Stock relief is available on the increase in the value of stock on the farm at the year-end compared to the previous year.  In summary, Revenue will give farmers an allowance of 25, 50 or 100% of the increase in stock value.

The value of the relief is dependent  if the farm  is a young trained farmer and the type of structure of ownership.

Up to now, stock values have generally rolled over year to year with little change in values.  With the average suckler cow now worth over €2,000 in cull value a big increase on previous years, it is time to review stock values on farm and take advantage of stock relief.

By reviewing stock values at the end of 2024, adjustments can be made to bring values up to date in the accounts, which may result in profits on the farm being spread between two years.

This applies across all categories of animals on the farm and particularly applies to animals sold early in the year, where the sales value is known before the previous year’s accounts are complete and can be incorporated into the final figures.

All calves, weanlings, store cattle and finishing animals should be valued 60% of market value at year end.

Remember, stock relief is an expense item that costs nothing.

Across farms there are children, uncles, aunts, parents, cousins nephews nieces involved in working on the farm, helping in the office or have a share in a favourite cow or heifer on the farm.  Most of the time these family members are unpaid help and very often needed to run the farm, either at busy times of the year or when the holder is busy elsewhere.

These family members often go unrewarded but when there is bit left over it can be spread around which also help reduce your tax bill. To comply with PAYE modernisation rules, these family members need to be put on the payroll this year and a wage paid to their bank account and reported to Revenue.

Those wages  paid to the  kids can be used to pay college fees and accommodation in the future, if required, thereby saving on the double.

Where a weanling is sold from the child’s favourite cow, pay them a bonus, to boost their interest and save you the farmer even more.

Use income averaging where appropriate. Income averaging allows farmers to pay tax based on the average of five years' farming profits and losses. This means that one-fifth of the profits for five years is charged to tax for the year.  Remember, this is kicking the tax bill down the road for the next four years, but if there is additional capital allowances coming on board in the future, income averaging may suit the farm.

Rather than having a large tax bill in 2024 or 2025, averaging allows this income to be spread over five years thereby reducing immediate cashflow pressures for income tax and preliminary tax liabilities. However, if profits continue to rise in 2026 each year the tax bill will grow too therefore careful planning is needed.

With high profits expected in 2024 and 2025 use these profits wisely to invest in your future.

Pension contributions are a great way to reduce tax liabilities, reduce preliminary tax and puts money away to provide a future income in retirement.

While a lot of farmers have made provision through a private pension fund, many are not contributing enough or making use of the maximum contribution limits.

Take the time to review current pension provisions, review employment pensions and discuss with your financial advisor opportunities to take some profits, invest in your pension and save tax.

A review should also be carried out for spouses and where additional cashflow is available consider increasing spouses pension contributions.

 Pensions need to be targeted at the 40% rate of marginal tax as someday they will be drawn down and best not to pay USC on them twice.

1 in 5 farmers according our ifac annual farm report cannot afford to retire as the farm cannot support two generations working it at once. Get a head start and save on tax as well!

Investing in the farm by using additional profits generated, can make the farm more profitable in the future, a safer place to work and more efficient for one person to manage when labour is short.

Improve handling facilities, calving facilities, yard lighting, gates and barriers to make the farm safer.  There is no point in having the best herd of cows or beef bullocks if you are unable to work them due to injury or worse.

Expenses incurred will reduce the tax bills and make the farm safer and easier to run in the future.  TAMS grants available for most items and accelerated capital allowances are also available.

Start planning now to get TAMS applications into the Department of Agriculture and have approval and expense incurred in the year 2025.

Slurry storage requirements should also be reviewed and consider what investment might be required in the future to comply with regulatory requirements.