When it comes to finances, we all need a little guidance. Every year, John Lowe publishes his guide, The Money Doctor, with invaluable and up-to-date advice for those living and working in Ireland. As well as a specific chapter dedicated to farmers, there is also detailed information on capital gains tax and capital acquisitions tax. Get your head around this advice and 2017 could be your best financial year yet.

1 Money is a Family Affair

Of all the subjects that couples, and families fight about, money can be the most contentious for the household. It’s time to get a family financial plan going. Dialogue is essential, so plan a money meeting for the new year and build a joint approach to money. Discuss what you want to achieve this year – whether it’s a new car or holiday– and what you want to achieve in the long run, then share out the chores to obtain this.

Tasks include paying household bills, filing and organising paperwork, checking the bank accounts and reconciling the balances – and even the weekly shop. When everyone knows what they are responsible for, there is less chance of things falling through the cracks.

2Getting Help

Making a plan and assigning tasks is all well and good, but sometimes you need that extra bit of guidance, someone who can take an objective look at your finances and give expert but independent advice.

John says the only solution is to get your advice from someone who isn’t under any pressure to sell anything, but is in a position to do what is best for you. In other words, you may well need to pay for this advice.

Many farmers employ the services of specialist farm finance advisers. However, if you are looking for more personal advice, make sure to find someone who is qualified to deal with your needs. Check what services they are authorised to provide and at what cost, as well as ensuring they are regulated by the Central Bank.

Financial advisers must give you a terms of business booklet, which outlines their terms, fees chargeable, appointments with product providers, Central Bank of Ireland authorisation and notification of the Investors’ Compensation Act.

3Making a Complaint

Irish Country Living receives emails from consumers throughout the year about financial situations that have left them in a quandary. So many of these are in relation to making complaints – but these vary massively, from a faulty product to paying a deposit for college accommodation when a student has opted to attend a different institution. John Lowe sets out how to complain in all different circumstances.

For example, if you’re unhappy with your bank, building society or credit union, it may be time to appeal to the Financial Services Ombudsman, which also covers insurance complaints and is authorised to make awards of up to a limit of €250,000.

Turn to the financial regulator if you’re having issues with a financial adviser. If you have been turned down for a loan, it is probably due to your credit rating, and two bureaus – the Irish Credit Bureau and Experian Ireland – are legally obliged to advise you of the information they hold about you.

You never know when you are going to be let down, and its useful to have that information to hand.

4How to Enjoy the Best Banking in Ireland

John says, the first step to enjoying better banking is to understand how banks operate. Banks don’t make their money from day-to-day banking. They get their best profits from selling you products such as mortgages and credit cards. Remain savvy and you can get the best banking without paying high prices.

For example, only buy the services and products you need from your bank. Don’t allow them to persuade you into buying something you don’t require. If you are in a relationship, for instance, ask whether both of you really need a credit card.

Make sure the services and products you buy are competitively priced. You may have your current account with one bank but another may be offering a much more affordable loan. The era of “relationship banking” is long gone, and loyalty doesn’t pay. It may take some time and effort, but look objectively at your bank and ask if they are really offering you the best deal.

Finally, ensure you avoid breaking terms and conditions attached to any product – the consequences will undoubtedly be expensive.

5Capital Gains Tax

Just because capital gains tax – at a flat rate of 33% – is much less than it used to be (at its peak it was 40%), you still don’t want to pay more of it than you have to, says John.

Although a good solicitor will be aware of this information, it’s good to know in your own planning stages that you do not have to pay capital gains tax from the sale of your principal residence, including up to one acre of land.

However, if you sell your home for development, then you will be taxed on the profit attributed to the “development value”.

If you’ve bought a home for a dependent relative, then any gain you make on the sale of the property would be free of tax, as well as a house site that is given to a child who builds his or her private residence on it, providing that site is not worth more than €500,000.

Familiarising yourself with the details of capital gains tax will help you be better equipped for the future. You also want to ensure that any gifts and inheritances aren’t subject to tax, and the Money Doctor has a full chapter on capital acquisitions tax.

6Special Advice for Farmers

You don’t often come across an Irish financial book that has a chapter especially dedicated to the unique finances associated with farming, but as John is married to a farmer’s daughter, he understands the intricacies involved.

There are so many details that farmers need to be aware of, and it’s handy to have everything together in one place. For example, a flat rate of 5.2% VAT applies to supplies of agricultural goods or services. However, if you engage in any other services and your turnover exceeds €37,500 in a calendar year, normal VAT rates will apply.

Keep in mind, though, that if you are a flat rate (5.2%) farmer, you can also reclaim this VAT on any expenditure incurred in the construction or improvement of farm buildings, farm structures, fencing, drainage and land reclamation.

You’ll also find information specifically about farming in relation to capital acquisitions tax, capital gains tax, stock relief, stamp duty and farm leasing.