Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Tax Bill!

  • 19-10-2016 08:05AM
    #1
    whelan2
    Registered Users, Registered Users 2 Posts: 30,560 ✭✭✭✭


    Going to be a tough one this year. 5 year averaging helped me a good bit as 2012/3 were crap. Hows everyone else getting on? Spoke with someone yesterday and he still doesnt know what he owes. Pity the deferral system wont be in this year , but it all has to be paid in the end:mad:


«13

Comments

  • #2
    mahoney_j
    Registered Users, Registered Users 2 Posts: 11,634 ✭✭✭✭mahoney_j


    whelan2 wrote: »
    Going to be a tough one this year. 5 year averaging helped me a good bit as 2012/3 were crap. Hows everyone else getting on? Spoke with someone yesterday and he still doesnt know what he owes. Pity the deferral system wont be in this year , but it all has to be paid in the end:mad:

    Refund on the way but prelim tax will be up a bit on what I paid last year .ive known since early March last years position


  • #3
    A cow called Daisy
    Registered Users, Registered Users 2 Posts: 1,301 ✭✭✭A cow called Daisy


    Biggest tax bill in years - but knew that was going to be the case at end of last year as all bills were cleared and still had few euro for myself. All due to reducing stock numbers the previous year so less inputs and similar output.
    And I'm not into buying something I don't need to reduce a tax bill.
    Tax issue be different for 2016 accounts


  • #4
    Mooooo
    Registered Users, Registered Users 2 Posts: 8,609 ✭✭✭Mooooo


    You can use this year's figures to reduce the preliminary tax you pay for next year's bill iykwim. Instead of the preliminary being the same as 15 tax once you have are close enough to what the actual 16 tax bill will be you can pay that figure as the preliminary figure


  • #5
    Buford T. Justice XIX
    Closed Accounts Posts: 20,633 ✭✭✭✭Buford T. Justice XIX


    whelan2 wrote: »
    Going to be a tough one this year. 5 year averaging helped me a good bit as 2012/3 were crap. Hows everyone else getting on? Spoke with someone yesterday and he still doesnt know what he owes. Pity the deferral system wont be in this year , but it all has to be paid in the end:mad:
    The deferral is in this year. But it can only be used once every 5 years, I think.

    Our accountant took a load of clients off averaging this year as it's supposed to be helping us?


  • #6
    lakill Farm
    Registered Users, Registered Users 2 Posts: 4,735 ✭✭✭lakill Farm


    I found income averaging to be very hit and miss , especially the older 3 year model.

    Tax bills on average are lower than last year but cashflow is tighter so they are more of a struggle for most self employed


  • Advertisement
  • #7
    blue5000
    Moderators, Society & Culture Moderators Posts: 12,821 Mod ✭✭✭✭blue5000


    Stock valuations tend to be on the low side, so there might be a bit of leeway there. A lot of us had cap expenses in 08-09 they are coming to an end. But if there were bad years, those allowances may not have been used and just carried forward, check it out with your accountant, you dairy lads have my sympathy being in the enviable position of having to pay tax:D

    If the seat's wet, sit on yer hat, a cool head is better than a wet ar5e.



  • #8
    whelan2
    Registered Users, Registered Users 2 Posts: 30,560 ✭✭✭✭whelan2


    Buford T. Justice V wrote: »
    The deferral is in this year. But it can only be used once every 5 years, I think.

    Our accountant took a load of clients off averaging this year as it's supposed to be helping us?
    Are you sure its in this year, accountant said its not in until next year


  • #9
    Buford T. Justice XIX
    Closed Accounts Posts: 20,633 ✭✭✭✭Buford T. Justice XIX


    whelan2 wrote: »
    Are you sure its in this year, accountant said its not in until next year
    I'm nearly certain. There was an article in one of the farming papers saying that it was available this year and my accountant told me to pull out of income averaging rather than use that deferral.


  • #10
    Jexbullcalf
    Closed Accounts Posts: 49 ✭Jexbullcalf


    Anyone in a limited company? Thinking of heading down this road next yr myself as milk could be moving upwards.
    Fecking tax man is making more money out of the farm then me!!!


  • #11
    lakill Farm
    Registered Users, Registered Users 2 Posts: 4,735 ✭✭✭lakill Farm


    Jexbullcalf wrote: »
    Anyone in a limited company? Thinking of heading down this road next yr myself as milk could be moving upwards.
    Fecking tax man is making more money out of the farm then me!!!

    after having 3 strong enquires relating to operating the farm as Limited company.

    you really need to look at it on a one to one individual approach.

    Personal circumstances, borrowing, future borrowings and facilities.


