🤣🤣debate, bass who possibly could debate in all fairness you flogged a dead issue on here with you being ridiculed by a good few for your plucking figures out of thin air...and a few other places ...... no a debate is not something that I will be having with you . You have a few good points but you don't understand a lot of things and when people pull you up you just double down on being wrong.
I see you are well able to debate and explain your understanding of what you are posting.
Basically you accountant told you what to do and you went along.
So again I ask you to explain how most of a million in tax free money was created, look even a few hundred K will do.
Actually if you know a way to create a few thousand in a tax free structures explain it to me.
There is no such thing as a free Lunch.
Yes companies are used by many different entities. The main reason orginally for a company is not tax efficiencies but to protect the owner as he had limited liability except to the capital he had invested in the company.
The main reasons land is so expensive is because of longterm leasing benefits( which has now being stopped) and the use of company structures to buy farms either within or external to agricultural. And I am talking about agricultural not development land. I like to see the figures for land bought within company structures and the price paid. Because its highly unlikley that any significant purchases are not within company structures.
Absolutely 💯 Jesus when we formed a company here many years ago friends who were sole trading were in tears with the protection it offered in business and the fact that they were locked out of it. The company structure and administrative side of things has really eased so much in the last number of years
Good man bass are we up or down on the cop your full of shite ted
Ltd companies weren't created for the benefit of dairy farmers, most profitable small and medium size businesses outside of agriculture are in Ltd structures. There are farms it won't suit but there are lots of dairy farms where it makes the most sense.
Land is expensive for loads of different reasons, farmers in company structures is not the main driving force.
unfortunately.. this post makes alot of sense... what kind of profits would a farmer want to be making to justify setting farm up as a Ltd company??
It's a bit more complicated than that. There's a rush and encouragement for dairy farmers to go the company route even where significant cash reserves will not be created. Use of pension funding will often solve the problem until children are old enough to be paid wages.
As for building cash reserved to buy land, for farmers in reality there is no savings. The use of company structure to buy land is the reason land has gone so expensive. So once again farmers have been sold a pup. The accountants , agri consultants, auctionees, solicitors all get bigger fees, the seller get away higher price, the government get more stamp duty and probably collects extra capital gains tax, and guess what the stupid farmer pays it all.
And he thinks he is winning because its within a tax free structure for capital repayments, except technically its not you pay 12.5%.
And to finally add insult to injury you do not own the f@@king land.
And the problem can be where assets such as stock are not properly accounted for they go into the company at a lower value than they are worth as otherwise you can create a significant tax liability
I’ll be going with separate so 😂
I’ve a mix of pedigree Hol and BF-Hol so far. The pedigree Hol are savages for meal and they’re only 15-16 months. I’m giving them 1.5kg in the shed but I know by the way they go for it, they’d easily eat twice as much if they got it.
Not sure how much I’ll feed any of them in the parlour. Will play it by ear. I don’t plan on pumping them but I won’t leave them short either. I won’t really know til I’m standing in the pit
Pray tell how you create directors loans of ev⁹en a few hundred thousand tax free I be happy with that ........because there's no such f@@king thing.
Most directors loans are for existing stock and for unused depreciation on machinery or other assets. If you are generating enough profit within the company you can rapidly draw down the so called ''loans''. One thing wrong with that, is if you have substantial directors loans you will have significant assets within the company, not just stock or machinery( unless you are agri contracting) but yards and sheds unless you had significant depreciation unused somewhere or directed a loss from another trading entity into the company
I m involved in one.its just alot of people ask me about it and I m not sure they fully understand.
You have to make money...even if its only on paper to justify the company route if your drawing a savage wage and paying for holidays out I'd a farm business your on a hiding to nothing anyway. No matter what structure you have
I call myself a fooking ejeet most days for not getting a cushy number in the department of ag or someplace
Fdc want 5k to setup company I am considering it myself
the way I read is if you take 3 holidays and have high drawings every year as well of to stay sole trader and have alot of investment in shed and machinery but if you intend to buy land good idea for company to build up cash reserves but you have still make all this money every year farming and wars are very volatile look at trump today and his tango head
It's a long term decision, but the main reasons were to retain cash in the business, reduce tax liability particularly in high milk price years and make it easier to pay for land purchase
Everyone has to pick some structure to farm in there are pro/cons to each one. We are happy we are in the right structure for our farm.
I have individual places have no experience of other types cows will still shove smaller cows about in both. 2ft 6 standings is better than 3ft standings
You don't like the idea of a company structure I get it. I'm done ✔️
do the people here in limited companies now call themselves company directors as oppose to farmers?
siamsa - if ruinning low cost system/animal go with one, if going with hol type breeding id go with separate...how much meal are you budgeting to feed?
One long one here. Adjustable breast rail a must
Just to deal with the loan s .in a dairy setup a substantial part of the loans would be stock which if it was accounted for properly was already available tax free on sale or retirement to the best of my knowledge.my fear is people just look at the tax number and don't understand that you can't spend it on coke and hookers anymore
Design question for feeders in the parlour - would individual feeders be safer for slow/shy cows rather than one big long trough where the bigger/faster cows could hoover up more than their share?
I think I saw Farm Theory saying he thought this but it turned out not to matter in his new parlour.
I see on ear to the ground there they mentioned increasing the minimum storage requirements by 20% and the extra cost but no mention of the fact that if dero goes the cows to pay for it may be gone. Be nice if they covered all aspects for a change. Yer wan Holly cairns harping onon newstalk talking shite as well when it's the reg changes are the causes of the problems she's giving out about now
There's lots of ways and means that should be explored long before that. Time comes. A really good accountant is required when setting up and managing a company just for instance you know that all lands owned before incorporating are only leased into the company ...........there are farmers with director loans running into close to the million mark.
( tax free money owed to the directors by the company) That's a couple of examples...and I'm not that bright god help us.
For once I agree with Baas. If you are reinvesting in the farm there is no point being in company structure because you can claim capital allowances anyway. You would have to be throwing off substantial free cash before even thinking about company structure, perhaps if you bought land it would make it easier to make capital repayments. If it is just to avoid paying tax there are lots of other thing you could do with your money to keep it out of the tax man's hands. A good pension being number one.
When you say cash for reinvestment are you saying infrastructure and facilities spending or asset purchase?
How so?.it can do different things for different people but I ll just pose a question.time moves on and you have 3 children so you want to do something for all of them.if one is continue farming and you have retained alot of your cash within the company how do you look after the other 2 children.
Bass your away again on one
What's the latest cost of production bass are we down to 15 cent a litre yet and sure give the gobshite 10k a year he'll be happy with that ( the wife will keep the rest going)
That's a ridiculous statement kg 🙄 I completely agree with yewdairy
What kind of retained profits are you holding onto, 10-20k/ year......50k/ year or 70-100k+.
If its less than 50k/ year you are wasting your time unless you are investing in land or something else and even at 50k retained profits its probably border line
I see someone was listening in class
