Farmer's Tax Win

HM Revenue and Customs has a longstanding policy of not reopening settled cases, even when subsequent decisions change the case law. So it was a significant victory for Doug Robshaw, tax manager at Haines Watts in Hereford, and his client when they persuaded HMRC to review a claim for Agricultural Property Relief (APR) on a farmhouse and secure a rebate.

The decision to appeal was promoted by the 2013 Tax Tribunal case (HMRC v Hanson) which successfully challenged HMRC’s view that APR could not be granted on farm houses where the surrounding land was not in common ownership.

The farmhouse was occupied by the deceased’s son, who farmed the land, but the ownership of the land had been split between family members.  The tribunal found the occupation of the land was also relevant in assessing eligibility and APR was therefore granted on the farmhouse.  The situation where farmland is not in common ownership with the farmhouse is not usual, but HMRC’s willingness to review settled cases is.

Although the client’s circumstances were similar to Hanson – he owned and farmed the land but prior to her death his mother owned and occupied the farmhouse – there was no guarantee that HMRC would reopen the case which dated back to 2009.

However Doug, having previously worked for HMRC for 12 years, had a good understanding of how the system works and the best approach. “Having submitted the necessary paperwork, I engaged with the tax inspector who originally handled the case and there was a continued dialogue throughout the whole process. This was I was able to move the case along and provide supporting evidence.”

“I think I was also assisted by a general tide of good will towards a farming community facing adversities after the recent floods.”

Both Doug and his client were delighted when HMRC agreed to refund the Inheritance Tax paid on the farmhouse, which amounted to £120,000 along with £9,500 of accrued interest.

Doug feels the decision opens the doors for others to claim APR retrospectively.  But he added: “Each case needs to be assessed on its own merit. Potential claimants need to ensure they get expert advice on whether to proceed or risk incurring professional fees.” 

For  farm tax or agricultural advice contact Haines Watts North Devon and Haines Watts Rural Business LLP 

www.hwca.com/accountants-north-devon

01237 471736

northdevon@hwca.com

South West Farming Consultancy warns farmers deadline for claiming Single Farm Payment looming

Haines Watts Rural Business is busy helping farmers across the region apply for the 2014 Single Farm Payment (SPS) which is due by the 15th May 2014.

The farming consultancy which assists farmers across the South West with grant funding applications and agricultural advice, understands that in 2015 paper claim forms will not be available and claims will have to be submitted via the new online claim system.

Crops planted in autumn 2014 will fall under the Basic Payment Scheme (BPS) rules when it begins in January 2015; the BPS rules include greening which contains crop diversification and ecological focus area’s which will affect some farms. 

Haines Watts Rural Business LLP provide a unique combination of agricultural and financial expertise to rural business in the South West. The firm offers both personal and business support to managers and owners to develop and put in place tailored farm strategies, annual plans and improvement projects together with technical advice.  In addition they provide grant advice and assistance with applications including RDPE grants and offer practical advice on planning applications. 

Haines Watts Rural Business farming consultant Lucy Thomas says:  “We are helping busy farmers to complete SPS 2014 forms in preparation for this transition.   The Common Agricultural Policy (CAP) is proposing to have future claim forms submitted digitally by default from next year; as a result we are actively encouraging and assisting farmers to complete their 2014 SP claims on-line this year.  In addition farmers need to start considering crop planning for the autumn; in preparation to comply with future greening/ cropping legislation for the new rules and regulations for the new scheme which transfers on the 1st January 2015 to Basic Payments Scheme (BPS)."

The deadline for RPA to receive SPS 2014 applications (without penalty) is midnight 15 May 2014.  For any assistance with SPS, planning for BPS or completion of SPS forms (either online or paper format) or any agricultural consultancy advice please do not hesitate to contact Lucy Thomas HWRB

M: 07711002786 or lthomas@hwca.com

www.hwca.com/agricultural_consultants

Dairy farmers make sure you take care of your profits

Mike Feneley, Partner with Haines Watts Rural Business talks about the upsurge in profits for Dairy farming businesses and offers sound advice on how farmers can use these effectively over the coming year…

Dairy farming profitability is on an upward path due to better milk prices, better climatic conditions and more attractive costs of production giving great opportunities to the dairy farming community.  It is a time where businesses need to plan carefully to ensure they utilise any extra profits effectively for the future.  There is no doubt that there will be many suppliers to the dairy industry who will be licking their lips in anticipation of the sales that they can make due to the extra profits being made within the industry.  It is vital for any dairy farming business and for any business to ensure that those hard won profits are used efficiently to achieve their objectives.

