How we saved a West Norfolk farming business £9,600 through proper structuring
Client J runs a mixed arable and vegetable-production farm near King's Lynn supplying the region's food sector, 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, harvesters 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.