If you are not using a specialist Agricultural Accountant, these are some questions that you might wish to ask…

1.        Do your year end accounts separate each farming enterprise to identify which are most profitable?

2.        Are you receiving appropriate tax allowances for the farmhouse and any farm workers cottages?

3.        Have you considered new herd basis elections after every change in partnership?

4.        When profits fluctuate, are you making use of farmers averaging to reduce your tax and national insurance costs?

5.        Do you have a capital equipment plan, discussed with your accountant, to maximise available capital allowances?

6.        Are you keeping old farm buildings in full use to maintain important Inheritance Tax reliefs?

7.        Is your business correctly structured to maximise tax reliefs and does this fit in with your succession plans?

8.        Is the land ownership in the same names as the farming business and if not, have you discussed the consequences?

9.        If you have property lets, are these shown as farm income to take advantage of the recent tax cases on Inheritance Tax?

10.     Does your accountant work with your other professional advisors to provide pro-active advice and support?

Please contact Jonathan Crowther FCA to discuss our services.

Pershore 01386 552644 or Ledbury 01531 631500

Email: farming@crowther.co.uk

Many farms have a 31 March or 5 April year end and so it is important to think about year end planning now.

Capital expenditure

• Are you making full use of the £100,000 Annual Investment Allowance to obtain 100% tax relief on equipment purchases?  From 6 April 2012 the maximum relief is just £25,000.

Revenue expenditure

• Can you bring forward any revenue expenditure in the business to reduce your profit for this year?
• Are there any large repairs that could be done before your year end to reduce your profit?

 Stock valuation

• Have you taken account of homebred animals?
• Have you valued your growing crops based on cost or selling price less profit margin?
• Have you considered using a professional valuer?

 Please review your circumstances with your professional adviser or for further information about our services contact

Jonathan Crowther FCA

Pershore 01386 552644 or Ledbury 01531 631500

Email: farming@crowther.co.uk

Many farming families are faced with trying to build new houses on
the family farm to accommodate the younger generation. If you are
in this position, please consider tax planning at the same time as
obtaining planning permission!

 
CLAIMING VAT
• If building a new home or converting a building into a place to live
you may be able to reclaim the VAT you pay on some of the
building materials and conversion services.
• This is often done by making a separate claim within 3 months of
completion. It is essential to keep all VAT invoices.

 
CAPITAL ALLOWANCES
• Review any capital allowances available once the new house is
complete to assess whether expenditure qualifies for tax relief.

 
It is important to discuss this with your professional tax adviser to
review your individual circumstances.

 
For further information about our services please contact:
Jonathan Crowther FCA
Pershore (01386 552644) or Ledbury (01531 631500)
Email: farming@crowther.co.uk

Many farms have a 31 March or 5 April year end and so it is important to think about year end planning now.

 Capital expenditure

• Are you making full use of the £100,000 Annual Investment Allowance to obtain 100% tax relief on equipment purchases?  From 6 April 2012 the maximum relief is just £25,000.

Revenue expenditure

• Can you bring forward any revenue expenditure in the business to reduce your profit for this year?
• Are there any large repairs that could be done before your year end to reduce your profit?

Stock valuation

• Have you taken account of homebred animals?
• Have you valued your growing crops based on cost or selling price less profit margin?
• Have you considered using a professional valuer?

Please review your circumstances with your professional adviser or for further information about our services contact

Jonathan Crowther FCA

Pershore 01386 552644 or Ledbury 01531 631500

Email: farming@crowther.co.uk

Farmers, even hobby farmers, are noticing an increase in their profits as a result of higher prices.  Whilst the bank manager may be pleased, increased tax bills will not be welcome!

Tax planning is essential and may often include:

1. Preparing a capital expenditure forecast for the next 2 years.  (Please note the Annual Investment Allowance reduces to £25,000 from 5 April 2012 so time is running out).
2.  A Pension review and the possible use of a SIPP.
3.   Ensuring any tax reliefs are maximised eg:

• To take advantage of farmers averaging.
• To remove non-farming family members from ownership of land to qualify for Entrepreneurs’ Relief.
• To keep old redundant barns in use by the farming business to maintain Agricultural Property Relief.

It is important to have a good relationship with your professional tax adviser to review your individual circumstances.

For further information about our services please contact:

Jonathan Crowther FCA

Pershore 01386 552644 or Ledbury 01531 631500

Email: farming@crowther.co.uk