Employment and self-employment what is the income total?

[pasok1000]

I am in Floyd and salaries for example 30,000. I'm also self-employed and about 15,000 on investing into building up self-employed company. I earned 1100 from the self-employed but lost 14,000 so does it mean that my income for the year is 30,000-14,000 = 16,000

No, it’s 31100

That depends on what you spent the £15k on and whether the self employed business will be considered trading (run with a view to profit) amongst other things.

Do you have 15,000 was spent on building up the company the premises,

I just need to fill in the form to say what is my income for the year and I'm not sure whether I should say 31,000 or 16,000 because I actually do not have 31,000?

You need to put 31100 as earnings but there will be a section for profit/loss where you put the 15K loss.

'The form'?

What form?

But that’s because you took the decision to spend £15000 of your employed income on setting up a business. It was a spending decision just like if you’d spent it on a new car and then crashed it.

your income was 31100 - 30k from employment and £1100 from a business which didn’t perform well

I need to declare how much income I have for the school that my daughter is applying to

You can make a loss on setting up a self employed business, this is reasonably common. But it depends why you are trying to deduct that from your employment earnings?

So what does your tax return say?

What does Schedule D self employment income is declaration?

This is on the school form

Are you in the UK?

’the form’ would be a self assessment tax form.

have you set up your self employment as a company (and is it a limited company of which you are director?)

if you paid yourself 1100 from the business but used 15000 of your own money then you didn’t actually pay yourself anything. You have given the business a directors loan of 13900 that you can take back out the business when it’s making a profit (assuming everything you spent is a legitimate business expense).

you still earnt 30,000 that you are liable for tax on but if you’re in the uk isn’t this deducted at source?

Ring HMRC, they will talk you through at you need to do. You would do well go get professional advice, this is a sizable capital outlay and likely to be acconted for over quite a few year. Are you registered as self employed already?

Sorry cross posted. 30,000. Your business is operating at a loss so isn’t income for you yet.

You don't get to deduct what you invested into your business from your £30,000 PAYE income just because you don't have it any more. That would be like me saying they I have no income because I spent my salary on paying my mortgage and bills

My word there’s some inaccurate advice on here.
Sideways loss relief is absolutely a thing for self employed businesses and the OP may be able to offset genuine losses against her employment income for the purpose of establishing her taxable income.
However the devil is in the detail and a whole host of further information is needed before we could possibly know what figure should go on a school application form; it is not necessarily the same as a tax return.
OP, you need to take some advice from a real person. This is not a question you can ask the internet.

I'm still thinking what could justify running business at a loss?

well there are losses and there are "losses"..

There is not enough information to answer this

Speak to an accountant

You invested in a business, you don’t say what the money was spent on so it might not be a loss but capital

Crikey there's some shocking advice on this thread! If you are self employed, you can offset any losses from that self employment against employed income, providing they are allowable business expenses. This differs if your self employment is actually a Limited company and therefore you are an employee of that company. It sounds like you are quite out of your depth here OP so you need to consult an accountant as mistakes can be very costly at a later date.

yes you can offset current year losses from trading against current year income

(in your tax return)

however, did you actually make a tax loss of -15k? (well £1100 minus costs) - that depends on what the costs were and whether allowed for tax. never mind the school question, you need to know howmuch tax to pay and whether you are a profitable business first!

A lot of new businesses don't break even or make a profit for years. Especially as your money has gone on premises. I have aside hustle I spent 10k on this time last year ( a franchise) I hope to break even next year but at the minute that's not the case, I am getting about £800 a month from it but there are a lot of costs so no profit anytime soon.

For a school bursary application I would give more information rather than less. Tell them about your employed income and your investment in self-employment, and how you reasonably expect that business to progress in the next year. If there isn't enough room to explain that on the form, I would phone the school and ask to speak to the bursar's office directly then ask for guidance as to what to put on the form.

Hope your business does work out well for you in the near future.

The self employed profit would be the figure that you declare on the form, not the turnover. You need to engage an accountant to work the figures out for you for your tax return to find your net profit or loss.

The costs might not be expenses, they might be capital and as such wouldn't be allowable against your income.

If you have made a loss, I don't know if it could be set against your employment income for the purposes of the school form you are completing. It depends on exactly what information they are asking for.