Low-profit farmers due tax credit

By Farmers Weekly staff

FARMERS making little or no profit, who have modest savings and dependent children should qualify for the governments new working families tax credit.

Maximum relief is available to those who earn under 4755/year, with less than 3000 savings.

For a working family with two dependent children, this could be worth 115/week, or nearly 6000/year.

“Even when earnings are 200/week, a family with three dependent children could be entitled to over 80/week,” says David Missen of accountants Larking Gowen, adding that several of his larger Norfolk farming clients are likely to qualify.

“And though the benefit is earnings related and runs out when savings exceed 8000, the good news is that business capital, such as the farmhouse, land, machinery and livestock, do not count towards this total.”