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USC and PRSI on Forestry Income

  • 22-01-2020 8:41am
    #1
    TheBody
    Registered Users, Registered Users 2 Posts: 5,633 ✭✭✭


    Hi folks.


    I'm a regular PAYE individual. In particular I don't have a heard number and I am not VAT registered or anything like that.


    I inherited a small forest a few years ago and in 2019, I claimed a number of grants from the Dept. of Agriculture, namely, the annual afforestation grant, the woodland improvement grant and the forest road grant. In addition there was also profit from the first thinning of the forest.


    However, there was also considerable expense in getting the access road in, hiring a registered forester to oversee all the works and paying for the harvesting and haulage of the thinninigs.


    What I am wondering is, do I declare the nett profit after all my expenses are taken out or if I declare the gross amounts? I know these amounts are exempt from income tax but I need to declare them to revenue for USC and PRSI.



    From googling, it would seem to be the nett profit but I would like to get confirmation of that.


    See here for an example where they refer to USC and PRSI on profits: https://www.agriland.ie/farming-news/budget-2019-favourable-tax-regime-for-irish-forestry/



    Thanks folks!


Comments

  • #2
    2020Vision
    Closed Accounts Posts: 86 ✭✭2020Vision


    TheBody wrote: »

    What I am wondering is, do I declare the nett profit after all my expenses are taken out or if I declare the gross amounts? I know these amounts are exempt from income tax but I need to declare them to revenue for USC and PRSI.

    From googling, it would seem to be the nett profit but I would like to get confirmation of that.

    Thanks folks!

    Looks like nett profit for PRSI but gross income for USC!

    Pay Related Social Insurance

    The profit from forestry for each year is fully liable to PRSI. Profit is defined as a financial gain when the amount of revenue earned exceeds the expenses, costs and taxes of producing timber.

    Universal Social Charge

    USC is a tax payable on total income.

    https://www.ifa.ie/guide-to-woodland-taxation/


  • #3
    TheBody
    Registered Users, Registered Users 2 Posts: 5,633 ✭✭✭TheBody


    2020Vision wrote: »
    Looks like nett profit for PRSI but gross income for USC!



    https://www.ifa.ie/guide-to-woodland-taxation/


    Excellent. Thank you.


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