Forming a company for farming ?

Hi there

I have seen quite a lot of farmers doing this recently but you really need to plan out the steps well in advance.

Its not just about the entitlements but you also need to consider the long term plans with the farm business and make sure that you get the tax and legals right beforehand.

Its relatively easy to transfer to the company but if you choose to unwind it later, that can create problems.

Best of luck with it

its as simple or as complicated as the advisors want them to be.

Limited companies suit a percentage of farmers & agri contractors but in no means does it suit everyone

patsy_mccabe wrote: »

Lakill, what are the pros & cons of a farming company?

standard limited company

Advantages of trading as a Limited Liability Company:
1. The shareholders are only liable to lose the share capital they have invested in the company.
2. Raising Capital to fund growth and development can be easier.
3. There may be many owners of the company, and it continues to exist despite the death, retirement or resignation of the Directors.
4. The Company can make pension contributions as an expense.

Disadvantages of trading in a Limited Liability Company:
1. In practice, lenders generally seek to have personal guarantees against loans given, which reduces the benefit of limited liability.
2. Setting up a company is more expensive than trading as a sole trader.
3. Legislative requirements in making annual returns to the Companies Registration Office are more onerous. Annual Accounts must be filed with the Companies Registration Office also.
4. Company Directors are subject to extensive legal responsibilities, including being made personally liable for all the debts of the Company if they are proven to have traded recklessly.


you can factor in the land leasing as an additional advantage to a farming enterprise

patsy_mccabe wrote: »

Thanks. Do you pay less tax on income.

the company does a tax return in its own right called CT1 (Corporation tax) and rate for farming would be 12.5%

the director would do his/her own Form 11 (Income tax) return as usual but based on a P60 for the wages they took from the company

Might be the quickest route to becoming a CEO.:rolleyes:

You're accountant prob the best person to talk to. If there is development to do on farm the capital allowances would be more valuable outside the company but if not and consistent profits being made maybe so. Other ways of managing it also, income averaging, pension contributions etc. Every case different so best to go thru it all with accountant

I was at the mart for an hour last week I see most dairy farm with a company name now days coming up on the board was half expecting to see trotters independent traders coming up 😂