Kieran Coughlan: Income averaging likely to cost farmers heavily

Farmers in averaging do have one other option available to them, which is to step out of averaging for one year

For some farmers, income averaging provided a lifeline when it came to how their 2022 profits were being assessed for tax, and offered those farmers a serious tax and cashflow saving when it came to paying their tax bill in October 2023.

Farmers who have availed of income averaging are facing tough tax bills this year, and the second year in a row of subdued farm profits transpires for some of Ireland’s main farming sectors.

The issue is more pronounced than ever as 2021 and 2022 were in many respects record years, which are now coming back to haunt farmers where average profits are riding high with these results included.