Farm Structures | Accounting & Financial Advisors

Farm structure really matters

The business structure your farm operates under can have a major impact on your income, your work/life balance and even your succession options. We know that taking time out to review your structure seems like a hassle, but it could save you hassle in the long term. At ifac, we’ve been helping farmers make beneficial decisions for 50 years, and we can help you too. Our advice is simple – find the right structure for your circumstances and then let us take care of the rest.

Download our Structures Guide

Find the structure best suited to you and your business with our handy guide covering Sole Traders, Partnerships, and Limited Companies.

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Understanding your options:

The most common and straightforward structure, especially in the farming sector. That’s largely because it’s also the most straightforward to operate. The largest percentage of farmers in Ireland operate as sole traders.

Key Features: As a sole trader, you are taxed in your own name and personally own all your farm assets. The simplicity of accessing and controlling your funds without significant tax or legal consequences is a major benefit.

Ideal For: Farmers who prefer simplicity and direct control over their assets and finances.

Understanding the tax & grant implications of changing structures

Changing your farm’s business structure is a significant decision that can have complex tax implications. Any adjustments—whether moving to a partnership, forming a limited company, or restructuring ownership—must be carefully planned to avoid unexpected tax liabilities. Additionally, eligibility for grants and schemes can be affected by structural changes, so it’s essential to review your options before making any decisions.

At ifac, we work closely with farmers and their Agri Advisors to ensure that any changes in business structure are managed correctly, keeping your tax position optimised and your access to funding opportunities intact.

Considering VAT: an overlooked factor

VAT is often overlooked when reviewing farm structures, but it plays a crucial role in your overall financial setup. Farmers typically operate under a flat-rate VAT scheme, which is designed to minimise administrative burden by compensating for VAT paid on purchases. However, not being VAT registered can also mean missing out on reclaiming VAT on capital investments, such as fixed structures on the farm. If you're reviewing your structure, it's the perfect time to assess whether VAT registration could benefit your business.

The right structure improves your lifestyle and safeguards your family's future

Selecting the right business structure isn’t just about tax—it’s about securing the future of your farm, improving efficiency, and ensuring long-term financial stability. Each option has its own benefits, and the best choice depends on your individual circumstances, from succession planning to borrowing power and tax efficiency. At ifac, we understand that changing or reviewing your farm structure can feel overwhelming, but you don’t have to navigate it alone. Our expert team is here to help you assess your options, understand the financial and tax implications, and make informed decisions that support your business and family’s future.