19 April 2015 | Online since 2003



10 March 2014|Finance,News,Property News

Flooding insurance claims 'to run into hundreds of millions'


As the flooding covering huge areas of farmland in the south of England and elsewhere caused by the record rainfall over the winter months recedes, farmers are counting the cost in terms of damage to crops, stock machinery and buildings, infrastructure such as damaged flood defences, riverbanks, fences, gates and so on.

Insurance claims from the flooding are expected to run into hundreds of millions of pounds.

David McGeachy, VAT specialist at Saffery Champness, said: "It is important to remember that even though insurance claim settlements are not subject to VAT, the farm or estate is likely to incur VAT on repair works to put right damage or to replace damaged stock for example and this VAT paid is recoverable from HMRC subject to the normal VAT rules.

"Similarly, VAT on any legal services that may be required where policies provide cover for such costs may also be subject to the same rules."

Where farm or estate businesses are VAT registered they should bring this to the attention of their insurer where they intend to make a claim.

They will need to ascertain whether they may be able to recover all of the VAT incurred in connection either with repairs or reimbursement for damage, stock or other property from HMRC.

Insurance policies may allow non-VAT registered farmers to make claims for VAT that are not recoverable from HMRC, or in situations where a VAT registered farming business is partially VAT exempt.

In these circumstances all of the options should be explored as appropriate to ensure the farming business is not left out of pocket on VAT.

Download



Comments


No comments posted yet. Be the first to post a comment

To post comment without approval login or register

Display name

Please enter your name

Email (optional)
Comment

Please enter your comment

Post Comment

Your comment submitted successfully.Please wait for admin approval.

Some error on your process.Please try one more time.



Jobs


15 April 2015
Site Manager (OFTO, SAP, HV, 132kV, 400kV) Ramsgate, Kent
Our Asset Management department provides management services on approximately 2.6GW of wind energy, making us the leading pro...

15 April 2015
Applied Economist: Agricultural/Development Economics
Farm household modelling. Applications are invited for a highly motivated applied economist to join the Social, Economic and ...

16 April 2015
Grower Manager
Educated to Diploma level in horticulture or agriculture. This is an excellent career driven opportunity to join a very large...

3 April 2015
Retail Store Manager
Retail Store Manager Park Farm Centre, Allestree, Derby Salary: Negotiable based on experience Hours: 30 hours per week Our c...

16 April 2015
Engineering Technician / Multi-Skilled Engineer
This multi skilled engineering role is not only about proactively maintaining equipment but in developing continuous improvem...





Related Companies


Top stories you may have missed
10 April 2015 | Agri Safety

Final phase of Scotland's war on BVD

The permanent eradication of Bovine Viral Diarrhoea [BVD] in Scottish cattl...


10 April 2015 | Dairy

Dairy farmers competitiveness will be te...

The abolition of milk quotas in Europe on 1st April has resulted in a numbe...


10 April 2015 | Cattle

EU milk sector growth 'dependent on expo...

The top 14 milk producing countries in Europe will increase their productio...


10 April 2015 | News

Could the rural vote hold the key to the...

Matt Ware is the NFU's head of government and parliamentary affairs, based ...


10 April 2015 | Arable

Action needed to boost farmgate prices i...

There is a 'desperate need' to improve farmgate returns given low incomes a...


9 April 2015 | Arable

OSR damage risks early Sclerotinia infec...

Rapid stem extension, after a slow start to spring, is likely to create spl...


9 April 2015 | Finance

Time for a farm rent revolution?

The time has come for landlords to expect to see reductions in farm rents, ...


8 April 2015 | Cattle

Cogent strengthens reputation for high c...

Cogent’s reputation as a source of the highest calibre sires has been enhan...


8 April 2015 | Arable

Exotic plant fungus a 'serious threat to...

The spread of exotic and aggressive strains of a plant fungus is presenting...


7 April 2015 | Animal Health

Share information to tackle food fraud, ...

The FSA’s new Food Crime Unit wants the industry to share information, some...