Building shed tax implications?

kevthegaff · 23-09-2013 08:12PM #1

Lads thinking of putting up another cubicle shed 40cubicles that will also cover collecting yard(sick of spreading water) Anyways priced the shed 90x75ft 20k incl vat, tank i reckon 20k errecting shed 5-7k, cubicles, mats, feed rails 10k scrapers 8k. Roughly 70k doing some of the cubicles and concrete myself. Anyway is it more tax effecient say if i do it in stages, tank first year, shed second and cubicles third year as i can write it off against tax. Or getting a loan of maybe 50 the first year to do the lot, will it still write off the same amount or just the interest on the loan?

Timmaay · 23-09-2013 08:37PM

kevthegaff wrote: »

Lads thinking of putting up another cubicle shed 40cubicles that will also cover collecting yard(sick of spreading water) Anyways priced the shed 90x75ft 20k incl vat, tank i reckon 20k errecting shed 5-7k, cubicles, mats, feed rails 10k scrapers 8k. Roughly 70k doing some of the cubicles and concrete myself. Anyway is it more tax effecient say if i do it in stages, tank first year, shed second and cubicles third year as i can write it off against tax. Or getting a loan of maybe 50 the first year to do the lot, will it still write off the same amount or just the interest on the loan?

I don't think it will make any difference, you will be writing it off as capital either way, which is spread over I think 8yrs? The only way doing it in stages might be a tax advantage would be if you manged to put each stage down as maintenance/repairs instead of capital expenditure, but of course I wouldn't be advocating tax dodging as such!

jersey101 · 23-09-2013 08:45PM

kevthegaff wrote: »

Lads thinking of putting up another cubicle shed 40cubicles that will also cover collecting yard(sick of spreading water) Anyways priced the shed 90x75ft 20k incl vat, tank i reckon 20k errecting shed 5-7k, cubicles, mats, feed rails 10k scrapers 8k. Roughly 70k doing some of the cubicles and concrete myself. Anyway is it more tax effecient say if i do it in stages, tank first year, shed second and cubicles third year as i can write it off against tax. Or getting a loan of maybe 50 the first year to do the lot, will it still write off the same amount or just the interest on the loan?

thats an expensive shed. I was at a farm walk and the farmer had built a shed for 1k a cubicle then again the shed had 300 cubicles so maybe the bigger ye build the cheaper it gets. In a matter of speaking. Aslo the lad had a lagoon so that might have made it cheaper

kevthegaff · 23-09-2013 09:09PM

jersey101 wrote: »

thats an expensive shed. I was at a farm walk and the farmer had built a shed for 1k a cubicle then again the shed had 300 cubicles so maybe the bigger ye build the cheaper it gets. In a matter of speaking. Aslo the lad had a lagoon so that might have made it cheaper

I have only done a rough calculation, it would have the capacity for 80 altogether if i wanted to add more cubicles. My friend is putting up a 70-80 cubicle shed at the moment and he reckons around 70.

jersey101 · 23-09-2013 09:11PM

kevthegaff wrote: »

I have only done a rough calculation, it would have the capacity for 80 altogether if i wanted to add more cubicles. My friend is putting up a 70-80 cubicle shed at the moment and he reckons around 70.

ah okay thats a good price then if it holds that many cubicles

KCTK · 23-09-2013 09:18PM

Timmaay wrote: »

I don't think it will make any difference, you will be writing it off as capital either way, which is spread over I think 8yrs? The only way doing it in stages might be a tax advantage would be if you manged to put each stage down as maintenance/repairs instead of capital expenditure, but of course I wouldn't be advocating tax dodging as such!

If you put down as maintenance then you can't reclaim the vat (well you can but if audited you'll be in serious trouble) also a figure of say 30k a year for a few years for "maintenance" will stick out and set red flags flying in revenue.

kevthegaff · 23-09-2013 09:50PM

so your better off saying its a new shed, what will be the capt allowance say on 50k over 8 years. And should you put the loan over the same period?

KCTK · 23-09-2013 10:41PM

kevthegaff wrote: »

so your better off saying its a new shed, what will be the capt allowance say on 50k over 8 years. And should you put the loan over the same period?

€6250 per year over d 8 years so if your on d higher rate of tax it'll be worth a few bob every year, length of loan is really up to yourself and what amounts of payment each year suit ( and that bank agree!!)

Farmer Pudsey · 24-09-2013 12:17AM

If the shed cost 80K including vat you expect to claim back about 10.5K on vat. I am assuming that not all vat will be at 13%( I am calculating on an average vat rate of 15%) You would have capital allowances of 8680/year for eight years at the high tax rate this is worth about 3500/year in a tax savings. It is also a figure that you can calculate into your accounts year on year. 50K over 8 years will cost about 7750/year(I am assuming of about a 6% interest rate)over so tax relief will account for half of cost approx.

Building shed tax implications?

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