Accounts attached - The current reality facing beef farmers - Any advice?

Tax bill is for last year.

that’s including all the tax you and the wife would have paid already from your paye I’m assuming?

tax from rental isn’t automatically near 50%, it’s just that a rental income usually pushes people over the threshold.

its a sore dose to have to pay that much no doubt. If you were a big multi national you’d hardly Have to pay 1700, not mind 17k

Understood.

But unless he halved the rent this year then a similar problem will occur next year.

Now is a good time to look at how the account will fall and will be due next year so decisions can be made. That decision might be to forward but something or it might be to delay paying a bill. But that decision can be worth 1000s if made at the right time.

OP only hope for last year is maybe pension contribution or some fancy accounting.

You could not income average if you had an off farm income whether that is still the case or not I am not sure. It would not be helpful usually as most workers would be near the higher tax cut off anyway. You would want a large part of the 20% allowance available for that to be any use.

Doing my self assessment with ros this week, joint assessment with wife and farm.

So, after expenses I have 1000 of farm profit, now I finished a new shed last year so have capital allowance of 35000,can use 15%which gives me 5000 of capital allowance for 2021.

Can that 5000 allowance be claimed against myself and wife's paye income and farm profit of 1000 or can it be only claimed against my 1000 profit from farm? Does it carry over to following year then as surely it just can't disappear.

1st year with a large capital allowance, and small farm profit, so struggling with this aspect. Will employ accountant going forward I think.

Full time farming here and you want to see depressing accounts should see mine still paying tax though. With lads working off farm do you get to write off farm losses against your PAYE income? Just to make up figures/example Your farm has a loss of 35k you work a job earning 70k and would normally be paying 35k tax on that job. Do you get that 35k back as farm losing money, a percentage of it or how does it work?

Thanks

I use IFAC think the bill for them is about 2k a year including book keeping. Have 3 cows to calve tonight inc one with a set of twins; it is kinda crazy that farm loss is an income write off; explains why contractors charge what they like! I am in foul humour as ft farming with sucklers is really a mugs game.

Think 1200 for accounts and 800 for the book keeper; to be honest could do it myself but useful for farms loans think IFAC reports taken as correct and reliable have that from various bank lads. Made camoile tea have hot water bottle and alarm set for 3am.

I do all the bookkeeping, send it in to him on excel. Farm accounts and two house rentals. I get charged €550 including vat. It’s plenty. Would he spend 4 hours at it? I doubt it.

TBH it looks like you are being taken for a ride. I presume with the 90k gross part of that is your PAYE income. There is no work for the accountant with that they just do the figures. I never get pre accounts done, I just let the apples fall where they will to an extent.

Previously I used have my accounts completed mid June every year. Lately it's starting to be Sept/Oct before the Accountant completes them. Which is too late for corrections to present year accounts

Is that 90k income you mention 90k profit, or 90k turnover. If its profit you must have a serious herd of stock to make that from suckling, fair play to you.

No 90k gross 45k direct and same from the cows. The actually farming makes about nothing as in costs equals sales. Direct subs used for loans and live off; if I invest more into farm which I need to; I need to find a fat ostrich.

You are paying for his signature same is true of them all; remember all our accounts are self certified not audited accounts. I has audiitted accouts done once there auditor takes professional and legal respnsibility that accoutns are correct,

Few neighbours do their own and get on fine.

Nice feeling to be finished.

Was there an extension that you heard of? I see when I check the returns on ROS that the due date is showing as 20th November. Not that it makes any difference at this stage

Yes. See extract attached