How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Anne Your Own Question
Anne, Master Tax Preparer
Category: Tax
Satisfied Customers: 2336
Experience:  Enrolled Agent with 25 Years Experience specializing Individual and Small Businesses
Type Your Tax Question Here...
Anne is online now
A new question is answered every 9 seconds

I have a successful self employment and pay the tax due. I

Resolved Question:

I have a successful self employment and pay the tax due. I started a company separate from this with a friend in the 2007 2008 tax year and I have spent about £6,000, initially thinking it would be a Director's loan. It is unlikely this company will ever obtain any income, so my question is, "am I able to set the £6,000 expenditure against my self-employed income or not? My total self employment income is just over £30,000 in the 2007 2008 tax year.
Submitted: 8 years ago.
Category: Tax
Expert:  Anne replied 8 years ago.



Thank you for using justanswer. For all practical purposes, your answer is no. Even if your current business was closely related in nature to the business that you invested in and that never really got off the ground, you would still have to be able to document that it was the business, not you personally, that made the business investment and making this type of an investment would be a normal part of your business's activities.


US tax law allows a person to take either a personal bad debt or a business bad debt in these types of situations, assuming that it meets all of the qualifiers. I notice you mention your money in terms of pounds, so I'm pretty sure you're not in the US.


I would suggest that you find a professional tax pro, Enrolled Agent, or CPA in your home town and let them give you some guidance on how best to recoup what ever % you can based on the tax laws of where you live.


I hope this helps


If you have found my answer helpful, please click the green "accept" button as it is the only way we get paid.


Positive feedback and bonuses are always appreciated.

Anne and 2 other Tax Specialists are ready to help you