PAYE tax & farming

[Jimmy Bond]

My main income is via PAYE but I have some small income from a farm that I use (on a part-time basis). How do I make a return on this for the calendar year 2005? Do I use the normal Form 12 and if so, where should I include the relevant information? Do I show nett profit only for this farming activity?

 

[jfitzer]

Have you considered checking if this farming income falls in the category of Hobby Farming which may not have any tax liabilty. It really depends on the level and what type of farming it is, i.e cattle sales, livery. You may wish to consult an accountant on this matter. I don't know the in's and out's of it but there is provision for Hobby Farming, its worth considering.

 

[JOHN L]

If your profit from farming is € 3175 or less per annum you can pay tax on your profits through the PAYE system by having your credits / rate band reduced. You can complete form AG 12 to return your income each tax year.

If your profits exceed € 3175 then you must complete a form 11 each year and pay preliminary tax the same as all self employed persons.

 

[ubiquitous]

Form AG12 was abolished about 5 years ago. Completion of Form 11 is obligatory. Get professional advice unless you know what you are doing.

 

[Ravima]

when getting professional advice, go to someone who specialises in farm accounts. some accountants do not specialise in farm a/c's and may not be in a position to claim al lthe reliefs and allowances you may be entitled to. ifac were set up by farmers for farmers.

 

[roadrunner]

It should be noted that if the farm enterprise is running at a loss - the loss can be offset against Income tax paid.