Is now the time to switch your farm to a company?

Transitioning to a farming company is an option and can spare a farmer from lofty tax bills, most especially where a farmer is exposed to tax at the higher rate on a larger portion of their income.

Like many businesses, farmers will have good years and bad years.

Many farmers are facing the perfect storm of high tax bills coming off the back of an exceptionally good year in 2022 but are facing cashflow pressures this year due to subdued profits across many of the main farming sectors. 

Earlier this year, Teagasc were predicting a drop of over 50% in farming profits could be possible for both dairy and tillage farmers, and as the year has progressed that prediction seems to be translating more into reality. The settling up of the tax bills is no doubt causing pain and some farmers are left pondering is there something that they should be doing to avoid such a scenario from happening again.