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Where Taxpayers and Advisers Meet

Employed and self employed

Nomis
Posts: 1
Joined: Fri Sep 14, 2018 10:26 am

Employed and self employed

Postby Nomis » Fri Sep 14, 2018 10:42 am

Hi,
Looking for some advice please, if anyone can help.

A relative is in part time paid employment, earning circa £18k a year. They started their own online business about 18 months ago selling clothing via eBay and more recently via their own website.

So far they have not taken any money out of the business, but they have invested circa £6k on both assets (computer / office furniture etc) and stock. Some of the investment money is their own and some was a gift / loan from a family member.

They have sold several hundred items over the 18 month period but always used the money to reinvest in more stock. They have not taken any wage or other money out of the business.

They are about to leave their paid employment and concentrate on the online business full time.

My question is; will they be entitled to claim back any of the PAYE tax / NI that they have paid on their paid employment over the last 18 months as they have invested in their own business? Is there some way of off-setting the PAYE contributions against the investment?

Only other factor is that they have been on paid sick leave from their employment various times over the last 18 months due to medical issues. Not sure if this affects anything?

Hope this makes sense, as you can probably guess I am new to this!

Regards

Nomis

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