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wellington womble
Joined: 08 Nov 2004
Posts: 15051
Location: East Midlands
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 Posted: Tue Mar 22, 05 11:07 pm Post subject: smallholding and the tax man! |
 
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I know some people who post here are running small farms/smallholdings as a business, and I'm sure that their accounts are business ones, but I was wondering about smallholdings and whether people run them as businesses.
If you did, I'm sure lots of expnses, like the mortgage interest and feed and vets bills and what-have-you would be allowable tax expenses. However, the flip side is that you would have to 'pay' your business for the value anything you actually produced - effectively buying your own livestock back. Is this economic, or do most people run their smallholding as an expensive hobby (according the taxman) and take any sales you do make in cash!?
Also, would the taxman have any concerns if the business consistently running a business at a loss, year on year. I mean, as long as you could provide the income, you should make a gain on the reduced tax on allowable expenses. I bet they wouldn't allow it, they must have thought of it if I have! |
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Rob R
Joined: 28 Oct 2004
Posts: 31902
Location: York
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| Posted: Tue Mar 22, 05 11:20 pm Post subject: Re: smallholding and the tax man! |
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| wellington womble wrote: |
I know some people who post here are running small farms/smallholdings as a business, and I'm sure that their accounts are business ones, but I was wondering about smallholdings and whether people run them as businesses.
If you did, I'm sure lots of expnses, like the mortgage interest and feed and vets bills and what-have-you would be allowable tax expenses. However, the flip side is that you would have to 'pay' your business for the value anything you actually produced - effectively buying your own livestock back. Is this economic, or do most people run their smallholding as an expensive hobby (according the taxman) and take any sales you do make in cash!?
Also, would the taxman have any concerns if the business consistently running a business at a loss, year on year. I mean, as long as you could provide the income, you should make a gain on the reduced tax on allowable expenses. I bet they wouldn't allow it, they must have thought of it if I have! |
You would usually deal with 'paying' yourself as private drawings in the contra account, but generally on such a scale you are best not to bother the tax man about it & continue as a private concern. |
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wellington womble
Joined: 08 Nov 2004
Posts: 15051
Location: East Midlands
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