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bigduckontax, Accountant
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Do the tax deductible expenses you can claim on the

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Do the tax deductible expenses you can claim on the self-employment accounts have to relate to income of the same business?

Hello Paul, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

In a word yes they do. If you are involved in more than one business activity then expenses should offset each individual area and then finally be pooled. Remember that certain capital items [eg a new car for business use] do not qualify as expenses at all, but must go through the Capital Allowance regime. Which have an excellent summary here:

If you have paid employment also then if you make self employed losses these may be used to offset employment or indeed other income or carried forward if desired.

I do hope that my reply has been of assistance.

Customer: replied 2 years ago.
Hi KeithI was asking because I have a client who is self-employed and has paid out a vast amount of expenses such as on travelling and computers for a few projects where he will hopefully receive the income at a later date. He is funding these projects from his SIPP pension income.Therefore, can he offset these expenses against future income but the income will obviously not be shown on his current self-assessment tax return?ThanksPaul

That is no problem so he just declares a loss; it is not uncommon. When the cash comes in it will all come out in the wash as it were next tax year as he uses the brought forward losses to reduce his profits for tax.

Remember that computers are capital allowance items and only that is chargeable against tax, but currently the Annual Investment Allowance (AIA) allows such expenditure to be run off against tax at 100%.

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