Offset trade income against employment

[jedimistress]

Regarding my self assesment tax return.

Can I offset a loss from my trade income (which I have now ceased) against my PAYE income?

I also have losses brought forward from previous years.

[kags]

You can offset the loss against any other income - (including employment taxed under PAYE) for the same tax year in which the loss was made, and/or the previous tax year. In addition, as your business has ceased, you can carry the loss back for 3 tax years to be offset against any trading profits in those years. As you say you have losses brought forward, it sounds unlikely that you will have had any profits to offset them against.

The brought forward losses can only be set against income from the same business, so will be lost.

[jedimistress]

Thanks very much.