Second business allowable expenses

10/02/2018 14:36:10
Hi, searched and searched but came across conflicting answers.

Im a sole trader ( plumber ).
If I have 30K taxable profits can I reduce this to 20K if I set up a totally seperate business.
The business will be ecommerce, purchase of 10k stock / other start up costs etc.
Lastly as im April to March, is it possible to put this 10k into a seperate bank account but not to complete the purchase of stock / other start up costs until my new tax year ?

Many thanks.

Re:Second business allowable expenses

12/02/2018 11:16:35
Hi Mike 1234

The expenses of a business need to be set against the turnover from the business for which they are incurred.
However, if you are not using the cash basis, and your costs exceed your turnover, this will create a loss on one business which can be set sideways against your other income in the year which would include any profit from a separate business.
You claim the costs when the new business starts trading.