How we saved a Herefordshire farming business £9,400 through proper structuring
Client J runs a mixed farming and cider business near Hereford, with fluctuating profits from year to year and a recent large machinery investment. The previous accountant hadn't used farmers' averaging to smooth the volatile profits, hadn't fully claimed capital allowances on the machinery, and hadn't reviewed the structure for the family members working on the farm.
We reviewed everything specific to farming. We applied farmers' averaging to smooth the fluctuating profits across years and reduce the higher-rate exposure in the good year, claimed the full capital allowances on the tractors and machinery under the Annual Investment Allowance, brought the family members into a proper structure, and reviewed the position for Agricultural and Business Property Relief for the future.