Income tax on farm social welfare?

Qualitymark

Just had an email from a friend living on a remote farm. For various reasons he sent his tax results in early. He got an answer that apparently says there's now a 20% tax on social welfare payments - no appeal. Can he be right? (This will mean his very bright daughter can't go to university unless she emigrates…)

epfff

Qualitymark wrote: »

Just had an email from a friend living on a remote farm. For various reasons he sent his tax results in early. He got an answer that apparently says there's now a 20% tax on social welfare payments - no appeal. Can he be right? (This will mean his very bright daughter can't go to university unless she emigrates…)

See a tax expert
As far as I know their is tax on some social welfare if your combined income enters the net
Why should that income be treated different to any other
But I would find it strange that he gets social welfare that is taxable and also in the tax net
If his income is so high that their is a Tax liability why can't he send his kid to college
Getting pied off with people that think society owe them everything and they don't have to financial manage anything for themselves
We could all overspend and look for someine else to pick up tab

lakill Farm

farm assist is exempt from income tax

unemployment benefit is taxable , however the first €13 weekly isnt taxable

FIS is also exempt from tax (Family income supplement)

Qualitymark

This seems to be something new - he sends in the tax returns every year.

Sam Kade

Qualitymark wrote: »

This seems to be something new - he sends in the tax returns every year.

Does he use an accountant or does he send it in himself?

Qualitymark

Far from accountancy income this farm is!

Sam Kade

Qualitymark wrote: »

Far from accountancy income this farm is!

Plenty farmers making no income and use accountants, so he files his own accounts?

Reggie.

Qualitymark wrote: »

Far from accountancy income this farm is!

I use an accountant and only have 12 head. Better to leave that work for someone that knows what they are doing

lakill Farm

Reggie. wrote: »

I use an accountant and only have 12 head. Better to leave that work for someone that knows what they are doing

do you think using an accountant is of benefit to you?

Reggie.

lakill Farm wrote: »

do you think using an accountant is of benefit to you?

Do you really want to go there

Green farmer

Paying an accountant might be the cheapest thing you'd ever do. Just find somebody who's reasonably priced, fair and knows what their doing. Better safe then sorry.

lakill Farm

Reggie. wrote: »

Do you really want to go there

you chance now to name your amazing accountants


*** Disclaimer*** I have never meet Reggie or know him

Mac Taylor

lakill Farm wrote: »

you chance now to name your amazing accountants


*** Disclaimer*** I have never meet Reggie or know him

Accountants and Lawyers are the devils agents.....sorry Lakill!!!!

Reggie.

lakill Farm wrote: »

you chance now to name your amazing accountants


*** Disclaimer*** I have never meet Reggie or know him

If only that were true




:D:D

lakill Farm

Mac Taylor wrote: »

Accountants and Lawyers are the devils agents.....sorry Lakill!!!!

not use all I don't think

john8984

The farm assist social welfare payment is on its own exempt from tax but combined with other income such as other farm income it is all added together and is then taxable if the combined amount reaches the taxable level.

Qualitymark

No, this is new; they've been sending in the same basic returns for years, with few changes.

moy83

Qualitymark wrote: »

No, this is new; they've been sending in the same basic returns for years, with few changes.

Did the revenue send back his return , telling him about the extra liability or how did he find it out ?
I'm just wondering maybe was he just lucky in previous years that they didnt notice he wasnt declaring the social welfare .

Qualitymark

moy83 wrote: »

Did the revenue send back his return , telling him about the extra liability or how did he find it out ?

Yes.

moy83

Qualitymark wrote: »

Yes.

If they missed it other years and its his mistake it could be a costly one . I know its been said already but I would be looking for a good accountant to check this year's and the last few years accounts .
Tax is something that you can't get away from or leave on the long finger unfortunately

mayota

moy83 wrote: »

If they missed it other years and its his mistake it could be a costly one . I know its been said already but I would be looking for a good accountant to check this year's and the last few years accounts .
Tax is something that you can't get away from or leave on the long finger unfortunately

Death and taxes will get us all.

Reggie.

mayota wrote: »

Death and taxes will get us all.

The only things that are certain in life

viztopia

The revenue and social welfare have only recently started to share information whereby the social May inform revenue of taxable payments made to people that should be included in fax returns so it may be that nothing has changed in terms of incone rather the revenue may only now be aware if the other incone. Be careful as they could go back 6 years and amend assessments

Qualitymark wrote: »

Yes.

Qualitymark

Nope, these are people who have always made a completely frank statement of every cent that comes into and goes out of the household. No change.

Qualitymark

Seems to have been Farm Assist they say is now taxed at 20%.

lakill Farm

Qualitymark wrote: »

Seems to have been Farm Assist they say is now taxed at 20%.

that's incorrect.

Just call revenue and ask them to amend. either the taxable person indicated the Farm assist was taxable by mistake or revenue made a mistake

Qualitymark

lakill Farm wrote: »

that's incorrect.

Just call revenue and ask them to amend. either the taxable person indicated the Farm assist was taxable by mistake or revenue made a mistake

He's going to call.

Sam Kade

mayota wrote: »

Death and taxes will get us all.

Even when you are dead they will still tax you, not that it won't make any difference to you.