Can I claim back amounts up to all their tax paid, or a percentage, or how does it work? I will also retain my PAYE credit and be able to expense small amounts of home business costs?
My main motivation is that if I am going to start a business(better than being unemployed!) understanding what is allowed so as not to impact our delicate financial situation.
Thanks in advance.

You pay tax on your profit after deducting business expenses, 12.5% capital allowances on equipment, motor vehicles (less personal deduction). If you have a loss then that can be set sideways against your spouses income.

This will result in a refund of income tax at 20% or 41% depending on how much tax they have paid. You do not get a PAYE cr if self employed.

So, if I make 600. And then deduct capital equipment@12.5%, down to say 400.
I then pay accountant for the year and all hosting costs and I am at minus figures.
Can I then allocate that loss figure against the PAYE tax, and get it all or just 41% of it back?

If the loss is €500 and your spouse is paying tax at 41% then you will get €205, but you should keep up your PRSI contributions that's €253, so you will owe a bit.

Thanks Joe.