Published 14/12/2010 | 05:00
The decision to transfer from a sole trader to a limited company is a difficult and complex area and should not be taken in haste.
The benefits of short-term tax savings may or may not outweigh the long-term benefits.
It is important to note that if you have a situation with a husband, wife and a family member working together on the farm, they are entitled to earn €98,400 between them before they enter the higher rate band of tax.
Thus, a limited company may not provide a significant tax saving in this type of family situation.
Careful tax planning and professional advice should be sought before you consider switching.
Joseph Wall is a taxation specialist with Owen Sweetman & Co in Balbriggan, Co Dublin