Farming as a Sole Trader

It won’t surprise you to learn that this is the most traditional business structure 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. As a sole trader, you’re taxed in your own name and own your assets personally. This ‘personal money’ is often seen as better than company money because you can access it without any significant tax or legal consequences. It’s very simple and easy to control – this certainly has its benefits.

Sole Trader
Sole Trader

Is this the right structure for my business?

Sole Trader

While operating as a sole trader is certainly an advantage if you’re on a low income, it’s less suitable for farmers in the higher Income Tax bands or those with ambitious development plans. Our team of experts will evaluate your business, taking into account tax implications.

  • Farm Structure Evaluation
  • Accounts & Bookkeeping
  • Tax Planning
  • Payroll
  • Grant & Schemes Applications
  • Pension Planning
  • Succession Planning

When do I review my structure?

When do I review my structure?

If you get to the stage that all available personal tax-planning entitlements both inside and outside the farm gate have been exhausted, and you still have a significant amount of farm profits that are taxable at the marginal rate of Income Tax, it’s time to review your setup.

Sole Trader

When do I review my structure?

If you get to the stage that all available personal tax-planning entitlements both inside and outside the farm gate have been exhausted, and you still have a significant amount of farm profits that are taxable at the marginal rate of Income Tax, it’s time to review your setup.

Setting up as a sole trader or sticking with this structure makes sense if:
  • You aren’t generally paying tax at the higher rate.
  • Tax planning within the farm gate successfully removes further profits from the 40% marginal Income Tax rate band.
Key triggers for reconsidering your sole trader setup:
  • Tax planning inside and outside the farm gate is no longer removing enough profit from the 40% marginal Income Tax rate band.
  • You have ambitious development plans.
  • You’re considering significant borrowings for farm capital investment.
  • You’re considering future land purchases.
  • You have significant off-farm income.

Get in touch with one of our experts today

Robert Johnson - Senior Tax Consultant

We know that when you're in the thick of it it's not always easy to see where you are, how change might affect you, or where you need to go. Contact one of our experts today.

If you have any questions feel free to send us an email. We would love to hear from you.