# Offsetting self-employed losses against PAYE income



## Randomguy (6 Mar 2011)

I was working in the public sector for most of 2010, but became self-employed in September. I have a total of €100 income as self-employed from Sept to Dec (only getting things up and running), but I did register as self-employed in mid December 2010.

So when I went to claim back my PAYE tax that I had overpaid from the public sector job, I was told by Revenue that for 2010 I can't do it through the PAYE system - I can only claim by filling out my Form 11 through the self-employed section of Revenue, since for some of the year, even if it is only 2 weeks, I was officially self-employed.

I am about to fill it out. And now, basically, I am wondering whether I will be able to put the losses I made as self-employed (expenses of about €5,000 with income of only €100) against the income from the PAYE from earlier in the year, to bring my tax bill down? Or are the two jobs completely separate for tax purposes?

Thanks in advance for any help.


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## mandelbrot (7 Mar 2011)

Short answer, yes you can set the self employed loss against your PAYE income. 

(S.381 TCA 1997 provides the statutory basis for this if you want to go reading up..!)


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## yewlands (16 Mar 2011)

incorrect s381 losses apply to a trade or a profession, as per original poster's second last sentence the two are separate.


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## DB74 (16 Mar 2011)

yewlands said:


> incorrect s381 losses apply to a trade or a profession, as per original poster's second last sentence the two are separate.


 
Self-employed losses can be offset against Sch E income for tax purposes, thereby reducing your taxable income for the year.

They are not taxed separately


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## mandelbrot (16 Mar 2011)

yewlands said:


> incorrect s381 losses apply to a trade or a profession, as per original poster's second last sentence the two are separate.



Incorrect; did you read the section before you posted...


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## kennyb3 (22 Mar 2011)

Im with the 2 above, definitely can offset


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