Hello all
I am considering starting a new self employment, in addition to my employment.
I'm currrently earning £135k through my employment, so I don't have any personal income tax allowance left.
The business idea involves buying a piece of equipment for around £30k. I estimate breaking even in 2.5 years.
If I claim the full cost of the equipment as part of AIA in year 1, I estimate I will have a loss of around £23k through self employment this year, which I understand will be offset against my employment income - meaning that I get some of my annual allowance back, with an associated tax rebate. So I'm thinking that this effectively reduces my start up costs, overall.
If this is correct, do I need to wait until the end of the year to submit a SA to then claim the tax refund. Or can I arrange for the estimated loss to be incorporated into this year's tax code? I've read some conflicting info online and wondered if someone here would be kind enough to clarify please?
Thanks in advance
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