Farm Accounts query

tomnjerry

A Friend of mine has being receiving a single Farm payment the last few years,he had little or no farm expenses and no other farm income but the Single Farm Payment. . He only properly started farming on a small scale in 2014. He has never made a tax return. I told him on a number or occasions to go see an accountant to get his affairs in order..
would he get away with with just submitting a Tax return for 2014 and say noting about previous years???

J.O. Farmer

He's better see an accountant. I don't think anyone can say for sure what the revenue will do. If he makes a 2014 return the revenue might leave it but if they come to him they'll look for years back.

einn32

I'm not an accountant but I think they will probably shine a light on him once he submits the 2014 accounts. It's income he never declared which is on record he received. It would be good idea to go to a reputable accountant.

ihatewinter

If he has all the receipts and income from previous years, the accountant will be able to calculate his income. The Revenue will accept a lump sum to cover previous years and this will help in the future as they may come down heavy on him for not declaring taxable income

lakill Farm

tomnjerry wrote: »

A Friend of mine has being receiving a single Farm payment the last few years,he had little or no farm expenses and no other farm income but the Single Farm Payment. . He only properly started farming on a small scale in 2014. He has never made a tax return. I told him on a number or occasions to go see an accountant to get his affairs in order..
would he get away with with just submitting a Tax return for 2014 and say noting about previous years???

appoint an accountant or agent

Let the agent talk to revenue, Its common enough occurrence. I myself would come across at least 6 examples of this each year.

Sami23

Quick question, can you put your house insurance down as an expense on your farm accounts for tax return ?

Sami23

Sami23 wrote: »

Quick question, can you put your house insurance down as an expense on your farm accounts for tax return ?

Anyone ?

Muckit

Definitely not if you live off farm. You would have to check it out with an accountant if you own and live in a house on the farm. I suppose it is a 'farmhouse.'

Or better still ring up your local revenue office. Will only cost you the price of phone call and you don't have to give any of your personal details.

Sami23

Muckit wrote: »

Definitely not if you live off farm. You would have to check it out with an accountant if you own and live in a house on the farm. I suppose it is a 'farmhouse.'

Or better still ring up your local revenue office. Will only cost you the price of phone call and you don't have to give any of your personal details.

Yes I live in the house on the farm adjacent to farmyard.

lakill Farm

Sami23 wrote: »

Yes I live in the house on the farm adjacent to farmyard.

is it a "farm peril" policy

Sami23

lakill Farm wrote: »

is it a "farm peril" policy

No just regular house insurance with 123.ie

Nettleman

could be tricky, and may cause problems down the road with Principle private residence relief if the house is ever sold, where you have treated some of the house costs as business costs.

lakill Farm

Sami23 wrote: »

No just regular house insurance with 123.ie

have you a "home office" at home?

Sami23

lakill Farm wrote: »

have you a "home office" at home?

Well I do all my farm paperwork and keep my records up to date in the house if that's what you mean ?

lakill Farm

Sami23 wrote: »

Well I do all my farm paperwork and keep my records up to date in the house if that's what you mean ?

well then cant you include a portion of the insurance, Light and heat, landline & broadband etc

Sami23

lakill Farm wrote: »

well then cant you include a portion of the insurance, Light and heat, landline & broadband etc

That's what I was hoping ud say. I had the others included already. Is it 2/3 you usually include for these and also for car expenses ?

lakill Farm

Sami23 wrote: »

That's what I was hoping ud say. I had the others included already. Is it 2/3 you usually include for these and also for car expenses ?

you wount get away with 2/3. id suggest 1/3 maybe for "office expenses"

car expenses are like the rest . what you can justify

Sami23

lakill Farm wrote: »

you wount get away with 2/3. id suggest 1/3 maybe for "office expenses"

car expenses are like the rest . what you can justify

Thanks for the advice lakill