Insights

Brexit and our departure from the EU and the CAP provide us with a unique opportunity to redesign agricultural policies to meet our environmental ambitions, while supporting our farming sector. Will DEFRA's new ELM scheme be a success? What are the risks and opportunities?

It has been a theme of every statement made by the Government (and particularly the Chancellor) throughout the pandemic, that there are winners and losers (or those who lose and those who really lose, given there can be no real winners).

The phrase “if anything should happen to me…” is a very common euphemism. Frankly, the first word should be “when” not “if”. COVID-19 has concentrated the minds of many on their own mortality and may be a timely reminder that will planning is really something which, by definition, cannot be put off forever.

Due to the current situation with COVID-19, we have seen a number of our clients opting back into the NHS Pension Scheme. This is primarily because of the enhanced death in service benefits that active members receive, morbid as it may sound.

In my previous article I discussed the The Agriculture Bill, its keys elements and the rejected amendments. The Agriculture Bill is the biggest piece of legislation for the farming and agribusiness industry for a generation.

As the reports surface of the UK economy contracting by over 20% in a single quarter, with over 600,000 job losses already and the furlough scheme soon to end, you’d be forgiven for having a conservative outlook on business right now.

Under the original furlough scheme, it was not permissible for employees to carry out any work while on furlough (with certain exceptions for training).

HMRC has postponed the introduction of the domestic VAT reverse charge for the construction industry until 1 March 2021. Initially this was to be introduced in October 2019, but was postponed until October 2020 to allow businesses to focus on Brexit preparations.

When I sit down to write these articles, I try to come up with a topical subject that is also useful to the potential readership. Sometimes that is easy and sometimes not so much! We had the subject of Brexit, a new Government, difficulties surrounding the Budget, and when that all seemed to calm down slightly, along came Coronavirus.

Recent months have seen undivided government attention to the COVID-19 pandemic. Whilst this remains at the forefront of the country’s mind, there are important decisions being made for the agricultural industry in the form of the Agricultural Bill (The Bill), Environmental Land Management schemes (ELMs) and the Basic Payment Scheme (BPS). 

The prospect for the future of farming looks, at best, somewhat cloudy at the moment. Faced with the proposed reduction in Basic Payments and the disruption caused by Coronavirus, many businesses will currently be looking at their landholdings with a view to tightening their belts (if they’re not doing so, they probably should be).

HMRC have announced that the Extra Statutory Concession (ESC) which exempts employer provided living accommodation from being a taxable benefit when made available to a ‘representative occupier’, will be withdrawn from 6 April 2021.

There has of course been a huge increase in employees working from home as a result of the coronavirus outbreak. The employer may have closed their premises, or employees may be following advice to self-isolate.

A recent report from Mark-to-Market titled ‘April 2020 valuation barometer’ painted a positive picture in terms of deal volumes and values achieved across the UK mergers and acquisition markets (M&A) for the period 1 January to 31 March 2020 (Q1).

Whilst the Government has communicated the support available for businesses and the self-employed, for many, navigating the numerous assistance packages available can be a confusing and stressful experience.

Profits (and losses) for farm businesses are known to fluctuate quite substantially year on year for a number of reasons which are often beyond the control of the farmer.  

During the current crisis it is important that we can continue to receive and process your accounts documentation. This can be tricky whilst maintaining social distancing. To help we are currently offering all clients the use of an online application called Receipt Bank at no cost, until October 2020.

The COVID-19 pandemic is touching all aspects of our lives. Even though the Government is providing comprehensive support through this difficult time, the personal financial circumstances of many will be dramatically affected by the crisis.

If you have previously dismissed claiming child benefit as your income is over the £60,000 per annum threshold, now is a good time to review your situation and maybe start to reclaim.

Many business owners will have been contemplating the sale of their business in 2020 and then along came COVID-19 and shattered their hopes and dreams.

The level of disruption to the country’s way of life is unprecedented. The spring planting season has, however, continued apace and whilst the recent flooding is still very much in our memory, agriculture has never had a more important role to play. There is plenty of work to do in the field, but the legacy of the recent winter will continue to affect rural business’ financial positions.   

Despite having helped many businesses with cash flow management issues in the early 1990s and 2008 economic crashes, I think we’re now living in a period where the phrase “cash is king” has never been so true.

When the government recently introduced the Coronavirus Business Interruption Loan Scheme (or CBILS), offering to guarantee 80% of loans made by banks, there was much hope that this would make a real difference for desperate businesses looking to survive through this crisis. 

Over the past few weeks, we’ve seen the Chancellor unveil an unprecedented number of financial measures to support those impacted by the Coronavirus. 

Last week, Rishi Sunak announced that self-employed people in the UK will be able to claim support worth 80% of their average monthly profits, in an “unprecedented” move to cover the impact of Covid-19.

When somebody dies, their personal representative must pay the inheritance tax (IHT) due by the end of the sixth month after the death. So, if someone died on 1 January 2020, the inheritance tax would be due for payment on 31 July 2020.

Some of you may be wondering how the current crisis is affecting Probate. Here’s what we know. 

With the current pandemic impacting on cash flows, this is a timely reminder to all businesses that a tax relief exists that could really help you in these challenging times.

In these unprecedented times, cash flow is likely to become a hot topic and cause for concern for many. 

HMRC have issued new guidance on how the coronavirus will impact on the Statutory Residence Test (SRT).