RfM has been providing accounting services for farming and rural businesses for over 100 years. We understand that the challenges faced by farmers are quite different from those of a typical business owner.
The farmer’s business is conducted out in the field, in the barn or milking parlour and at the auction rooms. They quite literally get their hands dirty managing their ‘stock’ (and keeping it fed and healthy) and must be on hand to deal with business problems 24/7, every day of the year.
Just as the farmer’s business is exceptional, accounting for agriculture, farming and rural business is a specialist area that requires particular expertise and an understanding of the industry.
Whilst we don’t claim to know how to milk a cow or shear a sheep, we do pride ourselves in giving expert advice. We keep on top of current legislation to help our rural clients be profitable and tax efficient, now and in the future.
We can provide help in these areas (and more):
We’ll advise on the most tax-efficient and secure way to structure your business.
The Government has changed the rules for averaging profits for farmers; we can guide you through what this means to you.
Livestock – the herd basis
For tax purposes, farm animals are usually dealt with as trading stock. This means that the costs of animals are deducted from monies received when the animals are sold and any resulting profit is taxed as income. Farmers can elect to treat qualifying ‘herds’ of animals and we can advise on the best way to do this.
We can advise on VAT issues that commonly affect agricultural business. For example, when a 4×4 vehicle is classified as a car (and therefore not reclaimable) and when it is a commercial vehicle.
We make sure our farming clients comply fully with current VAT legislation including the rules for zero-rated sales such as livestock and crops, and in relation to income from contracting.
We keep up to date with current tax rules to ensure our farming clients make the most of capital allowances and save on tax.
The right time to replace or purchase new assets, plant and machinery isn’t necessarily the obvious one. We can advise you on the most tax-efficient way of acquiring new assets to make use of allowances and reliefs.
Entrepreneurs’ Relief (ER)
ER can reduce the rate of Capital Gains Tax (CGT) on the sale of land from 28% to 10%. We recommend you get expert advice before the sale takes place to ensure that it qualifies for the 10% rate.
Inheritance Tax (IHT) and succession planning
IHT is not always straightforward for farmers but, with careful planning, the tax bill can be reduced or eliminated in most cases. We can also help put plans in place for when the business passes to the next generation.