2015 Tax How are you fixed?

frazzledhome

With all the talk on the "milk price" thread of bad price continuing and super levy to be paid I'm wondering how are people going to manage this yrs tax bill. We've had a record price last year and tax is going to be an issue. It's the one thing that needs to be dealt with.

Do you wait till ROS form arrives to be signed and then panic?

Do you have your accounts completed and know where you stand?

Do you have a taxation plan for this year and the next few years?

keep going

frazzledhome wrote: »

With all the talk on the "milk price" thread of bad price continuing and super levy to be paid I'm wondering how are people going to manage this yrs tax bill. We've had a record price last year and tax is going to be an issue. It's the one thing that needs to be dealt with.

Do you wait till ROS form arrives to be signed and then panic?

Do you have your accounts completed and know where you stand?

Do you have a taxation plan for this year and the next few years?

Ah feck ye its sunday and we were depressed already after the football, ac ounts done bill hasnt come but we have a fair idea what it will be and we have made changes for tax going foward

Sam Kade

I'm in between changing accountants, it's going on since late April and to be honest the new accountant is as bad as the old accountant at communicating :mad:

td5man

Sam Kade wrote: »

I'm in between changing accountants, it's going on since late April and to be honest the new accountant is as bad as the old accountant at communicating :mad:

Know what you mean. ;-)

mahoney_j

frazzledhome wrote: »

With all the talk on the "milk price" thread of bad price continuing and super levy to be paid I'm wondering how are people going to manage this yrs tax bill. We've had a record price last year and tax is going to be an issue. It's the one thing that needs to be dealt with.

Do you wait till ROS form arrives to be signed and then panic?

Do you have your accounts completed and know where you stand?

Do you have a taxation plan for this year and the next few years?

2014 accounts done ,refund due .developing farm so lots of capital allowances.no levy to deal with either .presuming ur farming as ltd company

Deepsouthwest

mahoney_j wrote: »

2014 accounts done ,refund due .developing farm so lots of capital allowances.no levy to deal with either .presuming ur farming as ltd company

How can u be due a refund after last yr? Crazy amount of cap ex done here in the last number of yrs, but always have to give them a fine lump as well,I expect this yr will be no different.

mahoney_j

Deepsouthwest wrote: »

How can u be due a refund after last yr? Crazy amount of cap ex done here in the last number of yrs, but always have to give them a fine lump as well,I expect this yr will be no different.

Paid too much in preliminary tax ,last year of 100%!stockbrelief as well .refund will be small .roughly 500 euro

frazzledhome

mahoney_j wrote: »

Paid too much in preliminary tax ,last year of 100%!stockbrelief as well .refund will be small .roughly 500 euro

God be with the days when they used to pay 8-10% interest. It was a great way to make a few bob

mf240

Accounts done. Bit to pay. Plus prelim for next year.

Using income averaging so the clusterfcuk that was 2012 is keeping things down .

Usc is an awfull b@stard of a yoke .

whelan2

good chunk of sfp will pay my tax bill.

mahoney_j

frazzledhome wrote: »

God be with the days when they used to pay 8-10% interest. It was a great way to make a few bob

8/10% interest on an overpayment ??.only a young lad and was paye till 31/12/09!!

Timmaay

Got a surprise with a decent refund on mine also! From a cash flow point of view, the sfp comes in at a decent time I'll admit ha. Usually have it all done in around now, we'll get the payment setup for November and set a reminder to make sure there is enough in the bank to cover it a few days beforehand. I'm using ifac, not the cheapest, but they do the job well enough, certainly not worth the hassle of changing.

Timmaay

mahoney_j wrote: »

8/10% interest on an overpayment ??.only a young lad and was paye till 31/12/09!!

Hmmm never knew that happened either! Have got crippled with preliminary tax when we aren't expecting it in the past, it's a fair kick in the teeth having a good few k tided up for the year when cash is tight anyways.

mahoney_j

Timmaay wrote: »

Got a surprise with a decent refund on mine also! From a cash flow point of view, the sfp comes in at a decent time I'll admit ha. Usually have it all done in around now, we'll get the payment setup for November and set a reminder to make sure there is enough in the bank to cover it a few days beforehand. I'm using ifac, not the cheapest, but they do the job well enough, certainly not worth the hassle of changing.

Ifac here as well ,certainly not cheapest accountant out there but I find them and advice re tax and accounts very good .could easily get cheaper one but could I get a better one...,,

djmc

If you purchased milk quota in the past can it now be written off against tax since it's gone

Sam Kade

mahoney_j wrote: »

Ifac here as well ,certainly not cheapest accountant out there but I find them and advice re tax and accounts very good .could easily get cheaper one but could I get a better one...,,

I was with IFAC expensive and unlike you very bad service.

keep going

djmc wrote: »

If you purchased milk quota in the past can it now be written off against tax since it's gone

Almost certain no unless you sold it

RightTurnClyde

djmc wrote: »

If you purchased milk quota in the past can it now be written off against tax since it's gone

Too late now.
All the quota was bought here and written off against tax over the last few years.
(That quota thing was the best money I ever spent 😄)

RightTurnClyde

frazzledhome wrote: »

With all the talk on the "milk price" thread of bad price continuing and super levy to be paid I'm wondering how are people going to manage this yrs tax bill. We've had a record price last year and tax is going to be an issue. It's the one thing that needs to be dealt with.

