29 March 2015 | Online since 2003



9 June 2014|Finance,News

Ten tax tips for rural businesses


The future is brighter, the economy is picking up, the farming year is well underway, and there are a number of steps that farmers and land owners can take now to put their tax affairs in better order for the future.

With the prospect of higher borrowing costs threatened as the economy firms, Catherine Desmond, Partner in the Landed Estates and Rural Business Group of UK top 20 Chartered Accountant Saffery Champness, says a number of steps can be taken to streamline your tax affairs. Her top 10 Rural Tax Health Check tips are:

1. Don’t leave long term tax planning until it’s too late – communicate effectively with other family members and where possible take action now.

2. New allowances for investment in plant, machinery and equipment were introduced from April 2014 for a limited period only, £500,000 being the new maximum until 31 December 2015 when the limit reduces drastically to just £25,000. Care needs to be taken with financial years that straddle the start and finish dates for the scheme, and an investment programme for this year and next year that takes full advantage of the scheme should be planned now.

3. Have a look at business performance for the current year in order to determine whether the second installment of income tax due on 31 July is still appropriate. Have circumstances changed so that your tax liability for 2013/14 will be lower than that in 2012/13?

4. The new ISA rules introduced a higher annual investment limit for 2014/15 of £15,000 from July 2014. Have you considered taking advantage of this?

5. Make sure you have claimed the £2,000 (NIC) employment allowance where appropriate.

6. Be prepared for Pensions Auto-enrolment. As staging dates for employers with smaller numbers of employees approach so the system is likely to become more saturated - so start the registration process sooner rather than later. Also, have you budgeted for the additional workload for both setting up and running your scheme?

7. If considering new ventures away from farming could the Enterprise Investment Scheme (EIS) or Seed EIS help to get these going, particularly because of the useful CGT reliefs that they bring?

8. Review partnership structures that have corporate members to ensure that these do not fall foul of new anti-avoidance legislation that might negate any tax benefits previously enjoyed.

9. IHT reliefs should be reviewed to ensure that they have not been compromised by new activities or ventures, so avoiding any future unpleasant surprises.

10. Think about the 2015 general election and how this might affect the fiscal landscape. Are there any changes that you could make now that might help to insulate you and your business against any detrimental change?

Catherine Desmond said: "This is by no means an exclusive list. However it is likely that several of these tips will apply to businesses and where appropriate the necessary action should be taken.

"A number of areas such as investment allowances for plant and machinery for example, are time sensitive so, in order to gain the optimum benefit, early consideration should be given to the best way forward."

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 March 2015
Timber and Damp Proofing Technician
Unit 2, Manor Farm Industrial Estate, Poplar Road, Stretford, Manchester M32 9AN. Long and well established timber and damp p...

17 March 2015
Health,Safety & Risk Coordinator
Experience of the Cardinus Display Screen Equipment and carrying out DSE assessments would be extremely beneficial as would k...

14 March 2015
Business Operations Administrator
The key function of this role is to support the Managing Director with the management of their dairy, expenses and general ad...

12 March 2015
Mid / Senior Graphic Designer (copy)
Farm Creative Job Description Mid/ Senior Graphic Designer Minimum of 3 Years Experience, Salary Based on Experience Essentia...

18 March 2015
Sales Support /Administrator
Due to continued company growth, we are now recruiting a Sales Support / Administrator to work in our busy Sales & Commer...




Top stories you may have missed
23 March 2015 | Cattle

UK butchers face difficulties to recruit...

Butchers in the UK are losing a generation through lack of training opportu...


20 March 2015 | Arable

Dust - the secret fertiliser?

NASA research has revealed how dust blown from the Sahara desert helps supp...


19 March 2015 | Arable

The Budget 2015: A Farmer's Budget?

“In the run up to the Budget 2015 most commentators were predicting that th...


17 March 2015 | News

UK's first floating solar power system l...

The UK’s first fully operational floating solar panel system has been unvei...


13 March 2015 | Animal Health

Labour and Conservatives clash over badg...

Axing the badger cull in England and Wales will save more than £120 million...


12 March 2015 | News

Solar could be cheapest energy source by...

By 2025, solar power could become one of the cheapest forms of energy in ma...


11 March 2015 | Finance

English buyers turn their attention to S...

Demand for Scottish farm land remains strong and continues to be better val...


9 March 2015 | Cattle

2020 vision for the Welsh red meat indus...

The Welsh red meat industry should aim to increase sales by at least 34 per...


6 March 2015 | News

MP raises egg industry concerns on trans...

Fears about the impact that a proposed transatlantic trade agreement could ...


Stay safe and legal when flying drones

The use of Unmanned Aerial Vehicles and Unmanned Aircraft Systems - or dron...