Fertiliser Price Tracker

[bankrupt]

Well we kinda did the same, whats point of not buyin the fert then being left with huge profit , pay the taxman then have to buy your crop in next winter.

Good luck with that if you ever get a major random 6 year tax investigation like we did.

 

[Springer Spaniel]

Just gone mad and bought next years AN for £650 / tn. Was lucky to get this years early for £270. So if I take the average over the two years its £460 / tn. Time will tell if this was wise or not, but I can't see this situation getting resolved any time soon.

 

[redsloe]

Are you actually suggesting that future years costs can be written off in the current?

Ahem, for certain it will be declared on the eoy balance sheet.........

 

[Steevo]

No, hes sayin might as well have the fert as pay the taxman.

That can be mitigated against somewhat with farmers averaging surely? That could be a safer bet if for some reason N prices fell by this time next year.

It also commits you to planting a crop, either this autumn or next in order to use that fertiliser….at any known grain price. And would/could also just be defer

Also remember that whilst you can claim 100% of the expense against tax…..the tax rate is only 20% or 40% so you aren’t saving the whole cost against your tax bill.

Not as simply as it might at first seem in so far as setting cash outflow off directly against another.

 

[Northern territory]

Don’t you just pay more tax the year after if you get two lots in the same financial year. So where are you gaining except having it on farm and the chance of it going up.

 

[bert]

@Springer Spaniel Whats the payment terms? i've inquired and its pay within 28 days which is a real stretch with cashflow

 

[Fendt516profi]

No, hes sayin might as well have the fert as pay the taxman.

Does that work exactly when we buy a load of fuel or straw near end of tax year our accountant always brings it up and says we assumed you had most of that in stock.

Just gone mad and bought next years AN for £650 / tn. Was lucky to get this years early for £270. So if I take the average over the two years its £460 / tn. Time will tell if this was wise or not, but I can't see this situation getting resolved any time soon.

I'd use the fert you've bought for next year this year when hopefully prices for crops will be good and maybe cover costs + and save your cheaper fert for next year then if prices for crops comes down you might still make abit

 

[Steevo]

@farmerdan7618 would know the proper answer to all of this.

I do remember seeing another accountant on here recently too but can't recall their username off the top of my head.

EDIT: It could have been @MCook

 

[bankrupt]

Ahem, for certain it will be declared on the eoy balance sheet.........

And AN bought for 2023 at £650 might be £900 for a March or September year end thereby substantially increasing the tax payable.

 

[muleman]

I suppose i wasnt meaning buy next years now , i was more meaning do you buy some for this year or not bother cos its too dear, if you dont bother you will pay more tax and have no grass to make silage and feed stock therefore incurring more expense further down the line
Could be wrong though.

 

[Steevo]

And AN bought for 2023 at £650 might be £900 for a March or September year end thereby substantially increasing the tax payable.

Book value and market value are different.

 

[Courier]

And AN bought for 2023 at £650 might be £900 for a March or September year end thereby substantially increasing the tax payable.

You need a different accountant if that's what they are suggesting.....

 

[bankrupt]

Book value and market value are different.

You need a different accountant if that's what they are suggesting.....

Still doesn't explain where muleman's tax saving is supposed to come from.

 

[Case290]

I think it can only go in the accounts when it’s delivered

 

[milkloss]

Whats the payment terms? i've inquired and its pay within 28 days which is a real stretch with cashflow

I was thinking the same..... obviously loads of cash about the way plenty are buying at current prices. Not to say they won't keep going up mind!

 

[Green oak]

I suppose you just pay the tax on healthy profits. If you ever wanted to borrow a large sum of money in the future. Least you can show the bank manager your able too service the loan. Am I right in that.

 

[muleman]

Still doesn't explain where muleman's tax saving is supposed to come from.

It definitely shows in the accounts, our tax year end is 5th april and accountant always asks what fertilizer is in stock and is it spread or not.
If we didnt bother to buy any surely therd be more tax to pay?

 

[Lincsman]

It definitely shows in the accounts, our tax year end is 5th april and accountant always asks what fertilizer is in stock and is it spread or not.
If we didnt bother to buy any surely therd be more tax to pay?

Fert is only tax deductible once spread, while in the bag its just stock at what it was bought for.

 

[Renaultman]

If your year end is coming up and you have had a decent year then not wrong.

As long as you forget it was there when you do your stock check

 

[bankrupt]

I suppose you just pay the tax on healthy profits. If you ever wanted to borrow a large sum of money in the future. Least you can show the bank manager your able too service the loan. Am I right in that.

What's badly needed now on March 23rd is for Sunak to reintroduce "stock relief" for trading businesses as was made available in the inflationary 70s.

This had the effect of stripping out the inflationary gain on stocks of inputs and outputs alike, before taxable income was determined.

Not to do this again now will lead to the tax payable on income becoming in effect a debilitating tax on capital as the real value of money erodes

Stock Relief (Hansard, 6 April 1976)

Stock Relief (Hansard, 6 April 1976)

api.parliament.uk