Do you wait till ROS form arrives to be signed and then panic?

Do you have your accounts completed and know where you stand?

Do you have a taxation plan for this year and the next few years?

Tax year here is from 1/04 ->31/03. Works well for "load averaging"
Moved to corp tax last year as the last of the CapEx allowances were used up, and no big plans fro anymore.
Preliminary accounts done up, amount will be very small

Sacrolyte

mahoney_j wrote: »

2014 accounts done ,refund due .developing farm so lots of capital allowances.no levy to deal with either .presuming ur farming as ltd company

Right now. I hate ya

mahoney_j

Sacrolyte wrote: »

Right now. I hate ya

Bank of Ireland finance own my ass for next 10 years or so though!!!,still better them and develop farm than Mr collector general....

stretch film

Anyone get clarity on writing off any quota bought less than seven years. Was told it should all be written off against 14 as this is final chance.
Also this mans info was that all superlevy needs to go against 14 as opposed to letting 1/4 go against 15 .
Not a barstool accountant btw

frazzledhome

mahoney_j wrote: »

2014 accounts done ,refund due .developing farm so lots of capital allowances.no levy to deal with either .presuming ur farming as ltd company

Farming some thing along those lines

Farmer Pudsey

2014 accounts done and dusted since June. Had the paperwork in since early April, was hearing nothing so rang late May and got it sorted. Like many a poor beef finisher not enough profit to pay tax on, with capital allowances etc got a small bit of an tax refund from our PAYE Tax.

They are very fast to pay it out fair play. it was spit between us both as we are jointly acessed. One was going into the farm account, the other was a cheque. The cheque arrived first.

Deepsouthwest

Am I the only fool here who's paying out a big lump every yr? It's costing me the bones of €300/wk, if I put my wife's tax on top of that there's over €500/wk going out of my house.

Milked out

14 Accounts done, paid a fair bit of preliminary last year. Will get in a shot of 15 stuff together prior to oct and do up an estimate to reduce the preliminary for next year. We were on income averaging can exit this year so will c after x chat with accountant wether to stay in. Have extra capital allowance now also

Farmer Pudsey

Deepsouthwest wrote: »

Am I the only fool here who's paying out a big lump every yr? It's costing me the bones of €300/wk, if I put my wife's tax on top of that there's over €500/wk going out of my house.

That is nearly as bad as being a PAYE worker.

Bullocks

Deepsouthwest wrote: »

Am I the only fool here who's paying out a big lump every yr? It's costing me the bones of €300/wk, if I put my wife's tax on top of that there's over €500/wk going out of my house.

Don't think you're a fool , if you're drawing down plenty of money you'll be paying tax . Investment in the farm has to be done and will cancel out tax but it's not all about that either when you need cash in the claw every week . 3 pairs of shoes for kids bought here the last day and €150 gone not to mention all the rest

Timmaay

At least the kids shoes are vat free lol!

Timmaay

Actually DSW, if your drawing big amounts that's when the company route makes more sense, have you or your accountant looked into it?

Bullocks

Timmaay wrote: »

At least the kids shoes are vat free lol!

Haha, they would want be at the rate they are growing

frazzledhome

Deepsouthwest wrote: »

Am I the only fool here who's paying out a big lump every yr? It's costing me the bones of €300/wk, if I put my wife's tax on top of that there's over €500/wk going out of my house.

No idea about how "foolish" you are

If your income and profit is high you'll pay a fair whack and its the drawings that crucify us all.

The figure you mentioned doesn't sound excessive.

Midfield9

Over 600 a week last year between the father and myself. Have this years stuff ready. Nearly afraid to hand them in. Obviously making a profit yet the bank accouint never looks like it. Tax bill really takes the joy out of farming lately.

Stationmaster

A lot of lads would have paid a bit extra preliminary tax last november as they knew 14 figures would be high. Most of my farmers accounts done here - I find they great for getting stuff in because most of them are always mad to know how the year went! Most other trades are leaving it till October to drop stuff in.

keep going

Timmaay wrote: »

Actually DSW, if your drawing big amounts that's when the company route makes more sense, have you or your accountant looked into it?

Noy sure about that, my reading is the company pays best if you can live within the 20 %tax rates and retain the the rest of the profits within the company, open to correction

Buford T. Justice XIX

Deepsouthwest wrote: »

Am I the only fool here who's paying out a big lump every yr? It's costing me the bones of €300/wk, if I put my wife's tax on top of that there's over €500/wk going out of my house.

Similar here:o


But I have repayments on building my yard from scratch, with capital allowances gone a good while now so only the interest is allowable. So the repayments are counted as income and taxed at a marginal rate of 57%:(

Nearly finished that loan now though.

