26 January 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


7 January 2015
Weekend Pot Washer
Weekend pot washer vacancy available at Denstone Hall Farm Shop. Must be able to work either Saturday or Sunday or both....

11 January 2015
Senior Authorised Person
Training and mentoring service technicians to take on the front-line switching activities at wind farms. Control of HV operat...

19 January 2015
Network Engineer; (OSI, TCP/IP, Juniper, Linux)
Network Engineer; (OSI, TCP/IP, Juniper, Linux) Are you a 'techno whizz kid' with a natural talent for troubleshooting comple...

21 January 2015
ASSISTANT MANAGER
Develop your skills by preparing and serving a great range of delicious grills, spit roasts, farm assured chicken and fish......

6 January 2015
Apprentice Administrator- intermediate
Their companies manufacture products for a variety of global industries, including chemicals, plastics, automotive, aviation,...




Top stories you may have missed
12 November 2014 | Arable
GM crops 'good for farmers and the envir...

GM crops 'good for farmers and the envir...

GM crops are good for the economy and can reduce the amount of pesticides u...


6 November 2014 | Cattle
Smaller European markets drive beef expo...

Smaller European markets drive beef expo...

Demand from smaller European markets has helped drive strong growth for UK ...


6 November 2014 | Agri Safety
Lack of engineers a 'ticking time bomb' ...

Lack of engineers a 'ticking time bomb' ...

A lack of engineers, not enough people promoting the land-based industries ...


4 November 2014 | Bees and Beekeeping
Bee action plan due: Last chance for bee...

Bee action plan due: Last chance for bee...

Environment Secretary Elizabeth Truss is launching the National Pollinator ...


4 November 2014 | Arable
Experts welcome financial boost for youn...

Experts welcome financial boost for youn...

Agricultural specialists have welcomed a potential financial boost for youn...


3 November 2014 | News
Supermarket competition on prices 'risks...

Supermarket competition on prices 'risks...

As retailers continue to participate in a highly competitive race to the bo...


31 October 2014 | Arable
New Defra farm figures 'underline volati...

New Defra farm figures 'underline volati...

New farm business income data from Defra, which focus on income from March ...


30 October 2014 | Agri Safety
Agriculture remains one of UK's most dan...

Agriculture remains one of UK's most dan...

Agriculture has remained one of the industries in which workers are most li...


29 October 2014 | Finance
UK farmland prices see 'substantial grow...

UK farmland prices see 'substantial grow...

Prime arable land in the UK has seen a substantial year-on-year growth in p...


27 October 2014 | Arable
Satellites to help farmers pinpoint dise...

Satellites to help farmers pinpoint dise...

A new mobile app for farmers able to pinpoint and identify disease, pests a...