Taxable income is that part of income on which tax is actually calculated. In arriving at a figure for taxable income deductions from gross income must be made, in accordance with the Income Tax Acts, in respect of expenses, capital allowances, stock relief, interest repayments on borrowings, contributions towards medical assurance, retirement annuities and basic personal allowances, or exemption limits, as appropriate.
The figures for the taxable income of farmers on Revenue records for 1992/93, namely £347 million for full-time farmers and £138 million for trader-farmers, correspond with gross income figures of £590 million for full-time farmers and £200 million for trader-farmers. The figure of £200 million attributed to trader-farmers includes income from trades or professions other than farming which is not distinguished in the total. Employment income of £275 million earned by farmers or their spouses and which is liable to tax under PAYE is also excluded from the figures of gross income attributed to both full-time farmers and trader-farmers.