Mike comments; “Currently there are fabulous opportunities available for dairy businesses. It is an excellent opportunity to drive business forward in a positive way, however, farmers must ensure they plan it effectively so they are not disappointed by the results.  Hopefully during the year ahead it will allow dairy farmers to produce some really positive results which can reward them not only financially but also in the sheer pleasure of running an effective dairy farming business.”

Looking ahead to the next twelve months Mike recommends giving thought to the following:

-          When you are looking to the next twelve months firstly focus on the basics of running an effective and profitable dairy business, before you start adding extras.  For example, make sure that your soil PH is the correct level to make good use of your nutrients before you start buying a special trace element fertiliser.  There are many areas of a dairy business where you can get distracted by adding extras first. The most profitable dairy businesses focus on getting the basics right first.

-          Make sure whatever investment you are planning enhances the use of the assets you currently have available.  The assets you have available include your own likes and dislikes in terms of the type of system you like to run.  Remember if a businessman enjoys what they are doing because the system they are operating suits them, then they will always achieve the better results.

-          Be careful in your investments to ensure that they do not add extra complexity to your existing farming business.  In my experience adding complexity to a business often adds extra cost that doesn’t necessarily create any extra margin.  Try to keep things simple and streamlined in whatever farming system you are running to get the best possible results from your efforts. Make sure your investments are fully researched, getting guidance from independent people who have experience in that area.

-          Focus your investments on achieving your own business and personal goals.  Do not get distracted by investing in your business based on fads and fashions that others may try to sell you.

-          When making additional profits if there are not obvious investments you need to make consider building financial strength by either debt repayment or building your credit balances.  This may sound a little old fashioned but it is far better to build financial strength in a business than it is to spend on capital investment that may not be appropriate for your farm at that specific time. Remember that investments in a buoyant period are often more expensive. Always make sure your business is financially strong before any potential downturn as there are often better value investments in those periods.

-          When you are contemplating your investments for the future work closely with your accountant to ensure that they are purchased in the most tax effective way.  Remember to make the decision on a commercial basis first and then get the tax situation sorted after you have made the right commercial decision.

www.hwca.com/agricultural_consultants

Farming Consultancy offers South West farmers assistance with Grant applications

Haines Watts Rural Business farming consultant Lucy Thomas has been kept busy helping agricultural clients to apply for the latest round of ‘Catchment Sensitive Farming’ Capital Grants at various locations around the South West.  

The scheme is part of the Catchment Sensitive Farming project which provides advice to farmers to help them implement changes in farming that reduce the risk of both water pollution, and the regulation being applied to farming to achieve required water quality standards.  Catchment Sensitive Farming (CSF) delivers practical solutions and targeted support to enable farmers and land managers to take voluntary action to reduce diffuse water pollution from agriculture to protect water bodies and the environment.  

Mike Feneley, Partner and Lucy Thomas, Farming Consultant of Haines Watts Rural Business LLP 

A joint project between the Environment Agency and Natural England, it is funded by Defra and the Rural Development Programme for England, working in priority catchments within England. The Catchment Sensitive Farming Capital Grant Scheme (CGS) is open for applications from 1 February to 31 March 2014 with successful applicants having works completed by 31 January 2015.

Haines Watts Rural Business LLP provide a unique combination of agricultural and financial expertise to rural business in the South West. The firm offers both personal and business support to managers and owners to develop and put in place tailored farm strategies, annual plans and improvement projects together with technical advice.  In addition they can provide grant advice and assistance with applications including RDPE grants and offer practical advice on planning applications.  


Lucy Thomas, Farming Consultant – Haines Watts Rural Business LLP says:  “There are many opportunities to apply for agricultural grant funding and we offer a personal service to our clients to make them aware of what is out there and also help secure funds.   The hard-working farmers work very long hours whilst constantly battling against the elements, particularly with the severe flooding in the early part of this year.  As a result they may not be aware of what is available for them.  Also it’s not easy to find the time to complete the paperwork and this is where Haines Watts Rural Business steps in.  My role as farming consultant is to take this extra work off their shoulders and ensure that we put in the best possible bid to give a better chance of securing funding, particularly in such a competitive market with limited funds available.”

