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'Wages paid must be genuinely earned on the farm' - Revenue guidelines on wages paid to family members

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There has been clarification on payments to family members

There has been clarification on payments to family members

There has been clarification on payments to family members

The Revenue Commissioners have provided clarification on certain aspects of paying wages to family members. The main thrust of the clarification is that the wages paid must be genuinely earned on the farm.

It is common practice on many farms that the spouse and children will help out with the daily farmyard tasks and, in return, they are paid a wage which is claimed as a deduction against profits.

Under Irish tax legislation, a deduction is only available in respect of wages paid which are 'wholly and exclusively' for the purpose of the trade. For example, it is common practice for a spouse to be paid a wage for their involvement in the day-to-day running of the farm business.


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