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Should i VAT register

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    #32
    lakill Farm
    Registered Users Posts: 4,735 ✭✭✭lakill Farm


    no claim capital allowances of value of tractor /8 (8years at 12.5%)

    Depreciate tractor at €500 per year. No profit realised on disposal of asset

    (depreciation is on a accountants expense not a real expense thus its 100% add back to net profit on accounts when calculating income tax)


    Tipp Man wrote: »
    So basically what your saying to me is that we should be claiming only 500 per annum on Cap Allowances on the tractor (based on numbers above) if we don't want to incur a profit on disposal - which is approx €250 tax saving

    Only care about tax position - don't really care if tractor is worth €1 or €100k on the books


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    #33
    case885
    Registered Users Posts: 2,536 ✭✭✭case885


    If it is buying a second hand tractor once off why not ask someone you know who is vat registered and get them to put it in their name, get the vat back without having to register.


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    #34
    Farmer Pudsey
    Registered Users Posts: 6,326 ✭✭✭Farmer Pudsey


    case885 wrote: »
    If it is buying a second hand tractor once off why not ask someone you know who is vat registered and get them to put it in their name, get the vat back without having to register.

    Stupid Idea


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    #35
    case885
    Registered Users Posts: 2,536 ✭✭✭case885


    Farmer Pudsey wrote: »
    Stupid Idea

    Why is it such a bad idea?


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    #36
    LivInt20
    Registered Users Posts: 491 ✭✭LivInt20


    case885 wrote: »
    If it is buying a second hand tractor once off why not ask someone you know who is vat registered and get them to put it in their name, get the vat back without having to register.

    Illegal

    VAT fraud.


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    #37
    Farmer Pudsey
    Registered Users Posts: 6,326 ✭✭✭Farmer Pudsey


    case885 wrote: »
    If it is buying a second hand tractor once off why not ask someone you know who is vat registered and get them to put it in their name, get the vat back without having to register.
    case885 wrote: »
    Why is it such a bad idea?

    First what you suggest is fraud and tax evasion, even if it were legal how can the contractor deal with it in his tax accounts, then you cannot claim the capital allowances attached to it. When you decide to put it in your name you have to pay vat anyway. From now on a lot of second hand farmer owned tractors will not be vat rated anyway. And as well what if the contractor goes bust your tractor goes with him.

    As I posted earlier it is a stupid Idea sorry for being so harsh.


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