Recently in Farm office Category

Precision farming doesn’t come cheap but could improve efficiency, which makes some of the kit eligible for grant funding through the Farming & Forestry Improvement Scheme, points out Mark Wheeler of Brown & Co, Spalding.

This is part of the Rural Development Programme for England and aims to help farming, forestry and horticultural businesses in England use resources more efficiently. It provides grants of between £2,500 and £25,000 to invest in projects and new machinery which enable environmentally friendly growth of the business.

In previous rounds, Brown & Co has successfully gained grant funding for projects including on board and base station GPS technology, claiming 40% of the capital cost. Electrical efficiency devices such as inverters for grain drying fans and rain water harvesting and storage projects are also eligible. Applications for the current round of the scheme must be made by 17 July.

The Institute of Agricultural Management’s annual survey of farm managers’ pay and conditions aims to answer this question by providing objective and up to date information about pay and employment conditions.

Farm managers and managers of farm business units are invited to take part in the survey and submit responses by 25 May. The survey is open to both members and non-members of IAgrM and information is given in confidence.

To request a form please contact the Institute of Agricultural Management on 01275 843825 or email victoria@iagrm.com
 
 

Farmers need to regularly check their sums insured - increases in commodity and farm input prices mean that some may not be adequately covered, warns rural insurer Cornish Mutual which has about 24,000 members across Cornwall, Devon, Dorset and Somerset.

“Most farmers usually look at their policies on a yearly basis, but because the cost of commodities such as red diesel, domestic fuel, oil, grain, chemicals, fertilisers and livestock are changing all the time, they need to take account of this and review them more often,” said Philip Wilson, business development manager at Cornish Mutual.

“We’re also seeing increasing investment in new machinery and buildings on the region’s farms and if farmers have bought equipment, perhaps a vehicle or piece of expensive kit recently, it’s important they speak to their insurer to make sure they‘re covered. If they don’t, they could find they are significantly underinsured when it’s too late.”

Keeping pay rates on the right lines is essential and following our employment feature last week, Agricultural Wages Board member Matthew Belsey has pointed out the need to be aware of variations between the agricultural minimum wage and national minimum wage rates.

For example, agricultural minimum wage at its basic (initial) grade 1 is 2p an hour higher than the national minimum wage. This applies even to casual workers employed for fewer than 30 weeks (applies from day one to 30 weeks).

Workers doing a mix of agricultural and non-agricultural work must still be paid at agricultural minimum wage for agricultural work and at the national minimum wage for non-agricultural work. The Agricultural Wages Order sets out a list of the employment types covered and is still in force, correct minimum rates must be observed.

Do you own manorial rights? These can have significant value and need to be registered by 12 October 2103 with the Land Registry if they are not to be lost.

Traditionally, manorial rights were held by the owners of estates over their lands and could include the right to hold a title, access rights, sporting or shooting rights and mineral rights, explains solicitor Matthew Knight of Knights Solicitors.

“In addition, there could be the right to hold a fair or market, and rights over common land or grass verges, as well as obligations about upkeep and maintenance. As estates were broken up, and the land sold off in freehold parcels, very often these manorial rights remained with the original estate.”

However, registration can be a complex process - proof of ownership is needed and this may involve considerable research. Manorial rights are different to Lordships of the Manor, which can still be registered after October 2013.

Look out for changes in the 2012 SPS rules says Robert Sullivan, farming consultant with Strutt & Parker, Morpeth.

This year’s booklet is a supplement and so must be read in conjunction with the 2011 Guidance Notes. Anyone transferring SPS entitlements into the farming business for the 2012 scheme year needs to make sure that the RLE1 form is received by the RPA before the 2 April 2 deadline.

Remember changes to field boundaries need an RLE1 form with a map clearly showing any alterations so the Rural Land Register maps can be updated.

New crop codes will be introduced for 2012 - read carefully to avoid potential delays or penalties being applied to your claim.

The classification of scrub as an ineligible feature may require some changes to field areas on which farmers and landowners can claim.

Consider submitting claims through the SPS online service, says Mr Sullivan. On-screen checks, instant proof of receipt, no postage costs or delays are some of the benefits of this method, which is open for applications now.

 

 

 

 

 

Cumbria based accountant Dodd & Co has come up with a brilliant tool to help businesses work out how much Annual Investment Allowance they are entitled to.

Most farmers know that the AIA drops from £100,000 a year to £25,000 from April 2012.
However, working out just how much AIA you have available is complicated if your accounting year end does not coincide with the tax year.

The Dodd & Co calculator will do this for you in seconds - all it needs to know is whether you trade as a company or otherwise and what your year end is. It really couldn’t be simpler.

HMRC is once again warning farmers to be vigilant against bogus emails telling taxpayers that they are due a tax refund.

The emails are the latest in a series of scams which encourage people to hand over bank details and then have money taken illegally from their accounts.

Rob Hitch, partner at Cumbria based accountant Dodd & Co, advises clients not to open the emails or click any links.

“HMRC will rarely contact you by email. If you’re at all concerned visit http://www.hmrc.gov.uk/security/index.htm to see if the email you have received is listed.”

Any suspicious emails should be forwarded to phishing@hmrc.gsi.gov.uk and then deleted.

Sole traders and rural businesses have been urged to get their online tax returns completed in plenty of time, following a clampdown by HM Revenue & Customs.

Online Self Assessment forms must be completed before 31 January 2012, but rural accountant Old Mill said that 1.5m taxpayers were fined for late filing in 2011, 8% more than 2010.

“With a standard late filing penalty of £100, the sum of 1.5m penalties represents a minimum of £150m income for the Exchequer,” Old Mill partner Mike Butler said.

HMRC has altered the penalty system in recent years and taxpayers will be charged a penalty for late submission even if no liability is due, he warned.

“I would urge everyone who has failed to meet the paper return deadline of 31 October to file online before 31 January, even if they are not expecting a liability to be due.”

Rural businesses submitting paper copies of their self-assessment tax returns have just a few days left to do so.

Paper tax returns must reach HM Revenue & Customs by midnight on 31 October, or a heavy penalty could be imposed, Richard Cartwright from Saffery Champness warned.

“Even if you are one day late there is a fixed penalty of £100 which applies even if you have no tax to pay or have paid the tax you owe. If your tax return is three months late, you'll have to pay a penalty for each additional day it is late. If it is six months late, you'll have to pay a further penalty and another final penalty if it is 12 months late.”

In a few cases the deadline could be delayed, but only if this has been confirmed by HMRC. If the paper tax return cannot be returned on time, there is the option of filing it in online by 31 January 2012.