26 February 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


16 February 2015
Executive Head Chef
For example, nut, dairy or wheat allergies. We currently have an excellent opportunity for an Executive Head Chef to join our...

19 February 2015
Childcare Assistant
Email with cv or post it with covering letter to Country Childcare, Ham Farm, Ham, Wellington, TA21 9JB. Country Childcare ar...

11 February 2015
Graduate Farm Business Management
Graduate Farm Business Management. Due to expansion my clients are looking to recruit a graduate Farm Business Managerto join...

24 February 2015
Apprentice Carpenter
Business Administration, Accountancy, Agriculture, Construction, Customer Services, Dental Nursing, Electrical, Engineering, ...

6 February 2015
Deputy Manager - Biological Services
The unit is responsible for preclinical trial work predominantly, but not exclusively, working with farm animals....




Top stories you may have missed
2 February 2015 | Arable
Is EU membership damaging UK farming?

Is EU membership damaging UK farming?

Membership of the EU is damaging the British farming industry, according to...


29 January 2015 | Machinery and Equipment
Drones 'rapidly changing' agriculture

Drones 'rapidly changing' agriculture

BASIS has launched an accreditation for pilots of Unmanned Aerial Systems (...


23 January 2015 | Arable
UK wheat yields have potential to double

UK wheat yields have potential to double

UK wheat yields have theoretical potential to more than double over the nex...


23 January 2015 | Machinery and Equipment
Crowds flock to LAMMA 2015

Crowds flock to LAMMA 2015

Britain’s farmers flocked to Peterborough for the first day of LAMMA’15 to ...


22 January 2015 | Cattle
Don't blame supermarkets for milk crisis...

Don't blame supermarkets for milk crisis...

The crisis in the dairy industry is not the fault of supermarkets, accordin...


16 January 2015 | CLA
Families affected by HS2 face 'major wor...

Families affected by HS2 face 'major wor...

Transport Minister Baroness Kramer visited three rural businesses in Cheshi...


16 January 2015 | Machinery and Equipment
John Deere unveil new 6R tractor range

John Deere unveil new 6R tractor range

Spearheading the John Deere range of mid-size tractors from Mannheim, the n...


14 January 2015 | Animal Health
Monthly TB checks more effective than ba...

Monthly TB checks more effective than ba...

Regular testing for bovine TB could significantly reduce the number of infe...


12 January 2015 | News
Government regulations hampering UK agri...

Government regulations hampering UK agri...

Single-issue policy-making threatens to hamper, not help, the progress of U...


8 January 2015 | Cattle
2015: The year ahead for the beef market

2015: The year ahead for the beef market

2014 has been a “rocky old year” for the beef industry but better prices ar...