Married farmer
David is milking 80 cows in Co Carlow. His wife Mary does not work, so the farm generates the full family income. He has earned an average of €66,000 in the last three years and this will fall to €24,000 this year due to the weather challenges in 2018.
Benefit
If on income averaging, David could use the step out for 2018. He will be taxed on the €24,000 but the tax will be deferred on the average profit. The benefit of the increased tax band, the earned income credit, the home credit and the reduction in USC will all have an impact.
Net effect of budget at €24,000 = +/-€222.Single farmer
Meanwhile, Aoife is a single dairy farmer in Co Sligo, also milking 80 cows. While the weather affected her business, the costs have not risen as much and she expects to have an income of €45,000 this year, down from €54,000 last year.
Aoife is hoping to avail of the low-interest loan scheme to put in a new calf shed.
Benefit
Capital allowances on the shed, which will shelter income.
She will benefit from changes to USC, earned income credit and the increased tax band.
Overall benefit = €427.Mary is a suckler farmer with 20 cows and earned €10,000 last year. Her husband Ben is a garda earning €42,000. They have three children, two in college and one in secondary school. Mary is hoping a new suckler cow/calf payment will help improve her returns.
Benefit
The net tax effect of the budget tax-wise is nil as she is below the USC threshold. The increased tax band won’t be of benefit and the increase in earned income credit will not be of benefit.
The new suckler payment of €40 per cow will benefit her.
Overall benefit = a net increase in income of €800. John farms 150ac, 100ac of which is owned and the rest is on a long-term lease. Last year, his tillage enterprise had an income of €35,000 which he expects to stay the same this year. He has an empty house on an out-farm and is hoping for some budget incentives to rent this out.
Benefit
The increased tax band, USC change and increase in earned income credit will mean a benefit to John of €342.
If John has a mortgage on the rented residential property or takes out a mortgage to repair or improve this property, he will be able to benefit from the increase in interest relief to 100%.
Overall benefit: +€342.Andrew is a small hill sheep farmer and is married to Alice. They have four children aged between two and 18. Alice works part-time off farm and earns €12,000/annum. Andrew is a recipient of Farm Assist and is in GLAS.
Benefit
Andrew would have no income tax /USC liability.The increase in Farm Assist will mean an extra €5 per week.If any land can benefit from the extra ANC payment, this will also apply (depending on rates).Overall benefit: +€260.Michael is 22 and a recent ag college graduate. He is returning home to take over the farm from his uncle.
The 100ac are currently valued at €900,000.
Michael also runs his own agri-contracting business and uses approximately 9,000l of diesel per annum which could be affected by a new carbon tax.
Benefits
With carbon tax not having increased this is the first and immediate benefit.The extension of stamp duty relief and young trained farmer stock relief will be good news.It will save €9,000 on stamp duty from his uncle.Michael needs to ensure that he can qualify for favourite nephew relief on the land being taken from the uncle. The extension of income averaging to those who carry on an off-farm trade (contracting) could benefit in the future.
The income tax changes on USC, increased band and earned income credit will benefit.
Overall benefit: savings of €9,000 plus income averaging will save him money in the future.
Married farmer
David is milking 80 cows in Co Carlow. His wife Mary does not work, so the farm generates the full family income. He has earned an average of €66,000 in the last three years and this will fall to €24,000 this year due to the weather challenges in 2018.
Benefit
If on income averaging, David could use the step out for 2018. He will be taxed on the €24,000 but the tax will be deferred on the average profit. The benefit of the increased tax band, the earned income credit, the home credit and the reduction in USC will all have an impact.
Net effect of budget at €24,000 = +/-€222.Single farmer
Meanwhile, Aoife is a single dairy farmer in Co Sligo, also milking 80 cows. While the weather affected her business, the costs have not risen as much and she expects to have an income of €45,000 this year, down from €54,000 last year.
Aoife is hoping to avail of the low-interest loan scheme to put in a new calf shed.
Benefit
Capital allowances on the shed, which will shelter income.
She will benefit from changes to USC, earned income credit and the increased tax band.
Overall benefit = €427.Mary is a suckler farmer with 20 cows and earned €10,000 last year. Her husband Ben is a garda earning €42,000. They have three children, two in college and one in secondary school. Mary is hoping a new suckler cow/calf payment will help improve her returns.
Benefit
The net tax effect of the budget tax-wise is nil as she is below the USC threshold. The increased tax band won’t be of benefit and the increase in earned income credit will not be of benefit.
The new suckler payment of €40 per cow will benefit her.
Overall benefit = a net increase in income of €800. John farms 150ac, 100ac of which is owned and the rest is on a long-term lease. Last year, his tillage enterprise had an income of €35,000 which he expects to stay the same this year. He has an empty house on an out-farm and is hoping for some budget incentives to rent this out.
Benefit
The increased tax band, USC change and increase in earned income credit will mean a benefit to John of €342.
If John has a mortgage on the rented residential property or takes out a mortgage to repair or improve this property, he will be able to benefit from the increase in interest relief to 100%.
Overall benefit: +€342.Andrew is a small hill sheep farmer and is married to Alice. They have four children aged between two and 18. Alice works part-time off farm and earns €12,000/annum. Andrew is a recipient of Farm Assist and is in GLAS.
Benefit
Andrew would have no income tax /USC liability.The increase in Farm Assist will mean an extra €5 per week.If any land can benefit from the extra ANC payment, this will also apply (depending on rates).Overall benefit: +€260.Michael is 22 and a recent ag college graduate. He is returning home to take over the farm from his uncle.
The 100ac are currently valued at €900,000.
Michael also runs his own agri-contracting business and uses approximately 9,000l of diesel per annum which could be affected by a new carbon tax.
Benefits
With carbon tax not having increased this is the first and immediate benefit.The extension of stamp duty relief and young trained farmer stock relief will be good news.It will save €9,000 on stamp duty from his uncle.Michael needs to ensure that he can qualify for favourite nephew relief on the land being taken from the uncle. The extension of income averaging to those who carry on an off-farm trade (contracting) could benefit in the future.
The income tax changes on USC, increased band and earned income credit will benefit.
Overall benefit: savings of €9,000 plus income averaging will save him money in the future. 
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