  • Advertisement
  • #12
    cute geoge
    Registered Users, Registered Users 2 Posts: 3,259 ✭✭✭cute geoge


    What numbers are we talking about to make it worthwhile to operate as ltd. company for a single dairy farmer.I am crucified with last year's tax bill and most of my capital expenses are now nearly used up as well .


  • #13
    Keepgrowing
    Registered Users, Registered Users 2 Posts: 2,485 ✭✭✭Keepgrowing


    I'm not sure you should ever make changes just for tax purposes. By all means limit it.

    We changed things here but took education, sucession, future borrowing and tax planning into account when doing. Spent 2 years transitioning to do it the way we wanted.

    All I say is consider more than just tax of making any changes


  • #14
    rangler1
    Closed Accounts Posts: 6,497 ✭✭✭rangler1


    Keepgrowing wrote: »
    I'm not sure you should ever make changes just for tax purposes. By all means limit it.

    We changed things here but took education, sucession, future borrowing and tax planning into account when doing. Spent 2 years transitioning to do it the way we wanted.

    All I say is consider more than just tax of making any changes

    A lot of mckey mouse operations became Companys because it was fashionable in the last few years and beginning to doubt their decision now, A lot of the push was coming from IFAC, probably because of the extra work they got out of it


  • #15
    Bullocks
    Registered Users, Registered Users 2 Posts: 5,893 ✭✭✭Bullocks


    Keepgrowing wrote: »
    I'm not sure you should ever make changes just for tax purposes. By all means limit it.

    We changed things here but took education, sucession, future borrowing and tax planning into account when doing. Spent 2 years transitioning to do it the way we wanted.

    All I say is consider more than just tax of making any changes

    What do you mean by education and succession ? How did it fit in with the tax planning ?


  • #16
    rangler1
    Closed Accounts Posts: 6,497 ✭✭✭rangler1


    Bullocks wrote: »
    What do you mean by education and succession ? How did it fit in with the tax planning ?

    You'd need to be optimistic to put those two in the one sentence.....will there be another generation farming if there's a proper education available to them.


  • #17
    Bullocks
    Registered Users, Registered Users 2 Posts: 5,893 ✭✭✭Bullocks


    rangler1 wrote: »
    You'd need to be optimistic to put those two in the one sentence.....will there be another generation farming if there's a proper education available to them.

    If they have any sense then no , but alot of us wouldnt be bursting with sense when it comes to farming :D
    It wouldnt really be viable on our farm for the kids to bother but you never know whats coming down the line either


  • #18
    Keepgrowing
    Registered Users, Registered Users 2 Posts: 2,485 ✭✭✭Keepgrowing


    rangler1 wrote: »
    You'd need to be optimistic to put those two in the one sentence.....will there be another generation farming if there's a proper education available to them.

    Lol
    Proper education is the building block for proper farmers.

    Succession is about more than farming it's about the transfer of high value assets and that takes planning, not the day you get sick but years in advance.


  • #19
    J.O. Farmer
    Registered Users, Registered Users 2 Posts: 2,574 ✭✭✭J.O. Farmer


    rangler1 wrote: »
    You'd need to be optimistic to put those two in the one sentence.....will there be another generation farming if there's a proper education available to them.

    Depends on your definition of proper education. Maybe it could mean sending the smart child to ag college and the idiot children to the priesthood or the nuns.

    I got a proper education and went to college got a good degree and postgrad and I'm still farming although it was never and will never be a full time enterprise here.
    I have siblings who were less interested in academics and are successful too in their areas but no interest in farming.
    My point is that a proper education won't put off a successor to carry on in some capacity if they have the interest and the lack of it won't keep them at it if not interested.


  • #20
    Welding Rod
    Registered Users, Registered Users 2 Posts: 244 ✭✭Welding Rod


    Thought there was no money in farming. Where's all these tax bill coming from?
    If you want no or low tax bills try sucklers. They give plenty headaches but tax isn't the bigger one


  • #21
    rangler1
    Closed Accounts Posts: 6,497 ✭✭✭rangler1


    J.O. Farmer wrote: »
    Depends on your definition of proper education. Maybe it could mean sending the smart child to ag college and the idiot children to the priesthood or the nuns.

    I got a proper education and went to college got a good degree and postgrad and I'm still farming although it was never and will never be a full time enterprise here.
    I have siblings who were less interested in academics and are successful too in their areas but no interest in farming.
    My point is that a proper education won't put off a successor to carry on in some capacity if they have the interest and the lack of it won't keep them at it if not interested.

