PAYE Write Off

adne · 28-02-2011 01:26PM #1

I work full time (PAYE worker) and farm part time. An opportunity has arose to purchase a couple of acres of adjoining land, My Q is if I get a loan for this purchase can some of my PAYE TAX be written off against this farm loan?

BeeDI · 28-02-2011 01:43PM

adne wrote: »

I work full time (PAYE worker) and farm part time. An opportunity has arose to purchase a couple of acres of adjoining land, My Q is if I get a loan for this purchase can some of my PAYE TAX be written off against this farm loan?

Operating losses incurred on your farm business, can be set against PAYE tax, for up to a maximum of three successive years.
If your farm accounts show a profit at the minute, you should be paying tax on those profits.
If you buy the land, you will certainly be able to put the interest on the loan, against your farm profit, and in that way reduce your tax bill.

B

foundation10 · 28-02-2011 01:47PM

The interest element of the loan can be used as a farm expense hence reducing your farming profits. So in effect you are reducing your liability to tax on your farming profits. If your farm generates a loss then this loss can be used to reduce your taxable PAYE Income and therefore depending on your PAYE income may entitle you to a refund of PAYE tax paid. Revenue normally will only permit the offset of these losses if you are carrying on the farm as a commercial entity and just not racking up losses for tax purposes.

PAYE Write Off

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