Running a Bed & Breakfast business from your farmhouse can introduce some diversified income into the family and make use of some unused bedrooms.
Such an enterprise can also be tax-efficient. A farmhouse Bed & Breakfast business qualifies for the rent-a-room allowance, which has increased to £7,500 per annum from 6 April 2016.
Mark Grimshaw, the chief executive of the Rural Payments Agency (RPA), recently presented to the Tenant Farmers Association Recommended Professionals Meeting in London. One of the main items on the agenda was the progress of 2016 Basic Payment Scheme receipts and I have summarised some of the discussions below.
The UK’s choice to leave the European Union has both short and long term implications for British farmers and landowners.
Since the referendum result was announced in June, the pound has fallen significantly. This has facilitated an increase in crop prices, which – whilst still below the cost of production for many farms – will provide a welcome cash boost for any farmers with unsold produce from the 2016 harvest.
Legislation is currently being progressed through parliament to enable farmers to choose between averaging their profits over two years, five years or not at all. The rules take effect from the 2016/17 tax year.
Farmers will only be able to average their profits if they meet a volatility test, i.e.