One of Lucy’s farming clients who utilised her expertise to gain a successful grant application for the (CSF) 2013 scheme is dairy farmer Andrew Allin of RJ Allin & Sons, based at Clawton, Holsworthy.   Lucy assisted Andrew throughout the application process by completing the necessary forms and arranging meetings with CSF officers.  She then organised the submission of the CSF form with the items Andrew required and how they would benefit the farm and were most suited to the scheme. 

The farm with 230 dairy cows and 450 acres is in the ‘Catchment Sensitive’ area of Tamar Tavy and the application was for some hard-standing cow tracks to be installed with fencing alongside.  Lucy worked closely with Andrew to achieve the items of particular interest for funding in this catchment to:

• Reduce run-off of soil and nutrients into watercourses from yards and field
• Reduce potential damage to soil caused by vehicles and/or livestock movements or grazing during wet conditions
• Improve field operations to limit sources and pathways for soil wash and run-off into water courses
• Reduce the requirement for spreading manure and slurry at times that can result in a high risk of run-off

 Lucy calculated eligible areas to maximise the grant funding on behalf of her client and even applied for an extension as work was delayed due to some of the worst flooding seen in the area for many years.   

Andrew Allin, RJ Allin & Sons, Holsworthy says: “The service offered by Lucy at Haines Watts Rural Business was invaluable. She really knows her way around the forms and goes that extra mile by getting in touch with the relevant bodies to gain maximum funding.  The works had to be completed by 28th February this year, however due to the severe wet weather conditions, this was delayed as we could not gain access to the land.  Lucy contacted Natural England on our behalf and successfully negotiated an extension which has given us peace of mind.”


www.hwca.com/agricultural_consultants

Rural consultancy hosts Cowsignals training day

A bespoke Cowsignals® workshop organised by Haines Watts Rural Business LLP attracted 50 dairy farmers from across Devon and Cornwall. The basis of Cowsignals® is observing the cow’s body language and translating it to management. It lays a solid foundation for the management of farms and helps to demonstrate how to monitor and improve management to ensure that farmers and cows are achieving optimum health, performance and welfare on farms.

Lucy Thomas ­ Haines Watts Rural Business / Emily Bates ­ Cornish Mutual / Mike Feneley ­ Haines Watts Rural Business / David Wilde ­ Certified Cowsignals Trainer / Bruce Forshaw ­ Harpers Home Mix 

   

The special training day sponsored by Cornish Mutual and Harpers Home Mix Ltd with funding accessed via Healthy Livestock, was held at Shernick Farm, Bridgerule in Holsworthy, a family partnership of Husband and wife Trevor and Ingrid Bray and their son Richard with a total dairy herd of 350 cows. 

The Cowsignals® concept developed by Jan Hulsen and Joep Drissen of training company Vetvice based in the Netherlands is active in over 45 countries.  The basis of the training is to observe cow’s body language and translate it to management to help prevent disease and have happy cows.   

Haines Watts Rural Business appointed David Wilde a Ruminant Nutritionist and Product Manager for Massey Feeds, sister firm to Harpers Home Mix Ltd, as the trainer for the day. 

A Cowsignals® master trainer for over two years David’s full-day training included both theory and practical exercises for the farmers.  The group looked at cows, and David demonstrated where farmers can learn to pick up the cow’s signals and use them effectively.   

David Wilde, Certified Cowsignals^® Trainer says: “The concept was devised in 1997 by Dutch vets as a tool for dairy farmers to reassess and revaluate their herds and look at what they are telling us.  Over the last 4 – 5 years it has moved at a rapid pace worldwide and is now in trained in nearly 50 countries.  It gives a fascinating insight into what the cow is telling us and what small changes may make a world of difference to her.  Cows give out signals all the time about the environment in which they are living and whether they are happy or discontent.  Cows don't know how to lie and the purpose of the training day was to educate farmers to recognise the host of signals they give and to recognise how they are feeling.  Farmers can then interpret this body language and act on it.  An example is are we doing the best we can in the housing area during winter to mimic the natural and healthy outdoor environment?  Content and comfortable cows who are eating well provide better milk and higher fertility, which is something farmers should take very seriously.”

