Offset business loss against Income tax?

R

roadrunner

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A friend of mine started a business franchise last year but was making losses so just ceased trading. He made losses of €4K - can he offset this against his income tax paid?
Also what form does he need to send back to revenue - is it form 11?
 
Losses in trade can be set against other income of the same year. Normally the self-assessment returns procedure would be followed TR1 to register for self-assessment, file Forms 11 for the years concerned once registered. Then de-registration. The losses would be allowable at the taxpayers marginal rate. Self-assessment means that all records must be available for possible Revenue Audit and must be retained for the statutory perriod of 6 years. ( relevant legislation sections 381-390 TCA 1997 ) . It is also important to ensure that all other taxes such as VAT have been covered if relevant to the case.
 
Graham_07 said:
Losses in trade can be set against other income of the same year. Normally the self-assessment returns procedure would be followed TR1 to register for self-assessment, file Forms 11 for the years concerned once registered. Then de-registration. The losses would be allowable at the taxpayers marginal rate. Self-assessment means that all records must be available for possible Revenue Audit and must be retained for the statutory perriod of 6 years. ( relevant legislation sections 381-390 TCA 1997 ) . It is also important to ensure that all other taxes such as VAT have been covered if relevant to the case.
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thanks for that Graham - maybe your not such a bad guy afterall!
 
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