Save Â¤10k in tax by flicking company switch
Huge numbers of farmers are opting to incorporate their farming businesses in an attempt to reduce their tax bills.
A dairy farmer with a taxable income after allowances of €80,000 will typically save more than €10,000 in tax by turning his business into a company, according to agri-consultant, Martin O'Sullivan.
"I see plenty of farmers with 100 cows that can benefit significantly from incorporating their businesses," he said.
However, livestock and tillage farmers will be next to jump on the company band-wagon, according to IFAC's Declan McEvoy, who says that incorporation is the hottest topic among IFAC clients at the moment.
"Most non-dairy farmers with decent sized single farm payments (SFPs) were concerned about locking themselves into a corporate structure when there was still a possibility of the SFP being dismantled after 2013," said Mr McEvoy.
"But with the SFP looking stable until 2019 and incomes rising, more of these guys are going down this route."
Other issues that previously discouraged farmers from incorporating their businesses are also beginning to recede according to Mr O'Sullivan.
"Almost every farmer thought they had to be registered for VAT, which is totally untrue," he said.