Married full-time farmer

David is milking 80 cows in Co Laois. His wife, Mary, does not work off-farm so the farm generates the full family income.

He has earned an average of €60,000 in the last three years. They have two children under the age of 10.

Benefit

With the increase in the home carer’s credit of €100 and the self-employed credit of €150, the family will be €250/year better off before the effect of carbon tax. As a farmer on green diesel, there will be no extra cost but on the family car, an actual cost. This ignores the extra cost of inputs and power.

Single dairy farmer

Aoife who is single and a dairy farmer in Co Sligo, is also milking 80 cows. While the weather impacted her business, the costs have not risen as much and she expects to have an income of €57,000 this year, up from €54,000 last year. Aoife’s farm is very fragmented and she uses approximately 1,500 litres of road diesel.

Benefit

The self-employed credit of €150 will be a benefit but the carbon tax on the diesel will be costing about €50/year.

  • Net gain = €100.

    • Suckler and sheep farmer

    Peter is married to Joan and they have two children. They farm 90ac in a mixed suckler and sheep farm. They have a car, jeep and a 100hp tractor. They travel 15,000km in the car, 10,000km in the jeep and burn 1,000l of diesel in the tractor.

    Effect

    With the increase in the home carer’s and self-employed credits of €100 and €150, respectively, the family benefits to the tune of €250. The carbon tax increase will cost them approximately €150 per annum.

    Tillage farmer

    John farms 250ac, 100ac of which is owned and the rest on a long-term lease. Last year, his tillage enterprise had an income of €55,000 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

    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%. This change was in previous years. John will benefit to the tune of €150 for the increase in self-employed credit.

    Sheep farmer

    Andrew is a small hill sheep farmer and is married to Alice. They have four children aged two to 18. Alice works part-time and earns €12,000/year. Andrew receives Farm Assist and is in GLAS.

    Benefit

    Andrew would have no income tax or USC liability. There is no gain on the previous year.

    Young farmer

    Michael is 22 and a recent agricultural college graduate. He is returning home to take over the farm from his uncle. His father is hoping to gift him the farm in 2019. The 100ac farm is currently valued at €900,000.

    Michael also runs his own agri-contracting business and uses approximately 9,000l of diesel per year which could be affected by a new carbon tax.

    Benefit

    With carbon tax having increased, this is the first and immediate cost of €200. The extension of stamp duty relief and young trained farmer stock relief was good news in 2018.

    Michael needs to ensure that he can qualify for favourite nephew relief on the land being taken from the uncle or major tax could apply.

    The income tax changes on self-employed will benefit to the amount of €150.