Switch herd number tax implications

Surely turn over is more than 12k? that sized farm could easily have 12k plus in payments alone? Have you had a proper look at the accounts? Is it 12k net profit per year?

Part of the issue will be investment in the farm is typically capitalised ….so against tax over 5-15 years rather than that year, which might not suit you, but if you invest you build up the capital allowances over time.

Sometimes it’s better give 50 percent to the tax man than 100 percent to john Deere was a phrase I heard also though that stuck me. Spending purely to avoid tax is foolish. But if investment is needed it makes sense.

Another option maybe to pay a small salary to your father (assuming he is only on a state pension that many older farmers are) as he might have a part of his tax free allowance unused. Handy and justifiable way to shelter 5k but the money does need to end up in your fathers bank account. Ned to do a payroll run on Ros and bank transfer every month. It’s not as complicated as it sounds.

From an accounting POV you do need to show a profit once every 3 ish years to be able to demonstrate a viable business etc to the revenue.

You be putting in Motoring ( 2/3 of car, diesel, car tax, insurance, maintenance etc), 2/3's of phone and electricity, cat&dog food, what ever tools you buy. You will have your normal running costs silage, ration a bit of tractor diesel and maintenance. As well any farm investment will be deprecated.

It's easy enough to bury 15-20k

You are right to a certain degree but Revenue need to see your unprofitable enterprise regardless. I think there's a fine for non disclosure and you will be named and shamed. Might not be a good omen when you look for finance in the future from Banks etc.