Can I write off Tax against a farm loss?

B

BabyMan

Guest
hi there

I've just taken up farming as a part time career. I'm also a full-time PAYE worker.

Anyone know if its possible to get some of the tax I pay through PAYE back if I'm making a loss in the farm? Or are these totally seperate?
Is an accountant the best person to ask for advice on this?

Thanks
B
 
Yes your loss on the farm is offset against the PAYE income and this may then generate a tax refund. Except in limited circumstances your farm loss relief will be denied if you do not make a profit in year 4 of the farm trade.
 
you should engage an accountant. If you are a member of IFA, you get a discount in year 1 on fees with IFAC, who seem to know about farming. Some accountants are not up to speed with allowances etc for farming.
 
Definitely you need an accountant to address this, and make the most of the situation. IFAC are excellent for farm accounts, it's a specialised area.
 
You need a tax adviser!! Not an accountant!

Accountants prepare accounts and audit accounts and some also claim to be able to give the same level of advise on tax issues as tax advisers!!!! Not true!

Have you just start the farm to generate losses and then offset?
 
Iceman732 said:
You need a tax adviser!! Not an accountant!

Accountants prepare accounts and audit accounts and some also claim to be able to give the same level of advise on tax issues as tax advisers!!!! Not true!

Have you just start the farm to generate losses and then offset?
Click to expand...

The OP needs to make returns to revenue. He/she would be well advised to engage an accountant.
 
Iceman732 said:
You need a tax adviser!! Not an accountant!

Accountants prepare accounts and audit accounts and some also claim to be able to give the same level of advise on tax issues as tax advisers!!!! Not true!

Have you just start the farm to generate losses and then offset?
Click to expand...


Most acountants in general practice would be well qualified and capable of preparing and submitting accounts and tax returns for a part-time farmer, full time PAYE person. Farmers have certain accounting and taxation entries which may be different to other businesses but nothing that most practices would not be well able to handle. Just ensure to ask when making initial contact that they have a good level of expertise in farming related matters.
 
no not at all, I've inherited the farm and really enjoy it but its not big enough to work at it full time.
 
Most accountants are actually tax advisers............well I am anyway !
 
While most accountants advise on tax, they mostly do not have taxation qualigficiations. Look for financial advisors with AITI as a qualification, not to be confused with accounting technician qualifications with similar letters.

Accountants calling themselves tax advisors are as misleading as book-keepers calling themselves accountants.

But to answer your question; yes, in the main PAYE profits can be written against farming losses - but engage someone who knows what they're doing (and most accountants in practice will be well-versed with your circumstances).
 
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