Transitioning my Vocations, the Tax Implications?

TommyMacca

Hello

I'm self employed.

I worked on two projects within the financial year of 2015.

Project A generated a Sales Revenue of €10,000.
Project B generated a Sales Revenue of €0.

Project B is unfinished and will make money in 2016.

Project A and Project B are very different. For the sake of the illustration, Project A is being a plumber and Project B is being a photographer.

Project B incurred costs of €5000. Mainly to purchase new equipment.

Can I legitimately claim/offset this €5000 worth of purchases despite Project B making no money?

From my point of view I had sales of €10,000 but purchases of €5000.
Will the tax office see it this way too?

Any clarification is appreciated.

Cheers

exaisle

With all due respect, you should go and engage an accountant to deal with this.

Lockedout2

I agree contact an accountant.

You have to separate trades but the purchase of equipment is not a deductible expense in either.

TommyMacca

@Lockedout2 Thanks for replying.

So I need to submit two separate sets of accounts, one for each trade?

I thought if I purchase a piece of equipment I could write it off over a reasonable period of time? e.g. a laser printer over say 4 years etc.

CIARAN_BOYLE

TommyMacca wrote: »

@Lockedout2 Thanks for replying.

So I need to submit two separate sets of accounts, one for each trade?

I thought if I purchase a piece of equipment I could write it off over a reasonable period of time? e.g. a laser printer over say 4 years etc.

capital allowances is fixed at 8 years.