Farmers on income averaging will have the option, in a bad year, of only paying the tax due for that year. Any outstanding tax would then fall due in subsequent years.
The measure is one proposed by the IFA in their pre-Budget submission. It improves cashflow in a year when incomes drop suddenly, but the tax bill remains similar to previous better income years due to the effects of averaging.
This new option will be immediately available to farmers, and will be of particular assistance to the tillage and dairy sectors, with falling incomes and impending tax bills.
ADVERTISEMENT
It is the first of a range of measures being introduced to combat low incomes and the effects of farming on Brexit. Minister Noonan made specific reference to the exposure of the agri-food sector to Brexit.
IFA also proposed that income averaging be extended from three to five years, and be made available to those whose spouse is self-employed. It is not yet clear whether these requests will be granted - no mention of them was made in the budget speech.
This content is available to digital subscribers and loyalty code users only. Sign in to your account, use the code or subscribe to get unlimited access.
The reader loyalty code gives you full access to the site from when you enter it until the following Wednesday at 9pm. Find your unique code on the back page of Irish Country Living every week.
CODE ACCEPTED
You have full access to the site until next Wednesday at 9pm.
CODE NOT VALID
Please try again or contact support.
Farmers on income averaging will have the option, in a bad year, of only paying the tax due for that year. Any outstanding tax would then fall due in subsequent years.
The measure is one proposed by the IFA in their pre-Budget submission. It improves cashflow in a year when incomes drop suddenly, but the tax bill remains similar to previous better income years due to the effects of averaging.
This new option will be immediately available to farmers, and will be of particular assistance to the tillage and dairy sectors, with falling incomes and impending tax bills.
It is the first of a range of measures being introduced to combat low incomes and the effects of farming on Brexit. Minister Noonan made specific reference to the exposure of the agri-food sector to Brexit.
IFA also proposed that income averaging be extended from three to five years, and be made available to those whose spouse is self-employed. It is not yet clear whether these requests will be granted - no mention of them was made in the budget speech.
If you would like to speak to a member of our team, please call us on 01-4199525.
Link sent to your email address
We have sent an email to your address. Please click on the link in this email to reset your password. If you can't find it in your inbox, please check your spam folder. If you can't find the email, please call us on 01-4199525.
ENTER YOUR LOYALTY CODE:
The reader loyalty code gives you full access to the site from when you enter it until the following Wednesday at 9pm. Find your unique code on the back page of Irish Country Living every week.
SHARING OPTIONS