Tax returns.

If the purpose is reducing your income tax bill then only your pension contributions count towards it, not your employer or the government.

IMO every farmer should have some private pension that they can make extra contributions to in the good years.

How much are accountants charging lads? I'm sole trader here in partnership with father and last years bill was 2700 not sure if that is high or not

So say you have the 400k in the company and the pension is maxxed....can you purchase anything else with the 400k ...business related assets, property/land, machinery, construction/sheds etc....

I suppose that's only deferring the eventual drawdown/ avoiding or reducing tax until you do liquidate?

If you have a decent director's loan, you get that out tax free I suppose...

What actually happens to the rest when you liquidate? Land, sheds, machinery owned by company? You have to sell and pay tax at above 12.5%?....

I assume the retirement relief is if you are passing it on to children/spouse?

2200 last year for a similar set up. Everything is in folders for them, they do our non registered vat returns for that aswell.

You can’t write it off in one year if you do.

Brilliant information lads - thank yous!
I will have separate invoices for the 3, so can write down separately I think. 2 options if I am reading above correctly…

1. all can be claimed in year one (including digger work with "land maintenance" on invoice) but can't claim back the VAT
2. claim the VAT back on all, and write down over 8 years

or split them up separately.

There will be reseeding, fertilizer, fencing next year - can look at forward paying some that. Kids too young; I think advisor told me to wait until they 15 before they can go down on payroll.

Didn't think of the other expenses - phone, clothes, shoes

Thanks again

There’s little chance the plastic tractor would stand up to a Revenue inspection, certainly not an in depth review

Anything can be included in theory, the accountant or tax agent allowing it to be included doesn’t mean it is allowed to be

In terms of saving tax is machinary/purchase of land/building shed all the same?

My rule is to make the sheep pay for themselves. Any subsidies are profit.

If you had good average, and good entertainments it would be manageable.

Another way of looking at it would be, what could you make off the land if you didn't farm it. What is naked land leasing for in your area. If you could keep the entitlements, and a minimal number of stock. You could rent out the remaining land for grazing. What would you make in this circumstance???

You'll find it you break your back working stock, you would probably make similar with an easy life leasing it