Freelancer - Cancelled project. Offset lost time against tax?

Hello,

I am a freelance software developer.

I have previously engaged in a project with a client. They paid me some money upfront and I continued to work on the project.

The project is no longer viable and I wish to exit the agreement. I'm willing to write it off and return the initial payment to keep things simple? This will put me at a loss, due to time spent.

Does the Irish Revenue accommodate this situation in any way? i.e. Allow the loss to be fully/partially used against tax liability?

What are my options on this?

Thank you in advance.

Revenue are only interested in accounting profits/losses etc. No value will be placed on your time. You will have a monetary/accounting loss of actual/real-world costs incurred and depreciation on any assets (computers) you may have used.

This is your only loss (after roughly substituting depreciation for tax-depreciation (capital allowances). This loss can be set against other income in the year or carried forward to offset against next year's income.

The way that revenue allow for unpaid time is by not taxing you on the income you should have made!

Thanks guys.

While this is pretty inconvenient for me, I guess it would be abused to the max if that facility was in place. Consultants would be writing off all their down time.

Thanks for clearing up.

mrs vimes said:

the way that revenue allow for unpaid time is by not taxing you on the income you should have made!

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:d