Brown Podzol

€300 per cow here. Takes all direct payments, sfp, reps or glass. What pisses me off is that when the country sees a bit of daylight financially the civil servants make off with it in the form of pay restoration and reversal of pension contributions. Self employed getting the ****ty end of the stick, starting paying tax at €8250 v paye starting at €€16500.

rangler1

Midfield9 wrote: »

Over 600 a week last year between the father and myself. Have this years stuff ready. Nearly afraid to hand them in. Obviously making a profit yet the bank accouint never looks like it. Tax bill really takes the joy out of farming lately.

Since the recession hit, there are loads out there that'd love to be in your position.
I presume you've gone down the company route.... a lot of experts maintain that it's not a good idea for most farmers

Sacrolyte

Accountant tells me I'm looking at close to 40k. Holy sh1t. I feel like I haven't a pot to piss in. I'm told my drawings are too high to go company route. Due mainly to repayments on cap ex that have the allowances used up and some legacy stuff.i know this probably sounds wrong but sometimes I see guys drawing the dole and doing the odd nixer and havin a few pints in the middle of the day while havin a few punts on the gg's and I feel a bit envious.

frazzledhome

Sacrolyte wrote: »

Accountant tells me I'm looking at close to 40k. Holy sh1t. I feel like I haven't a pot to piss in. I'm told my drawings are too high to go company route. Due mainly to repayments on cap ex that have the allowances used up and some legacy stuff.i know this probably sounds wrong but sometimes I see guys drawing the dole and doing the odd nixer and havin a few pints in the middle of the day while havin a few punts on the gg's and I feel a bit envious.

I had an interesting encounter after milking yesterday evening. Went to the local to get fags and the usual suspects were lined up drinking and more power to them. They are all there again today as they're members of a "Monday" club iykwim.

I was in overalls and wellies and their spokesman pipes up about how much money I have and what a phuckin eejit I am to be working on a Sun evening.

I agreed I was a fool and that 50+% of my days work was going to keep him in drink!! I wasn't offered a pint

Timmaay

Buford T. Justice V wrote: »

Similar here:o


But I have repayments on building my yard from scratch, with capital allowances gone a good while now so only the interest is allowable. So the repayments are counted as income and taxed at a marginal rate of 57%:(

Nearly finished that loan now though.

How much are capital allowances?

Buford T. Justice XIX

Timmaay wrote: »

How much are capital allowances?

12.5% I think? Or 15% for 6 years and 10% the last?

They've been gone so long I've forgotten.

Bullocks

frazzledhome wrote: »

I had an interesting encounter after milking yesterday evening. Went to the local to get fags and the usual suspects were lined up drinking and more power to them. They are all there again today as they're members of a "Monday" club iykwim.

I was in overalls and wellies and their spokesman pipes up about how much money I have and what a phuckin eejit I am to be working on a Sun evening.

I agreed I was a fool and that 50+% of my days work was going to keep him in drink!! I wasn't offered a pint

Them Monday club boys have to be admired for their bookkeeping skills in all fairness . How the feck can they drag the weeks drink and fags out of the dole is deadly , tactical use of subs and the odd lucky game of 25 keeps them going I suppose .

Sacrolyte

Buford T. Justice V wrote: »

12.5% I think? Or 15% for 6 years and 10% the last?

They've been gone so long I've forgotten.

The accelerated ones were great but sadly due to their nature didn't last.

lakill Farm

Buford T. Justice V wrote: »

12.5% I think? Or 15% for 6 years and 10% the last?

They've been gone so long I've forgotten.

12.5% over 8 years

Timmaay

Buford T. Justice V wrote: »

12.5% I think? Or 15% for 6 years and 10% the last?

They've been gone so long I've forgotten.

Get ya now. It makes sense I guess to spread out capital investment so, so as you are always getting some capital write off. No point spending 2 or 3 years with a huge capital write off throwing you well under the lower rate of tax.

amacca

sorry for butting in...just curious, can portions of profits be moved forward/carried forward to subsequent years to offset against losses?

In the same way losses can be carried forward?

Timmaay

amacca wrote: »

sorry for butting in...just curious, can portions of profits be moved forward/carried forward to subsequent years to offset against losses?

In the same way losses can be carried forward?

Income averaging?

lakill Farm

amacca wrote: »

sorry for butting in...just curious, can portions of profits be moved forward/carried forward to subsequent years to offset against losses?

In the same way losses can be carried forward?

No

Milked out

amacca wrote: »

sorry for butting in...just curious, can portions of profits be moved forward/carried forward to subsequent years to offset against losses?

In the same way losses can be carried forward?

This is where doing em early in good years comes in, you can purchase goods in the good calender year and put them against that years tax and if following year is bad x amount of stock is on hand then, within reason of course. Income averaging allows you the pay the average tax based on previous 5 years profits, used to be 3. Good get caught out but in general it balance out the tax a bit. Only thing is you have to stay in for 3 years, maybe 5 with new time period?