News
Strategic Tax Management: Reducing the tax bill for Farming Families and Businesses
04 Dec 2023
I understand that managing tax obligations is crucial for farming families and their businesses. Effective tax management can significantly impact your financial well-being, allowing you to reinvest in your operation or achieve personal goals. I’ve outlined some key strategies to reduce tax burden while adhering to the law.
Keeping Accurate Records: The foundation of effective tax management is maintaining accurate and up-to-date accounting records. By tracking your expenses, you can ensure you claim all legitimate business expense deductions, preventing unnecessary tax payments. Many software and systems are available to support this.
Tax Incentives for Innovation: Tax incentives for innovation in farming include R&D tax credits for incorporated businesses. Eligibility and availability can vary.
By Kathryn Rawlings,
Rural Director at WR Partners
Optimising Business Structure: Choosing between a partnership and a company structure has significant tax implications. While companies may face increased tax payments based on their profits, partnerships might find themselves burdened by the forthcoming basis period reform. Navigating these intricate decisions requires expert guidance, especially in an industry as unique as farming. We can help you choose a path that aligns with your business goals, family aspirations, and financial well-being.
Timing of Expenses: Farmers can strategically time expenses to maximise tax savings. Bringing forward planned expenditure of repairs or machinery can help lower taxable income and reduce the overall tax burden. These are just some of the tactics which could be used as part of the annual tax planning strategy.
Managing your businesses tax liability effectively requires careful planning, accurate record-keeping, and staying informed about tax changes. We can help you stay compliant, save on taxes, and free up your time to focus on running your farming business.
Get in Touch
We love meeting new, exciting businesses. Get in touch with our team to see how we could enhance and protect your financial position.
Or if you’d prefer to speak to someone directly just give us a call on: 08000 664 664 or email: hello@wrpartners.co.uk.
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