What Are The Tax Implications Of Doing GLAS?

mikefoxo

Father's mulling over whether to do GLAS or not. One of the things he's worried about is the tax side. Farm isn't the main source of income, just supplementary. Self employed too. The way I thought it went was that any money you don't spend on the farm gets taxed at 50% - am I right in thinking thus????

Brown Podzol

Its treated as income and taxed at your marginal rate.

Miname

If tax is the reason a self employed person that also farms isn't joining Glas, then he needs a new accountant.

mikefoxo

Miname wrote: »

If tax is the reason a self employed person that also farms isn't joining Glas, then he needs a new accountant.

Father's never done any sort of scheme (REPS, AEOS) so doesn't really know what to expect. I'm just trying to ease any concerns he might have

barnaman

Mulling over it myself as number of the easier schemes cut for round 2 and the cost of joining scheme ie paying a planner and annual planner cost make return small enough. My farms lots options in theory, fairly large, have feature etc was €1800 a year payment from Glas

Username John

barnaman wrote: »

Mulling over it myself as number of the easier schemes cut for round 2 and the cost of joining scheme ie paying a planner and annual planner cost make return small enough. My farms lots options in theory, fairly large, have feature etc was €1800 a year payment from Glas

I decided against it...

- With the hedging now gone as an option, this reduced my payment by a good bit
- even before the hedging was gone, may payment wouldn't have been huge anyways, no where near the max
- Plus, I wouldn't be confident of even getting in as not in a special area, etc...
- I would have put in some wild bird cover - but that would been an annual cost as well as the planner cost.
- I want to do some reclaiming next year and either plant wild bird cover or grass, and would be annoyed waiting for 12 months only to find out I hadn't gotten in
- the hassle of it all...

So decided against it...

Farmer

Worst case scenario, if you're getting the Glas money without too much effort, either buy something to make life easier (this could be labour also), or just drop something that's hard work at the moment (those few extra sucklers that you don't really have place for)

Convert the money into more time for your other business or lifestyle. I also agree with post above re accountant