A
You can not write off business expenses against PAYE tax but you can carry forward losses to offset against income in future years.
Case I/II losses CAN be offset against other income in the year they occur
Agreed, and any unused losses or losses not so claimed may be carried forward to future years (to be set only against income arising from the same trade)
Thanks, that seems to tally with what I have been told informally from "other sources" and helps make the investment costs a bit easier to swallow. If I am understanding correctly, if I make a €1000 loss in a year, that effectively reduces my taxable income (not the amount I am taxed) by €1000 for that year; as I pay 40% income tax, that means that I would get a tax refund at the end of the year of €400 ..?
Thanks, that seems to tally with what I have been told informally from "other sources" and helps make the investment costs a bit easier to swallow. If I am understanding correctly, if I make a €1000 loss in a year, that effectively reduces my taxable income (not the amount I am taxed) by €1000 for that year; as I pay 40% income tax, that means that I would get a tax refund at the end of the year of €400 ..?
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