Reducing tax ?

[dirty harry]

ok what ways can you reduce tax bills?
I know the obvious is buy some kit & do some repairs etc but is there another way such as pensions & gifts etc if you don’t really need to buy any kit or do repairs?
Not on the diddle here btw, just thinking of ways to be “smarter “ with some hard earned $!!
Our accountants don’t seem very forthcoming with ideas, so also wandering along the lines of some sort of specialist advice if anyone knows /recommends anyone?
Cheers in advance dh

 

[Still Farming]

Some accountants are so crap you just as well ask the Revenue.
You place your trust in them to do your work and when they F it up you are the one who carries the can.

 

[exmoor dave]

ok what ways can you reduce tax bills?
I know the obvious is buy some kit & do some repairs etc but is there another way such as pensions & gifts etc if you don’t really need to buy any kit or do repairs?
Not on the diddle here btw, just thinking of ways to be “smarter “ with some hard earned $!!
Our accountants don’t seem very forthcoming with ideas, so also wandering along the lines of some sort of specialist advice if anyone knows /recommends anyone?
Cheers in advance dh

.

Bung a lump sum in your pension pot.

There's some rules on the max you can put in but it's quite alot anyway.

 

[Still Farming]

Ask all the big companies with offshore and Cayman island accounts best !!!

 

[wasted years]

Pretend you have less crops in store than you have?

 

[Courier]

Pretend you have less crops in store than you have?

Can bite you on the backside if tax rates increase, but it does give you time to invest in livestock which then loose money [emoji13]

 

[ollie989898]

Find an actual agricultural accountant. Such a thing does exist.

Just don't expect them to be cheap.

 

[Northeastfarmer]

Buy some sheep...they’ll soon reduce your tax bill...you’ll be skint in no time

 

[Kiwi Pete]

Set up your kids.

If you don't have kids, make some, they are the ultimate form of taxation.

 

[GTB]

Buy more land. You'll not have to worry about tax for a very long time....

 

[Still Farming]

Revenue want Tax off you even if you have Losses and NO PROFIT ???

 

[peterfarmer!]

Buy more land. You'll not have to worry about tax for a very long time....

What tax relief do you get

 

[nelson]

its only the interest that stops tax so you would have to borrow a lot to make much difference

 

[neilo]

Find an actual agricultural accountant. Such a thing does exist.

Just don't expect them to be cheap.

This. The OP's accountant doesn't sound very useful.

IIRC pension contributions are about the only way I think, other than bringing a few planned repairs/purchases forward. Also remember that advice on here is worth what you pay for it, far better to speak to a competent accountant in this instance.

 

[ollie989898]

5 year farmer averaging. Although if you are that good and make hideous profits every year it won't do you much good.

 

[Rowland]

Set up your kids.

If you don't have kids, make some, they are the ultimate form of taxation.

Flicking down through this thread I had to go back to this post as I thought it said " Sell your kids " bit harsh and not sure if it would save tax
Re read now

 

[rob1]

.

Bung a lump sum in your pension pot.

There's some rules on the max you can put in but it's quite alot anyway.

The trouble with putting it into pensions is the returns are very poor, you have no control over it after you have put it in and cant acccess it when you want it before the age limit, and even if it has made no money at all you will pay tax on any withdrawal after the 25% limit, of course a SIPP does allow you to invest in your own business but the costs are high unless you have a big pot

 

[jimcooke770]

Grow spring OSR

 

[Campbell]

Taxes seem a great investment. We get roads, public transport, hospitals, health care, houses, pensions, social security, the armed forces, waste collection, regular food supplies, etc etc etc.
What's not to like? ..........

 

[franklin]

Go Limited. Dont have to put the whole farm as a Ltd co, but you could quite easily split your machinery into a limited company. And it makes an easier structure to start passing it on to to the children.

Most of the tax breaks in the UK are designed for continued reinvestment and expansion, so if you dont want to do that you will have to stump up the £££ and have that warm feeling that school, libraries and hospitals are benefiting from your good fortune.