Prepare now for tax bills later in the year

Any dairy farmer who had a tax bill last year is likely to have a higher one this year.

This could put pressure on your cashflow later this year, and it is a good idea to figure out how you are going to budget for this “known unknown” bill.

According to Philip O’Connor of IFAC, one strategy the group strongly recommends to dairy farmers is to organise a direct debit to a separate deposit account from the peak milk production months (six months) to cover the anticipated tax bill.