Question: My accountant has recently advised me to change the structure of my farm business, but I’m not fully sure why. I’ve been farming away as normal, everything seems to be working fine, and the idea of changing structures feels complicated. I’m worried about the impact on tax and my grants and schemes. I don’t want to make a mistake that could affect my payments or create legal or tax issues down the road. Why would a structure change be necessary, and what exactly is involved in making the change safely?
Answer: You are far from alone in this situation. Many farmers only look at structure when prompted by their accountant, often because profits are rising, investments are planned, or family and succession considerations are coming into view. A change of structure can feel unnecessary or even risky, but when done correctly and for the right reasons, it can protect your income, secure scheme payments, reduce tax and support future planning.
The first thing to understand is why accountants raise the topic. Most commonly, structure becomes an issue when income is climbing, tax bills are increasing, there’s an underlying tax bill coming, or development plans require better financial planning. For example, operating as a sole trader is simple, but it can become limiting when profits push you into higher tax bands, or when you want to bring someone into the business.
Partnerships or companies can offer tax savings, succession options and grant benefits, but only when set up correctly.
BISS and scheme deadlines
Where farmers get caught out is assuming that changing structure is a small administrative task. In reality, the structure under which you farm affects everything: tax, herd number, BISS, scheme participation, eligibility for grants, succession planning, borrowing capacity and even day-to-day operations. That’s why your accountant is encouraging you to look at it early, not at the last minute.
A critical point – and one that is often overlooked – is the impact on BISS and scheme deadlines, specifically the 15 May submission date. The BISS application shows who currently owns the herd number, the structure under which they are farming, whether there is an existing Registered Farm Partnership, and which schemes they are participating in. Because these details determine payment eligibility, no structure change should be made without checking the BISS file first. If a change is made after your application is submitted, it can cause issues with entitlements, partnership status, scheme eligibility and even future clawbacks.
The Department treats any change in structure as a fundamental change in the farming entity. That means scheme applications often need to be updated. If the agri advisor is not involved early, BISS, TAMS, ACRES or other schemes might not reflect the new structure. This is where farmers inadvertently get into trouble.
The process itself is straightforward once properly managed. The first step is a meeting between you and your accountant to assess whether a new structure actually makes financial sense. If it does, you and your accountant will contact your agri advisor. This is not optional, the advisor must confirm scheme participation, herd numbers, eligibility and any potential clawbacks before anything else happens. They will also check whether you are in schemes that require prior notification of structure changes, such as TAMS or ACRES. If those schemes are not informed in advance, future payments can be affected.
Once the advisor confirms the scheme position, your accountant and farm team review your intended structure; who will be partners, whether a Registered Farm Partnership is planned, or whether a company is appropriate. Only when all parties are satisfied with the financial, tax and scheme implications should the structure change proceed.
Administrative work
This is followed by the administrative work that both your accountant, ag advisor and solicitor will have to complete. For example, reviewing herd number arrangements, completing herd number changes, confirming bank accounts, ensuring entitlement transfers are handled correctly, and reviewing leases and wills. These steps sound technical, but they exist to ensure nothing is missed and every scheme remains valid.
If your accountant is telling you it’s time to review structure, it is likely for a good reason. Your role is not to know the technical steps; it is to start the conversation early, especially before BISS on 15 May. That deadline can be the difference between a smooth transition and a costly mistake. Changes made after 15 May may not be recognised for BISS, delaying payments or disrupting scheme eligibility.
Philip O’Connor is head of farm support with ifac, the professional services firm for farming, food and agribusiness.
- Review BISS details (herd owner, partnerships, schemes,entitlements).
- Notify your agri advisor before any change.
- Identify schemes needing pre-approval (TAMS, ACRES, RFP).
- Confirm who will hold the herd number and bank account.
- Plan entitlement transfer and check for clawback risks.
- If changing structure, update your will.
Question: My accountant has recently advised me to change the structure of my farm business, but I’m not fully sure why. I’ve been farming away as normal, everything seems to be working fine, and the idea of changing structures feels complicated. I’m worried about the impact on tax and my grants and schemes. I don’t want to make a mistake that could affect my payments or create legal or tax issues down the road. Why would a structure change be necessary, and what exactly is involved in making the change safely?
Answer: You are far from alone in this situation. Many farmers only look at structure when prompted by their accountant, often because profits are rising, investments are planned, or family and succession considerations are coming into view. A change of structure can feel unnecessary or even risky, but when done correctly and for the right reasons, it can protect your income, secure scheme payments, reduce tax and support future planning.
The first thing to understand is why accountants raise the topic. Most commonly, structure becomes an issue when income is climbing, tax bills are increasing, there’s an underlying tax bill coming, or development plans require better financial planning. For example, operating as a sole trader is simple, but it can become limiting when profits push you into higher tax bands, or when you want to bring someone into the business.
Partnerships or companies can offer tax savings, succession options and grant benefits, but only when set up correctly.
BISS and scheme deadlines
Where farmers get caught out is assuming that changing structure is a small administrative task. In reality, the structure under which you farm affects everything: tax, herd number, BISS, scheme participation, eligibility for grants, succession planning, borrowing capacity and even day-to-day operations. That’s why your accountant is encouraging you to look at it early, not at the last minute.
A critical point – and one that is often overlooked – is the impact on BISS and scheme deadlines, specifically the 15 May submission date. The BISS application shows who currently owns the herd number, the structure under which they are farming, whether there is an existing Registered Farm Partnership, and which schemes they are participating in. Because these details determine payment eligibility, no structure change should be made without checking the BISS file first. If a change is made after your application is submitted, it can cause issues with entitlements, partnership status, scheme eligibility and even future clawbacks.
The Department treats any change in structure as a fundamental change in the farming entity. That means scheme applications often need to be updated. If the agri advisor is not involved early, BISS, TAMS, ACRES or other schemes might not reflect the new structure. This is where farmers inadvertently get into trouble.
The process itself is straightforward once properly managed. The first step is a meeting between you and your accountant to assess whether a new structure actually makes financial sense. If it does, you and your accountant will contact your agri advisor. This is not optional, the advisor must confirm scheme participation, herd numbers, eligibility and any potential clawbacks before anything else happens. They will also check whether you are in schemes that require prior notification of structure changes, such as TAMS or ACRES. If those schemes are not informed in advance, future payments can be affected.
Once the advisor confirms the scheme position, your accountant and farm team review your intended structure; who will be partners, whether a Registered Farm Partnership is planned, or whether a company is appropriate. Only when all parties are satisfied with the financial, tax and scheme implications should the structure change proceed.
Administrative work
This is followed by the administrative work that both your accountant, ag advisor and solicitor will have to complete. For example, reviewing herd number arrangements, completing herd number changes, confirming bank accounts, ensuring entitlement transfers are handled correctly, and reviewing leases and wills. These steps sound technical, but they exist to ensure nothing is missed and every scheme remains valid.
If your accountant is telling you it’s time to review structure, it is likely for a good reason. Your role is not to know the technical steps; it is to start the conversation early, especially before BISS on 15 May. That deadline can be the difference between a smooth transition and a costly mistake. Changes made after 15 May may not be recognised for BISS, delaying payments or disrupting scheme eligibility.
Philip O’Connor is head of farm support with ifac, the professional services firm for farming, food and agribusiness.
- Review BISS details (herd owner, partnerships, schemes,entitlements).
- Notify your agri advisor before any change.
- Identify schemes needing pre-approval (TAMS, ACRES, RFP).
- Confirm who will hold the herd number and bank account.
- Plan entitlement transfer and check for clawback risks.
- If changing structure, update your will.
SHARING OPTIONS