A
alfista
Guest
Hello all, only found this forum today but what I've seen of it so far it is excellent! I hope someone here can either answer my question or point me in the right direction of who I need to be talking to.
I am working as a permanent PAYE employee but have an idea for a business; I estimate that it's going to take about a year of part time work to do the R&D required and I don't want to give up my job until I'm sure that the business idea really is worth pursuing. In the meantime I am planning to set up as a sole trader whilst continuing to work for my current employer (there is no conflict of interest between my business idea and their business); as there is a lot of R&D involved, there will be expenditure for at least a year before there is any real income: the business will be losing money. Can this loss be offset against the income tax I am paying on my permanent employment? Are there any tax traps I should be wary of? Is there a better way of arranging things bearing in mind that I don't really want to get into the complexities of running a limited company before I know that I have a viable idea.
Thanks in advance for your help
I am working as a permanent PAYE employee but have an idea for a business; I estimate that it's going to take about a year of part time work to do the R&D required and I don't want to give up my job until I'm sure that the business idea really is worth pursuing. In the meantime I am planning to set up as a sole trader whilst continuing to work for my current employer (there is no conflict of interest between my business idea and their business); as there is a lot of R&D involved, there will be expenditure for at least a year before there is any real income: the business will be losing money. Can this loss be offset against the income tax I am paying on my permanent employment? Are there any tax traps I should be wary of? Is there a better way of arranging things bearing in mind that I don't really want to get into the complexities of running a limited company before I know that I have a viable idea.
Thanks in advance for your help