You should by now have filed, or be the process of preparing, your tax returns for 2016/17. Have you remembered however, that as of 6 April 2016, farmers have the option to average their profits over five years? Two-year averaging is still available, and you can choose which is most beneficial for you – two-year, … Continue reading Can You Save Tax with Five-Year Farmer’s Averaging?
There are two five-year rules that every farmer should be aware of, both of which affect the tax they pay. One has been in place for quite some time and the other was introduced in April 2016. Here is a quick re-cap of both. The ‘five year loss’ rule seeks to ensure that farmers claim … Continue reading The Farmer and The Five-Year Rules
Prior to 6 April 2016 farmers were only able to average profits over 2 consecutive tax years. From 6 April, farmers will have a choice of averaging over 2 years or 5 years. The introduction of this 5 year average period will be of great benefit to farmers whose profits can fluctuate considerably over a … Continue reading Just An Average Farmer
Farm profits can fluctuate wildly from year to year due to many uncontrollable factors, from the weather to world commodity markets. This means that in one year you may have a very high tax bill, and in another nothing to pay. In order to smooth this out, you can make a Farmers' Averaging Election to … Continue reading Tax Savings For Farmers