Tax return 2007 problem

[Seabass]

Hi All

I inherited a small farm in 2005. Due to red tape with the department of agriculture, I did not receive any payments (single payment etc) until last year. Essentially there was no income from the farm in 2005 and 2006 but some expenses. I did not submit a return for 2005 and 2006.

I received payments for 05, 06 and 07 during the course of 2007 and am preparing to submit a return. The problem as I see it is, I can now only get relief against this total from expenses incurred in 2007 as any expense incurred previous to that fall outside of the tax year. However, payments made last year for 05 and 06 clearly state that they are for those years. I have plenty of expense receipts for 05 and 06. In Summary I will have to pay more tax this year based on how the payments were received.

Is there any way around this issue or is it just a case that the payments were received in 2007 so they are taxed in 2007, i.e. tough luck !

Cheers

 

[ubiquitous]

3 solutions:

1. Prepare separate accounts for all years & submit to Revenue with tax returns for each year.
2. Prepare combined accounts for entire period & submit to Revenue with tax returns for each year.
3. Get professional help if you don't know what you are doing and are at risk of not claiming all your entitlements.