IFAC Accountant, Trevor Boland, is on this week’s Beef Edge podcast to discuss financial planning and managing cash flow for the rest of the year.
Suckler and beef farmers are currently receiving higher prices than ever before for their livestock sales, both through the live trade and through beef prices received from processors.
Trevor says that farmers need to be aware of what their farm profits are for 2024: what tax is payable on these profits and what the likely farm income is going to be for 2025?
Many farmers in the past, Trevor explains, would look at income tax filing deadlines as a target and not need to worry about a tax bill, as quite often many, particularly farmers with off-farm income, found themselves with a low tax bill or indeed a refund.
But the IFAC review of 2024 figures to date and projections for 2025 show the majority of suckler and beef farmers across the country will not only have larger income tax bills than normal, but in some cases significant tax bills.
For farmers looking at their 2024 figures and expected income for 2025, there are possibilities to reduce income tax bills, invest in the farm for the future, invest in family and make the farm a safer place to live and work.
Some options to reduce income tax bills include: Stock Relief, Family Wages ,Income Averaging Pension Contributions and Facility and Safety Improvement.