Average farming income in the State was €23,070 in 2013, according to a new statistical analysis by the Office of the Revenue Commissioners.
Farming income is broken down per county (see map) and this shows that farming incomes are highest in Waterford, followed by Kilkenny, Cork, Tipperary, Kildare and Dublin. Counties with the lowest farm incomes are Leitrim, Mayo, Sligo, Donegal and Roscommon.
Farming income
The analysis defines farming income as trading income from self-assessed income tax farmer cases.
The Revenue conducted its analysis on 129,263 taxpayers with a farming interest. This included jointly assessed couples and it was not possible to separate out the incomes and payments of each.
The analysis also looked at gross income, totalling PAYE and all forms of self-assessed income for these individuals. As well as income from farm trading, the latter included income such as dividends, certain social welfare payments, deposit interest, rental income, foreign income, etc.
Average gross income was €44,550. The highest figure was in Co Dublin, followed by counties Kildare, Meath, Kilkenny, Limerick and Cork. The lowest was in Co Donegal, followed by counties Monaghan, Mayo and Leitrim.
Tax reliefs
The analysis showed that stock relief had limited impact on farmers in 2013. Some 8,950 farmers availed of general stock relief, saving €5.2m in income tax. Another 310 farmers availed of stock relief for young trained farmers, saving €1.1m, while 30 partnerships availed of stock relief. In that year, 4,370 farmers had land rental income exempted from income tax.
In contrast, approximately half of farmer cases (64,609) availed of capital allowances on machinery and plant, saving €395m in tax. In addition, 33,158 farmers built sheds and reduced tax bills by €190m.
Farmers investing in sheds, and not registered for VAT, were refunded approximately €50m of VAT in the five years from 2010 to 2014. The number of farmers making these claims was approximately 17,000 each year.
The analysis also found:
87,392 of the 129,263 farmer cases were in receipt of PAYE income, either on the part of the farmer or spouse/partner. Approximately 10,700 of farmers had employees. The total number of employees was 24,400.Only 18% of those filing tax returns were aged under 40.Some cases do not indicate age/date of birth (it is not required information). “It would be expected that the missing cases may be biased towards an older age profile.”Nonetheless, 89% of farmers file returns electronically via ROS.Evidence
The analysis was produced by Revenue’s Statistics and Economic Research Branch, with the aim of adding to the evidence available on the sector from both an economic and tax perspective. It is also to fulfil one of the recommendations of the Agri-Taxation Review to ensure better data collection on the costs and benefits of agri-tax measures.
Average farming income in the State was €23,070 in 2013, according to a new statistical analysis by the Office of the Revenue Commissioners.
Farming income is broken down per county (see map) and this shows that farming incomes are highest in Waterford, followed by Kilkenny, Cork, Tipperary, Kildare and Dublin. Counties with the lowest farm incomes are Leitrim, Mayo, Sligo, Donegal and Roscommon.
Farming income
The analysis defines farming income as trading income from self-assessed income tax farmer cases.
The Revenue conducted its analysis on 129,263 taxpayers with a farming interest. This included jointly assessed couples and it was not possible to separate out the incomes and payments of each.
The analysis also looked at gross income, totalling PAYE and all forms of self-assessed income for these individuals. As well as income from farm trading, the latter included income such as dividends, certain social welfare payments, deposit interest, rental income, foreign income, etc.
Average gross income was €44,550. The highest figure was in Co Dublin, followed by counties Kildare, Meath, Kilkenny, Limerick and Cork. The lowest was in Co Donegal, followed by counties Monaghan, Mayo and Leitrim.
Tax reliefs
The analysis showed that stock relief had limited impact on farmers in 2013. Some 8,950 farmers availed of general stock relief, saving €5.2m in income tax. Another 310 farmers availed of stock relief for young trained farmers, saving €1.1m, while 30 partnerships availed of stock relief. In that year, 4,370 farmers had land rental income exempted from income tax.
In contrast, approximately half of farmer cases (64,609) availed of capital allowances on machinery and plant, saving €395m in tax. In addition, 33,158 farmers built sheds and reduced tax bills by €190m.
Farmers investing in sheds, and not registered for VAT, were refunded approximately €50m of VAT in the five years from 2010 to 2014. The number of farmers making these claims was approximately 17,000 each year.
The analysis also found:
87,392 of the 129,263 farmer cases were in receipt of PAYE income, either on the part of the farmer or spouse/partner. Approximately 10,700 of farmers had employees. The total number of employees was 24,400.Only 18% of those filing tax returns were aged under 40.Some cases do not indicate age/date of birth (it is not required information). “It would be expected that the missing cases may be biased towards an older age profile.”Nonetheless, 89% of farmers file returns electronically via ROS.Evidence
The analysis was produced by Revenue’s Statistics and Economic Research Branch, with the aim of adding to the evidence available on the sector from both an economic and tax perspective. It is also to fulfil one of the recommendations of the Agri-Taxation Review to ensure better data collection on the costs and benefits of agri-tax measures.
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