    Think you;ve answered your own query there, I'm referring to fulltime farming, you're talking about farming instead of laying golf on a Saturday.
    Each to their own, but if you're on a good salary and doing parttime farming well and making maybe 10 or 20000 out of it, Whatever about getting disillusioned with the extra work, you'd definitely cop on when you pay the 52% tax on the profits and realise the time it takes you away from real life


  • Advertisement
  • #22
    J.O. Farmer
    Registered Users, Registered Users 2 Posts: 2,574 ✭✭✭J.O. Farmer


    rangler1 wrote: »
    Each to their own, but if you're on a good salary and doing parttime farming well and making maybe 10 or 20000 out of it, Whatever about getting disillusioned with the extra work, you'd definitely cop on when you pay the 52% tax on the profits and realise the time it takes you away from real life

    See that's where the system of farming may change in future generations. The full time dairy farm may change to something else more suited to part time with more help hired in.
    It depends on how you look at farming. If you enjoy farming more than playing golf paying 52% on profit might be better than spending money on golf.
    On the other hand if you prefer golf and are disillusioned with the extra work then farming isn't for you and you'll know long before you reach leaving cert.


  • #23
    kowtow
    Registered Users, Registered Users 2 Posts: 6,135 ✭✭✭kowtow


    "Only doing it part time" is not a solution to the future of an industry.

    If we can't have a farming industry which is a place that our educated children will be proud to work then we have only ourselves (and perhaps our parents) to blame.

    We need to stop bemoaning it and start doing something about it.


  • #24
    Bullocks
    Registered Users, Registered Users 2 Posts: 5,893 ✭✭✭Bullocks


    Welding Rod wrote: »
    Thought there was no money in farming. Where's all these tax bill coming from?
    If you want no or low tax bills try sucklers. They give plenty headaches but tax isn't the bigger one
    Its probably lack of income making it hard to keep back money for tax moreso than the tax itself . Im a fecker for not planning ahead with regards to tax but I'm slowly getting better as the years go on


  • #25
    Panch18
    Closed Accounts Posts: 2,471 ✭✭✭Panch18


    kowtow wrote: »
    "Only doing it part time" is not a solution to the future of an industry.

    If we can't have a farming industry which is a place that our educated children will be proud to work then we have only ourselves (and perhaps our parents) to blame.

    We need to stop bemoaning it and start doing something about it.

    Why isn't it the future though Kowtow? Plenty of European countries have dairy farmers who are part time. With tillage and beef it is becoming near impossible for either to provide a proper sustainable household income

    Now it's a major problem, because the guy who has a job doesn't need to make any money from the place, the full timer has to make his living. So part timer can sustain much longer periods of low prices. That's just the way it is. Going part time might actually keep farmers going longer than being full time


  • #26
    Keepgrowing
    Registered Users, Registered Users 2 Posts: 2,485 ✭✭✭Keepgrowing


    Could the mods seperate this into an "education" thread on f&f. Would be very interesting.

    Just a thought


  • #27
    J.O. Farmer
    Registered Users, Registered Users 2 Posts: 2,574 ✭✭✭J.O. Farmer


    kowtow wrote: »
    "Only doing it part time" is not a solution to the future of an industry.

    If we can't have a farming industry which is a place that our educated children will be proud to work then we have only ourselves (and perhaps our parents) to blame.

    We need to stop bemoaning it and start doing something about it.

    I think it's not an issue of pride but more financial. Compare the average industrial wage with the average farm income. Perhaps big dairy farms can compete or maybe tillage? But the other sectors not so much unless we go down the poultry route of contract rearing for meat factories and I don't see that happening.

    You're right though we do need to do something.


  • #28
    Buford T. Justice XIX
    Closed Accounts Posts: 20,633 ✭✭✭✭Buford T. Justice XIX


    Education and farming thread opened so all discussion on education to go over there, please.

    http://www.boards.ie/vbulletin/showthread.php?t=2057664606#


    Right all, back to tax discussion:)


  • #29
    Mooooo
    Registered Users, Registered Users 2 Posts: 8,609 ✭✭✭Mooooo


    Anyone apply for vat refund recently.? Heard it's taking up to 8 weeks. Have a bit to come back. Bit of work I did last year replaced capital allowances from 09 along with the hit of preliminary I paid last year has eased this year's bill. Id say lads that had a big increase in output last year will have a bit to deal with now, despite the drop in milk price.


  • #30
    farmerjj
    Closed Accounts Posts: 1,088 ✭✭✭farmerjj


    Ya its taking 6 to 8 weeks for the refunds(at least it was back in october)


  • Advertisement
  • #31
    freedominacup
    Registered Users, Registered Users 2 Posts: 7,920 ✭✭✭freedominacup


    farmerjj wrote: »
    Ya its taking 6 to 8 weeks for the refunds(at least it was back in october)

    Most of the year so. It was taking that long in late spring. Get the finger out and you'll have a nice shot of santy money.


Advertisement