To lower your taxes for a certain year, you need to defer extra income by using the IED Scheme. Income deposited to the scheme is treated as a tax deduction for that particular year, but what happens to your deposit?
No need to worry! Your money is kept safe as part of the IED Scheme. It is just like keeping some money in the bank. In fact, Inland Revenue even make it ‘grow’ by giving you an interest rate of 3%.
The money doesn’t have to stay in the scheme either. You are completely free to make an application to withdraw funds (subject to stipulations/rules) if you need money for things such as buying equipment or completing maintenance work on your farm.