Haines Watts Rural Business LLP provide a unique combination of agricultural and financial expertise to rural business in the South West. The firm offers both personal and business support to managers and owners to develop and put in place tailored farm strategies, annual plans and improvement projects together with technical advice.

Lucy Thomas, Farming Consultant – Haines Watts Rural Business LLP says:  “We wanted to organise this special event to give our farming clients the tools they need to do their job more effectively and help to have a more profitable business as a result..  The invaluable training and expertise given by David means that they will have healthier and more content cows which in turn will increase the milk yield and help them to make more money and grow the business.  It was also a great way of bringing our farming clients together to share their own knowledge and experience.  The feedback has been very positive and it has proved to be a very successful and worthwhile day.”

One of the farmers who took part in the training was new business owner, Jim Tucker of Larrick Farm based in Launceston.  A former dairy farmer he gave up the original business in 1999 when interest rates were high and has been a part-time farmer and builder for the last 12 years.  Six months’ ago he set up a new dairy farm business with 60 cows and uses the revolutionary Robotic Milking System which works 24/7 which means he can monitor the milking remotely as any problems are texted to him on his mobile phone.

He says: “I am fortunate in that as a brand new business I have a modern and high-spec farm and it was reassuring to find that many of the infrastructures and practices I have put in place were recommended by David Wilde to create the right environment for a happy herd.  I really enjoyed the training day and to have an expert guide us through what signs we should be looking for.  It was also very beneficial to come and see a large and successful working farm and share experiences with other farmers.”

Shernick Farm, Holsworthy was the host farm for the event.  Co-owner Richard Bray comments:  “We have developed a long-term relationship with Haines Watts Rural Business who have helped us make improvements to the farm  and also as importantly tell us what we are doing right in order to grow the business so  we were more than happy to host this event on their behalf.   It was a great day and a fascinating subject.  The group were all progressive farmers who saw the benefits of giving up a day working on their farms to get invaluable expertise and knowledge from an expert on how we can make our herds more comfortable and have happier and healthier cows. It was also a good opportunity to talk to fellow-farmers and share information.”


www.hwca.com/agricultural_consultants 

New name - old faces at Holsworthy Show

‘Main ring sponsor’ Haines Watts North Devon LLP were proud to host a pavilion to help celebrate their 1^st anniversary in aid of Devon Air Ambulance Trust (DAAT) at this year’s Holsworthy and Stratton Agricultural show...

John Edwards, Mike Feneley, Sarah Bowden, Jonathan Gifford, Caroline Creer (DAAT) Nick Rimmer, Patrick Tigwell, Lisa Crockford & Vince Edwards

A national network with over 50 offices, each Haines Watts office operates independently offering a wide range of services tailored to the local market.  The Bideford office primarily focuses on agricultural, consulting, accounting and tax planning services to owner managed businesses and in particular farmers and dealing with individual’s tax affairs.

Sully & Co (Bideford) joined award-winning Haines Watts Group in August 2011; a merger that has enabled the firm to offer a broader range of services. 

Managing Partner John Edwards having served the local farming and business community with passion and enthusiasm since 1985 continues to keep a hands-on approach whilst maintaining close client relationships. 

“In an ever growing and changing marketplace I recognised the need to offer my clients a more specialist range of services, expertise and knowledge whilst keeping the all important close and personal relationship. Haines Watts has the advantage of local knowledge coupled with the backup resources of a nationwide network which means that we can now cost effectively offer more sophisticated solutions to client’s issues and problems backed up with a brand they can trust.”

Each of the senior partners comes from good farming stock and with over 350 agricultural clients on their portfolio, Haines Watts North Devon LLP fully understands the modern-day challenges faced by the agricultural sector and how essential specialist advice is. Partners John Edwards, Mike Feneley, Vince Edwards and Jonathan Gifford have over 100 years’ combined experience in advising and supporting South West farmers, landowners, agricultural suppliers and their customers. The team analyses challenges and opportunities, offering practical solutions in accounting, tax planning, retirement and succession.

Haines Watts were delighted to be joined by Devon Air Ambulance, who organised a charity raffle for the chance to win some fabulous prizes, with £214.63 raised. Heart Radio were also on hand to interview some of Haines Watts clients on current issues surrounding the farming industry.