Farmers on the march

[ajohn]

Farm Business Income by type of farm in England 2023/24

www.gov.uk

But farmers are inclined to switch to where the money is and may go into things like cheese and ice cream. There seems to be some sort of allowance for industrial buildings.

 

[motorbiking]

obviously - they then asked the obvious - how much profit does a farm like this make.

Assuming high value land with high performing yield, based on the numbers already posted. The farmer would be short 50% of the tax bill at the end of the 10 years. I've already done these figures..

 

[ajohn]

Do they pay tax on the yearly cost to keep the farm?

I don't rate the gov page on their income - more info is needed especially on the very low one.

 

[motorbiking]

reposting

Updated arable farm profit forecasts for harvest 2024

Forecasts for profitability from harvest 2023 and for harvest 2024 from Strutt & Parker’s arable farm profitability model

rural.struttandparker.com

 

[motorbiking]

Do they pay tax on the yearly cost to keep the farm?

I don't rate the gov page on their income - more info is needed especially on the very low one.

what sort of tax do you mean?
Corporate tax?
Business rates?
council tax?

 

[blup]

No letter required.

Your tax bill is X, you pay X+Y, Y sits there until you claim the overpayment, if you don't they keep it. There are a few days delay in synchronising payments with self assessment due. The obligation is on you to claim it back.

Feel free to test it:

sort code: 08 32 10.
account number: 12001020.
account name - HMRC Shipley.

Sounds like a horizon system

 

[motorbiking]

I've been caught out before, since I sometimes do my tax returns in two goes (within the time limit). You pay the balance due and when you update with the second wave of calculations it doesn't account for the payment made, so it tells you, you owe more than you do. A week later it balances out and you are in credit.

 

[ajohn]

what sort of tax do you mean?
Corporate tax?

Some may pay corporation - I suppose otherwise income. The yearly costs of the "loan" form an operating cost.

 

[motorbiking]

what loan? The IHT? It's not a loan, its a deferral.

 

[ajohn]

what loan? The IHT? It's not a loan, its a deferral.

What ever it is it forms an operational cost. How would it be handled re taxation - pass