Farming and income tax

kerb

hi all

Im taking over a small Farm suckler heard
will be about 10 cows selling calfs at about 9 months might keep afew till 18 months

so i have to put a slatted shed as we always out wintered but i wont have time for that when working and i also want them of the land for winter

so i wont be making any money for a good few years or maybe even running at a loss for awhile

will get anc payments , greening etc

so what im wondering is can i offset a loss on farm account against my income tax that i pay in my wages

thanks a mill if someone was in this situation and would have info

thanks

TooOldBoots

Yes is the simple answer.
but you cannot do it indefinitely, if the farm keeps making a loss year after year eventually revenue will have an issue with it.
Also building a slatted house will not mean you can deduct the expenditure of the building from your accounts as an expense. Its a capital allowance and is treated differently.
You need to sit down with an accountant or Tax planner for a half an hour. It would be worth more to you than months slogging on the farm!

kerb

TooOldBoots wrote: »

Yes is the simple answer.
but you cannot do it indefinitely, if the farm keeps making a loss year after year eventually revenue will have an issue with it.
Also building a slatted house will not mean you can deduct the expenditure of the building from your accounts as an expense. Its a capital allowance and is treated differently.
You need to sit down with an accountant or Tax planner for a half an hour. It would be worth more to you than months slogging on the farm!

Thanks for info now need a good accountant

kk.man

What's the change in relation to casual workers in the budget?
I like most employ casual workers at times on the farm but logging it with Revenue seems very cumbersome and a pain,that's what I gather from it.
Maybe some of posters here whom know of such matters could clarify it?

roosky

Hi all,

I have made a good profit this year on paper as i had to sell a lot of stock for personal reasons and I now have a massive income for the year, if i buy machinery its put down over 8 years so what can i buy this year to bring my "profit" back to a reasonable figure ?

TIA

roosky

roosky wrote: »

Hi all,

I have made a good profit this year on paper as i had to sell a lot of stock for personal reasons and I now have a massive income for the year, if i buy machinery its put down over 8 years so what can i buy this year to bring my "profit" back to a reasonable figure ?

TIA

Talk to your accountant.

One possibility is income averaging:
https://www.revenue.ie/en/self-assessment-and-self-employment/farming/income-averaging.aspx

foundation10

kk.man wrote: »

What's the change in relation to casual workers in the budget?
I like most employ casual workers at times on the farm but logging it with Revenue seems very cumbersome and a pain,that's what I gather from it.
Maybe some of posters here whom know of such matters could clarify it?

Yes payment to any workers now need to be reported to revenue real time. So if you employ a person and say you pay them today this must be reported to revenue today. Most businesses with employees will have a payroll package which is linked to the revenue system and I would say to be compliant you would need a payroll package. A solution for you maybe talk to your accountant to report the payments to revenue on your behalf depending on the number of times you pay doing the year. It maybe worth reducing the frequency you pay to say monthly as opposed to weekly it just reduces the number of times you need to report payments to revenue.

jaymla627

roosky wrote: »

Hi all,

I have made a good profit this year on paper as i had to sell a lot of stock for personal reasons and I now have a massive income for the year, if i buy machinery its put down over 8 years so what can i buy this year to bring my "profit" back to a reasonable figure ?

TIA

Once you had your stock valued correctly on the books of your starting stock value was 70k and your closing stock value is now say 50k, I'm pretty sure the 20k " profit " of sales is recorded as a loss to the business as closing stock values are down at year end

lalababa

RE to the OP, I'm not knocking you and you can build a shed if you want and nothing wrong with that. Just that I can't see the point much financially and practically either much.
Financially a 3bay would be 30k+. Sucklers are break even to loss making ATM according to the bean counters. Let's take a best case scenario of you making 150 euros a head x 10= 1500 before time & labour. 30,000/1500 = 15yrs before you are break even & basically doing what?- 5 hrs a week for 15 years for nothing.
As to shed v. outwintering & off farm job: what's the big dfference. Infact they feed themselves being out. You could cut numbers Abit and change to a lighter smaller cow.

Stationmaster

roosky wrote: »

Hi all,

I have made a good profit this year on paper as i had to sell a lot of stock for personal reasons and I now have a massive income for the year, if i buy machinery its put down over 8 years so what can i buy this year to bring my "profit" back to a reasonable figure ?

TIA

As the other poster said are you including opening and closing stock figures in your calculations because if not then your profit mightn't be half as big as you think.

Income averaging is an option also as mentioned.

Anything of high value that is seen as 'capital expenditure' can only be written off as capital allowances so I don;t think there's an easy answer there.

Stationmaster

kk.man wrote: »

What's the change in relation to casual workers in the budget?
I like most employ casual workers at times on the farm but logging it with Revenue seems very cumbersome and a pain,that's what I gather from it.
Maybe some of posters here whom know of such matters could clarify it?

Revenue don't recognise 'casual' staff anymore. You either put them on the books as employees or get an invoice from them to back up your payment.

Sugarbowl

Anyone putting a son/daughter down as an employee on farm? Any negatives to it?

Stationmaster

Sugarbowl wrote: »

Anyone putting a son/daughter down as an employee on farm? Any negatives to it?

Just make sure the money is being paid as you put the wages through i.e. don't just put through a weekly amount for the accounts but have no money going out to back it up as this will let revenue use it as you doing it purely to save tax.

Bass Reeves

Sugarbowl wrote: »

Anyone putting a son/daughter down as an employee on farm? Any negatives to it?

No negatives. However you need for the money to be going into there account as Stationmaster said. Paying monthly is as good as any method. You need someone to set it up on line for you. Make sure when you are finishing paying them you notify the person found the paperwork to revenue that you have finished paying them.

Lime Tree Farm

Sugarbowl wrote: »

Anyone putting a son/daughter down as an employee on farm? Any negatives to it?

https://susi.ie/quick-links/self-employment-farming-or-rental/

SUSI assessment Add-backs

"Wages or payments to dependent children"
Certain deductions allowed by revenue are not allowable for SUSI grant assessment purposes.

Bass Reeves

Lime Tree Farm wrote: »

https://susi.ie/quick-links/self-employment-farming-or-rental/

SUSI assessment Add-backs

"Wages or payments to dependent children"
Certain deductions allowed by revenue are not allowable for SUSI grant assessment purposes.

Usually if you are paying wages to children you are not qualifying for third level grant.