Dull and dreary thread of paying your tax bill!!

Feckthis

Well folks, my dad's convinced he pays too much tax for what he makes. He is not the best at keeping receipts. Does this mean his tax bill will be higher? Could anyone explain how farmers are taxed?
And ways of how to lower your tax bill. Thanks.

rangler1

Feckthis wrote: »

Well folks, my dad's convinced he pays too much tax for what he makes. He is not the best at keeping receipts. Does this mean his tax bill will be higher? Could anyone explain how farmers are taxed?
And ways of how to lower your tax bill. Thanks.

There's some rubbish accountants out there, a friend of mine got a lot of money back after a revenue audit last year....doesn't say much for his accountant,

Bullocks

Feckthis wrote: »

Well folks, my dad's convinced he pays too much tax for what he makes. He is not the best at keeping receipts. Does this mean his tax bill will be higher? Could anyone explain how farmers are taxed?
And ways of how to lower your tax bill. Thanks.

Maybe get a second opinion from another accountant if . If you shoot lakill farm a pm he might be of help

Feckthis

rangler1 wrote: »

There's some rubbish accountants out there, a friend of mine got a lot of money back after a revenue audit last year....doesn't say much for his accountant,

Doesn't help that dad has had bad experience in the past with accountants and reckons that this one he has now (local fella) is as bad. I'm sure there's good accountants out there but he doesn't have a good opinion of them the last few years. He reckons if I want to farm I nearly need to able to do my own accounts.!

kevthegaff

What about IFAC? Any thoughts?

Bullocks

kevthegaff wrote: »

What about IFAC? Any thoughts?

Expensive , I know a few older lads that were with them for years and changed lately for much better value they reckoned

mahoney_j

kevthegaff wrote: »

What about IFAC? Any thoughts?

Find them great Kev,with them since I took over in 09 and no fault .4 bookkeeping visits a year ,great tax advice and never had a shock yet come Octobers preliminary tax payement.very helpful too if u need help going to bank looking for a wedge of money .proably cheaper accountants out there but a cheap accountant ain't nesecrally a good one

frazzledhome

I cannot understand how an accountant can be judged on price. That all in general charge the same.

If you hand in the shoe box and only visit to sign the ROS form price should be the last thing on your mind. You have just handed the most important part of your business to a third party.

We don't need to know the tax codes but we do need to be familiar with where we stand at all times with revenue.

Often have to smile at guys talking about buying land or other large investments and saying that they were surprised that the bank payment was so manageable. They completely forget the tax implications. Tax planning must become a larger part of our business'

Base price

frazzledhome wrote: »

I cannot understand how an accountant can be judged on price. That all in general charge the same.

If you hand in the shoe box and only visit to sign the ROS form price should be the last thing on your mind. You have just handed the most important part of your business to a third party.

We don't need to know the tax codes but we do need to be familiar with where we stand at all times with revenue.

Often have to smile at guys talking about buying land or other large investments and saying that they were surprised that the bank payment was so manageable. They completely forget the tax implications. Tax planning must become a larger part of our business'

Operative word is "business"
Most farmers (not all) that I know do not treat what they do as a business.

Sam Kade

mahoney_j wrote: »

Find them great Kev,with them since I took over in 09 and no fault .4 bookkeeping visits a year ,great tax advice and never had a shock yet come Octobers preliminary tax payement.very helpful too if u need help going to bank looking for a wedge of money .proably cheaper accountants out there but a cheap accountant ain't nesecrally a good one

They're not the same office that I was using so, the complete opposite of yours :mad:

orm0nd

kevthegaff wrote: »

What about IFAC? Any thoughts?

left them about 15 years, found the office I was dealing very un professional , & was never seen on time. ( I think this has changed in recent years , but a lot of people had left at this stage)

Have a brilliant indy now, local girl & farmer's wife , last year's a/c's completed since march , & on her advise this time last year managed to save a lot of tax on same.

Milked out

With fbd in cork, find them good in fairness. Tax is a serious issue alrite, esp if plans or purchases end up stretching out into the following year

Sam Kade

orm0nd wrote: »

left them about 15 years, found the office I was dealing very un professional , & was never seen on time. ( I think this has changed in recent years , but a lot of people had left at this stage)

Have a brilliant indy now, local girl & farmer's wife , last year's a/c's completed since march , & on her advise this time last year managed to save a lot of tax on same.

Believe me it hasn't changed, maybe there are a few good offices but for every good one there's a bad one.

Green farmer

Doctors vary and patients die. Same with accountants . Whatever returns your accountant submits, make sure you can back up your case with solid paperwork.

kevthegaff

Many here in a company?

AP2014

Feckthis wrote: »

Well folks, my dad's convinced he pays too much tax for what he makes. He is not the best at keeping receipts. Does this mean his tax bill will be higher? Could anyone explain how farmers are taxed?
And ways of how to lower your tax bill. Thanks.

A good accountant is essential but doing your own bit is essential as well. All receipts have to be kept, that's the basics.

I keep receipts of everything thing spent and keep an excel sheet updated every few weeks. Takes about 15 minutes to do that if everything is in order. Use phone bills, esb, car purchase etc to lower tax bill.

Only small farm profit here, main income off farm but reckon anyone earning under 20k from farm should be paying very little tax if they know how to manage their taxes which should get as much priority as managing the farm.

Look at pensions, employing son/daughters etc to funnel money away from tax man and back to yourself.

Muckit

frazzledhome wrote: »

I

Often have to smile at guys talking about buying land or other large investments and saying that they were surprised that the bank payment was so manageable. They completely forget the tax implications. Tax planning must become a larger part of our business'

Never bought land so not a clue. Are you saying that you can claim the repayments as an expense against tax? I know that this can't be done on the mortgage repayments on a rental property, but maybe it's different for a farmer.

Buford T. Justice XIX

Muckit wrote: »

Never bought land so not a clue. Are you saying that you can claim the repayments as an expense against tax? I know that this can't be done on the mortgage repayments on a rental property, but maybe it's different for a farmer.

You can claim the interest as an expense but the capital repayments come out of after tax income so will be taxed as income, iirc.

AnFeirmeoir

Buford T. Justice V wrote: »

You can claim the interest as an expense but the capital repayments come out of after tax income so will be taxed as income, iirc.

You can't claim the repayments as an expence, but can't see how you would pay tax on it.... oh you pay it from your profit, so that money is already taxed if thats what you mean?

Buford T. Justice XIX

AnFeirmeoir wrote: »

You can't claim the repayments as an expence, but can't see how you would pay tax on it.... oh you pay it from your profit, so that money is already taxed if thats what you mean?

Well the interest is a farm expense but the capital repayments aren't allowed as a farm expense.

So the capital repayment is effectively added to your income and your actual income and the capital repayments are counted as your taxable income.

That's my understanding of it anyway.

Sacrolyte

Buford T. Justice V wrote: »

Well the interest is a farm expense but the capital repayments aren't allowed as a farm expense.

So the capital repayment is effectively added to your income and your actual income and the capital repayments are counted as your taxable income.

That's my understanding of it anyway.

Correct