With companies being used by farmers the following is important to note:

  • Ensure you lodge your corporation tax return on time as a late return can result in penalties and loss of reliefs.
  • Ensure the company pays you a salary. This will enable you to get benefits paid for by the company such as health insurance, life insurance and club subscription. The benefit will be taxed on you as salary but will be taxed as a cost to the company.
  • If you take out the funds yourself and pay it yourself it will cost you more in tax.

    • 46 Family wages:

    You can pay wages to your family if they are involved in the business. Ensure you are paying the correct rate of PRSI.

    47 Annual small benefit:

    The company can pay you or any of its employees a one off voucher of €500 each year tax and PRSI free.

    48 EIIS:

    Can you raise funds to invest in your company and allow the investors avail of EIIS?

    Do you or your family have off farm income? This money if invested in the business could provide finance to allow you to expand, purchase land etc.

    Very strict rules and conditions apply but if the conditions are met tax relief is available subject to annual and an overall limit.

    50 Rent of land to the company:

    Review the rental of land to the company. A payment of salary may be a better option.

    Read more from our focus on tax saving tips

    Introduction: the top 50 tax saving tips for farmers in 2017

    Click here for tips on VAT

    Click here for tips regarding Stamp Duty

    Click here for tips regarding Capital Gains Tax

    Click here for tips regarding Income Tax

    Click here for tips regarding Gift Tax