Ejected Farmers Could Be Entitled To Compensation

Farmers who HMRC have ejected from the Agricultural Flat-Rate Scheme (AFRS) may be entitled to a repayment or compensation. An opinion from the advocate general to the European Court of Justice has led to the belief that many who feel they have been unfairly removed from the VAT simplification scheme may be able to make … Continue reading Ejected Farmers Could Be Entitled To Compensation

HMRC Not So Merry With Wedding Venues

Farmers hiring out land and buildings for wedding ceremonies may have to pay back thousands in back tax following a failed VAT appeal earlier this year. Blue Chip Hotels failed in their appeal to overturn more than £50,000 in VAT. The company argued that, as it didn’t offer room hire for civil wedding ceremonies as … Continue reading HMRC Not So Merry With Wedding Venues

HMRC, The Dairy Farmer & The Disallowed Loss

The recent case of B and R Scambler v HMRC (TC4842) reinforces HMRC’s refusal to accept farming loss claims where they deem that the farm is not being run on a commercial basis. And there are many cases of this nature going to Tribunal. Assuming all criteria is satisfied, self-employment losses can be offset against … Continue reading HMRC, The Dairy Farmer & The Disallowed Loss

Tax Allowances on the Farm

Certain plant and machinery can qualify for what’s known as Annual Investment Allowance (AIA), which allows businesses to claim for the cost of the new asset (up the specified threshold) in the year of purchase. The current Annual Investment Allowance is £200,000 (in the year to 31 December 2015 the limit was £500,000) and it’s … Continue reading Tax Allowances on the Farm

The Farmhouse – Not Just Where The Farmer Lives!

They say an Englishman’s home is his castle, but in the case of a farmer, his home is usually more of a business centre. The Farmhouse is an essential part of any farm operation, serving as an office, a store, a boardroom, a make-shift veterinary clinic as well as a works canteen and restroom.  As … Continue reading The Farmhouse – Not Just Where The Farmer Lives!

Main Residence Nil Rate Band (RNRB)

The introduction of the Main Residence Nil Rate Band (RNRB) may have a substantial impact on Inheritance Tax Planning and how farmers pass on their assets, possibly tax-free. The new allowance is due to be introduce by April 2017 at an initial threshold of £100,000 which will rise to £175,000 by April 2020. This threshold … Continue reading Main Residence Nil Rate Band (RNRB)

HMRC Warns Farmers To Declare Subsidies On Tax Returns

Farmers claiming the BPS are being reminded by HM Revenue & Customs that these support payments must be included on their tax returns to avoid possible fines. Several farmers have been written to by HMRC reminding them that subsidies are taxable and need to be declared on tax returns. Some may be worried by the … Continue reading HMRC Warns Farmers To Declare Subsidies On Tax Returns

Farmers Averaging Election Success

We are delighted that lobbying on the proposed extension of Farmers’ Averaging Elections from 2 years to 5 years has paid dividends. It was announced in the budget that farmers will have the option of either 2 year or 5 year averaging. We were very worried that the initial proposal to only allow 5 year … Continue reading Farmers Averaging Election Success

Farmers Now Have Time To Pay

HMRC have recently announced they will extend their “Time To Pay” scheme to include sheep and dairy farmers.  The scheme allows tax payers who are stretched financially to spread their payments over an agreed extended period of time.  Acceptance of different terms for payment is not guaranteed to applicants, however, as each case is looked … Continue reading Farmers Now Have Time To Pay

You Are Being Watched

Did you know HMRC is keeping a watchful eye on your financial life? Using a software application called “Connect”, the taxman is able to liaise with other sources of information to keep a check on your money, where it comes from and what you do with it.  These sources of data include banks (both here … Continue reading You Are Being Watched