joint herd number.....tax !!!

roosky

Hi all,

Im in a joint herd number with father and the accountant wants us to decide what split we have on profits.

Am I obliged to split the profits 50/50 or can I give him 90% on paper as hes in a better tax position than me!

what are others doing

TIA

Mooooo

The accountant should be advising on it, he would know what percentage split would be most tax efficient and should then present that to ye to see if ye agree. It doesn't have to be 50 50

Aravo

80/20 is very common. With min 20% to the young farmer. Some are doing this especially if the young farmer has off farm income so you don't get screwed with tax after all your hard work. Best to speak with an accountant to advise.

L1985

Some schemes you have to be 80/20 and others 90/10 will do. Ask your agri advisor if this applies to you as well as the accountant

Who2

I run all through my fathers name. Accountant said once someone was paying tax on it they were happy enough.

Aravo

Who2 wrote:

I run all through my fathers name. Accountant said once someone was paying tax on it they were happy enough.

But if the son/daughter had an off farm income their tax would likely be 40%, compared with the fathers 20% tax rate.

If revenue ever did a check they would be looking for the missing 20% + interest + penalties.

There was a discussion on this previously (9mths ago) with the thread title herd number

Who2

Aravo wrote: »

But if the son/daughter had an off farm income their tax would likely be 40%, compared with the fathers 20% tax rate.

If revenue ever did a check they would be looking for the missing 20% + interest + penalties.

There was a discussion on this previously (9mths ago) with the thread title herd number

Maybe they will I don’t know but for now that’s how I do it. The returns aren’t going to make anyone up anyhow.

Mooooo

Aravo wrote: »

But if the son/daughter had an off farm income their tax would likely be 40%, compared with the fathers 20% tax rate.

If revenue ever did a check they would be looking for the missing 20% + interest + penalties.

There was a discussion on this previously (9mths ago) with the thread title herd

The accountant should know the best / correct breakdown, if they don't a new accountant is needed

Cavanjack

Sure I thought there was nobody on here making a penny, tax shouldn't be a problem

SuperTortoise

Some lads would be into the higher band even without farming.

roosky

Ya so if I put 20% in my name it will cost me about €1200 so might just chance leaving all in fathers name.......

lakill Farm

What is the partnership %.

It will have been declared to Revenue when the partnership was registered with Revenue and a seperate tax ID (pps no) would have been supplied so as to file the form1

roosky

lakill Farm wrote: »

What is the partnership %.

It will have been declared to Revenue when the partnership was registered with Revenue and a seperate tax ID (pps no) would have been supplied so as to file the form1

Not a registered partnership just a joint herdnumber

lakill Farm

roosky wrote: »

Not a registered partnership just a joint herdnumber

If there is no partnership agreement then its counted 50/50

Aravo

lakill Farm wrote:

If there is no partnership agreement then its counted 50/50

I believe a lot are using 80/20 split for joint herdno, especially where there is off farm income. Revenue see it as 50/50 unless notified otherwise when the taxes are paid.

josephsoap

lakill Farm wrote: »

If there is no partnership agreement then its counted 50/50

Does the form 1 still have to filed in this instance ?

lakill Farm

josephsoap wrote: »

Does the form 1 still have to filed in this instance ?

cant file a form1 unless the partnership has a separate tax number

Partner 1 - tax ID (Form 11)
partner 2 - tax ID (Form 11)
Partnership - Tax ID (Form 1)

shine a light

Hi all, I am in the process of adding my name to my father’s herd number so it will be a joint herd number. I have completed the green cert and intend on applying for the 25% top up under the ‘Young Farmer Scheme’. My father and I intend on setting up a tax partnership as my off farm income is €50,000 with an 80%/20% profit split (20% to me). My first question is – as we are going to be in a tax partnership will I be able to avail of the 25% on all our entitlements or just 20% of them as per the tax partnership?

We are also in the process of transferring the farm itself. When you inherit the farm do the entitlements automatically transfer with the land or how does that work?

Thanks in advance.

roosky

remember that you will be ruling yourself out of the 60% grants as a young farmer.

If i was doing it again i would have transferred all to me and left it cleaner i was just kicking a can down the road by going joint herd number

shine a light

Thanks very much for the advice, it was something I hadn’t considered. A possible way around it would be initially sign up to the joint herd number and then go on your own, provided its within the 5 year window.