TAX

We have been on a good few Teagasc arranged tours and always claimed it against tax

Or the Highland show and welsh show

I paid for my ploughing match thicket from the farm account this year.

You can take a lump sum out tax free at retirement as far as I know. Can't remember the figure exactly but remember thinking it's big when I read it in a booklet one time

Empty vessels, most noise ....... good analogy,

Thought it many times

I did not say I was claiming 70%, I gave the band it is in. We are in a partnership both my spouse and myself. The jeep is not a big LC but a RAV. the distance between the house and farm is 12-14 miles depending on which way you go. That gives over 10K miles visiting it just once every day. At this stage I draw my own cattle both to the factory and too and from the mart most of the time. We have a few acres around the house which cattle are on as well.

Kids are all grown up and have there own cars for the last 5 years. I was not tearing into what another poster was paying there children I was pointing out what he would have to justify to revenue just like you are doing now. The oil is only part of our heating costs, there is coal bought and wood that is burnt (all windfall or trimmings of trees). I only show the oil part as a cost. We do not change vehicles often. Everything goes through the books.

Farming is using rules and allowances that are used by business right accross the country. Just because a buisness is less profitabe than other sectors is no reason it cannot used similar writedowns, Farming has the added advantage/disadvantage in that all sales are visible as are all purchases. Its a small margin game. it would not take much for many farmers to decide ''F@@k this for a game of soldiers I off'' similar to what small landlords are doing at present

Some accountants take the easy way out. They never want a situation where a client has an audit and they have actually to do a bit of work at that audit.

It not just that. If you driving a small or any jeep, to an extent even a car you burn fuel and you have a lot more wear and tear than normal driving. My fuel use goes from 40 to 26mpg when I use the livestock box.

I also use it or my better half a car when feeding ration during the summer I hitch the trailer in and it's a lot easier than climbing up and down off a tractor especially if you have to open and close a few gaps.

My accountant put 2/3's of the car and jeep expenses. He dose not differencate, it stops me loading the diesel and running expenses onto a vehicle I can claim 100% on.

So it ends up much the same

I am leasing part of my farm this year, however I am wondering about the cattle sales, this year I have about 30 extra cattle to sell at say an average 1500 which is circa 45k, I won't be replacing these cattle, does that mean I will have to pay additional tax?

What was the stock value at the start of the year. You substract that from your costs and that is your taxable income.

So, lets say, the farmer owns/drives a jeep and a car and the spouse owns/drives own car. Now, i'm talking about capital allowances here only. Not motor expenses. That's a different but similar issue.

We could claim fully on the cost of the jeep over 8 years.

We would claim 2/3's of the farmers car over 8 years.

We would claim 1/4 of the spouse's car max. This would be in situations where the farmer was full time farming.

If both have own job, it would be very difficult to claim capital allowances and get away with it during an audit.

If no jeep is owned. We could claim 3/4's of the cost of the farmers car and 1/2 of the spouse's car. Its common sense really. At the end of the day, Revenue will only make an issue out of it if its obliviously excessive.

In summary, its best to be cautious. Especially with the recent approach from Revenue. In the last month or so, there has been a change in their approach to everything. The good times, Revenue wise at least, are over for a while.

If you are a full time farmer I can see little issue with a jeep (claim everything possible) however if you are in employment elsewhere I'd agree you need to be very careful what you are putting through the books.

Yes. A jeep is 100% claimed as a farm capital allowance and the running costs as a farm expense.

My accountant wants to talk to me about incorporation. It's a big step for a small farmer with an uncertain future the way environmental regs and everything else is going.

Don't think it's ideal for a small farmer.