Shed taxation question.

893bet

Hi folks,

If I were to build a new shed over the space of a few years. Maybe foundations and standing steel one year, timber and sheeting the next, finished floor and walls the year after.

Can I choose to not capitalise and instead put it through against that years tax?

I am guessing not? Ieto do that I would have to mis declare eg as repairs each year

Tonynewholland

https://www.boards.ie/discussion/2058323282/shed-taxation-question

It's not the way it's meant to be done. Also if you reclaim the vat your meant to write it off over 7 years. Anyway wouldn't it be as well to finish a shed , what use is it unfinished and open to the weather

Farm365

Because he wants to do it when he has the money rather than having to borrow for it I’m guessing

Tonynewholland

https://www.boards.ie/discussion/comment/121388232#Comment_121388232

Wait until the 3rd year so. No point in having the steel for the shed standing with no support. Much harder to do the walls if the side sheeting is on. No insurance until shed is complete

jaymla627

https://www.boards.ie/discussion/2058323282/shed-taxation-question

Just don't reclaim vat and put it in as repairs yearly as you build would be zero issue, with revenue their not going to do a spot check, if you reclaim vat on materials you can't do the above, as far as I know

893bet

https://www.boards.ie/discussion/comment/121388232#Comment_121388232

Pretty much. And can use it to keep tax bill close to zero for them years.

The answer is as I suspected.

Not set on it anyway.

JohnChadwick

Is there any sort of limit imposed on the € amount you can put through as shed repairs in a given year...?

Cavanjack

https://www.boards.ie/discussion/comment/121388436#Comment_121388436

Not necessarily. A shed must be wrote off over 7 years I think.

Mooooo

https://www.boards.ie/discussion/comment/121389393#Comment_121389393

Any more than 10% of turnover on a year and it apparently raises a flag automatically in revenue. I assume if it can be proved that it is repairs according to their interpretation it would be OK but would want to be fairly on the ball with them