Luke Chemies

It's probably the two simple questions to ask yourself.

Now, I actually had somebody message me and say, well, I do X, Y, Z. It is my hobby and I lose money doing it.

And why do you do that?

Why do you

do that.

It sounded like a business what they do.

There are businesses that do this and they call it a hobby and they're like, I lose money doing it because I run it at a loss.

If I were the idea, I'd be like, why are you doing that every year if you're losing money doing it?

Often it doesn't make sense to do it.

But what they were wanting to know

is could they offset some of their income with the loss from their, if you could see me, hobby.

My hobby.

But if I'm the IAD, I'd be like, well, hang on.

So what they're saying is a self-employed losing 10 grand a year.

I'll just make something up.

Let's say they're a mechanic, right?

And

it's costing them more to be a mechanic than they're making.

And so they're saying, well, if I make 140 grand a year of PAYE income and I'm paying tax on that, but I'm losing 10 grand of my hobby being a hobby mechanic, can I offset that income?

So can I only pay tax on 130, not 140?