Young Farmer Partnership minimum percentage

voz es

Well Folks,
I am hoping to get some advise here. I am a college student who just finished the green cert. I have applied for young farmer subsidies and increased payment on the basic farmer scheme.

All this has been done with a view to succession of the farm and inheritance of half of it down the road.

I actively partake in the farm.

My query is what is the minimum amount of a partnership agreement that I can get away with, as I cant afford to be paying tax, i'm broke as it is.

I was hoping to show revenue that the split was 99.5% my parents and 0.5% for me. However the accountant we have is having none of it, they say it needs to be 50-50 has anybody experience of this before.

ganmo

The young farmer 'bonus' is dependant on the young farmer being responsible for the farm finances.
And the profit split is set in stone in the agreement so can't be changed year on year so if you set it at 0.5% in 10 years time you'd still be at 0.5%


And I'm not sure what you're on about that ya can't afford to pay tax, if you're earning enough money to max out your credits as a student fair decks to ya

Freejin

voz es wrote: »

Well Folks,
I am hoping to get some advise here. I am a college student who just finished the green cert. I have applied for young farmer subsidies and increased payment on the basic farmer scheme.

All this has been done with a view to succession of the farm and inheritance of half of it down the road.

I actively partake in the farm.

My query is what is the minimum amount of a partnership agreement that I can get away with, as I cant afford to be paying tax, i'm broke as it is.

I was hoping to show revenue that the split was 99.5% my parents and 0.5% for me. However the accountant we have is having none of it, they say it needs to be 50-50 has anybody experience of this before.

Our partnership agreement at home (myself, father and mother) left it to my fathers discretion (as the controlling partner) to decide on the split on the profits. Not sure if it applies to Young farmer schemes, but for the stamp duty allowance for Young trained farmers you had to be able to show you were working at least 50% of your time on the farm. Could be difficult to explain if you were only getting 0.5% of the profit

J.O. Farmer

You only pay tax on the farm profits if any and that comes from the farm profits. I don't see your problem. You having no other income should probably reduce the farm tax bill.

Have your accountant explain it again.

L1985

Agri advisor told us the minimum is 20-80 split. It's not 90-10 like for the young farmers. This would be for a registered partnership.

voz es

Thanks for the reply folks. I suppose succession can be a very tricky thing at times. It is a very small farm holding.

atlantic mist

51%
or if lower: letter stating that young trained farmer is the controlling partner for financial and decision making within the partnership

tractorporn

L1985 wrote:

Agri advisor told us the minimum is 20-80 split. It's not 90-10 like for the young farmers. This would be for a registered partnership.

To be a registered farm partnership with the department it has to be an 80/20 minimum split. Revenue won't recognise anything below that either. The only thing that recognises anything below that is the young farmers scheme

Icelandicseige

Would going into a partnership affect your abilitie to claim a Grant since you are in college ??

Aravo

I am in a joint herdnumber and I am a paye worker. Talks of a 80/20 split. With myself being 20% as this help things tax wise. Do I now need to have an accountant and file returns. Is there certain limits where this kicks in. Nearing the time of year for returns.