• Reduces taxes on farm profit from as much as 55pc down to 12.5pc.
• This has the potential to save a farmer with a taxable income of €80,000 over €12,000/yr in tax.
• Can almost double the money available to pay down business loans by reducing the tax take on loan repayments from 55pc to 12.5pc.
• Annual accountancy charges often €1,000 higher.
• Landowners not eligible for tax relief on lease income to companies.
• New taxation issues to look out for, such as benefit-in-kind on vehicle owned by the company, termination of PAYE tax credits, and more complicated capital tax allowances.
• If you need extra money from the company above €42,000, you will become victim to a heavier 'double hit' of 12.5pc on company profits along with a further 55pc income taxes when USC and PRSI charges are included.