Dairy Chitchat 4, an udder new thread.

I would not need an accountant to do that for me. It's pretty basic maths. Remember he is also showing where a young farmer (60% rate) and an older (40%) combine to do the development. It sounds easy but you need to fund the complete project from the start.

Basically you look at the cost of the project , take away the Vat element and grant money. What is left is deprecated over eight years giving you a tax free allowance.

However you need the higher rate of tax to fully benefit from it. Remember in you case you will ( I think) only access the 40% grant and you only have access to 90k in TAMS investment allowance.

Assuming you can finance it and qualify for the grant(there is a points system to avail of the grant) your allowance is,

90+ vat(11.7k @ 13% rate) =101.7k

Less grant @40% of 90k =36k

90-36= 54k you need to finance it.

54k is giving you an annual capital allowance of 6750 euro or a tax saving at the higher rate of approx 3375 euro per year.

Finance 54k @6% over the same time gives you yearly repayments of 8.5k/year. Your allowance will allow you to repay 6750/year if that ( and the interest elements of the loan) out of pre tax income. If you are in the high tax rate happy days net cost is about 5k/ years in real terms.

However there is a few catches if you need to borrow the POST grant shed cost you will also need to borrow the PRE grant and vat shed cost. That is another 48k, assuming you manage to build it and draw grant and vat within twelve months ( it will probably run to 18 months) that loan will cost you another 3k/12 months in interest only at least.

Add in planning and it's hard to bring a shed in at the grant costings ( I have done it but it's not easy get rid of the frills) you could easily end up 10K over budget and have another 12-1500/ year extra in repayments. As well your account will probably charge you 1-200 for doing some extra vat paperwork, and the great Marty or a similar Agri consultant will try to charge you 7-800 to make the grant application. None of which is allowable in the grant AFAIK

All them wafflers are the same. It's easy put it on paper. Its a bit more messy to actually get it from the paper into the ground.

He'll be catching up with my post count soon

The point I was making was they should have been protesting about it months ago, not when the payment is nearly due

Surely not