Agricultural Industry Update 2018
- 1. Axminster 揃 Barnstaple 揃 Bideford 揃 Bridgwater 揃 Burnham on Sea 揃 Crediton 揃 Exeter 揃 Holsworthy 揃 Honiton 揃 Ilfracombe 揃 Okehampton 揃 Plymouth 揃 Seaton 揃 Somerton 揃 Tiverton 揃 Torquay 揃 Weston super Mare
- 2. Axminster 揃 Barnstaple 揃 Bideford 揃 Bridgwater 揃 Burnham on Sea 揃 Crediton 揃 Exeter 揃 Holsworthy 揃 Honiton 揃 Ilfracombe 揃 Okehampton 揃 Plymouth 揃 Seaton 揃 Somerton 揃 Tiverton 揃 Torquay 揃 Weston super Mare
- 3. By Your Side. On Your Sidewww.thomaswestcott.co.uk EU PRODUCTIVITY GRANTS CLOSED TO ALL NEW APPLICATIONS!!! LEADER 100% Successful applications - 贈109,796 Countryside Productivity Grants (Robots) Applications being appraised by RPA - 贈620,693
- 4. By Your Side. On Your Sidewww.thomaswestcott.co.uk GRANTS STILL AVAILABLE Natural England - Countryside Stewardship scheme under EU rules RPA BPS Water Authorities under local need Local Authorities
- 5. By Your Side. On Your Sidewww.thomaswestcott.co.uk LAST CHANCE!!! Small Countryside Productivity Scheme Reopens early 2019
- 6. By Your Side. On Your Sidewww.thomaswestcott.co.uk WHATS NEXT The Environmental Land Management Scheme Clean Air Strategy 2018. We will require and support farmers to make investments in the farm infrastructure and equipment that will reduce emissions. A future environmental land management system will fund targeted action to protect habitats impacted by ammonia National Air Pollution Control Programme March 2019 National Code of Good Agricultural Practice to Control Ammonia Emissions
- 7. By Your Side. On Your Sidewww.thomaswestcott.co.uk THANK YOU The content of this presentation has been prepared as a guide to topics of current financial business interest. We strongly recommend you take professional advice before making decisions on matters discussed within. We can accept no responsibility for any loss to any person acting, or refraining from acting, as a result of this material.
- 8. Axminster 揃 Barnstaple 揃 Bideford 揃 Bridgwater 揃 Burnham on Sea 揃 Crediton 揃 Exeter 揃 Holsworthy 揃 Honiton 揃 Ilfracombe 揃 Okehampton 揃 Plymouth 揃 Seaton 揃 Somerton 揃 Tiverton 揃 Torquay 揃 Weston super Mare
- 9. By Your Side. On Your Sidewww.thomaswestcott.co.uk AGRICULTURAL UPDATE Look at Income in last 12 months Government figures to March 2018 published 31st October Look at trends Current Issues Farm Level Key Actions
- 10. By Your Side. On Your Sidewww.thomaswestcott.co.uk -贈5,000 贈15,000 贈35,000 贈55,000 贈75,000 贈95,000 贈115,000 贈135,000 贈155,000 贈175,000 Cereals General Cropping Dairy Lowland Grazing LFA Spec Poultry Mixed FARM BUSINESS INCOME PER FARM 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 Source: DEFRA FARM BUSINESS INCOME2017/18
- 11. By Your Side. On Your Sidewww.thomaswestcott.co.uk The content of this presentation has been prepared as a guide to topics of current financial business interest. We strongly recommend you take professional advice before making decisions on matters discussed within. We can accept no responsibility for any loss to any person acting, or refraining from acting, as a result of this material. -贈20,000 贈0 贈20,000 贈40,000 贈60,000 贈80,000 贈100,000 贈120,000 Cereals General Cropping Dairy Lowland Grazing LFA Spec Poultry Mixed BUSINESS INCOME GENERATION 2017/18 FBI BPS Diversified Agri Environment Agriculture
- 12. By Your Side. On Your Sidewww.thomaswestcott.co.uk 贈0 贈500 贈1,000 贈1,500 贈2,000 贈2,500 贈3,000 贈3,500 贈4,000 贈4,500 贈5,000 Winter wheat Field Beans Potatoes Intensive Dairy Grass Dairy Replacements / Reared Beef 22 - 24 month Breeding Sheeep (Lowland) Farm Gross Margins 2007/2008 Average 2018/19 Average Source: HSBC Forward Planning
- 13. By Your Side. On Your Sidewww.thomaswestcott.co.uk 贈0 贈1,000 贈2,000 贈3,000 贈4,000 贈5,000 Winter wheat Field Beans Potatoes Intensive Dairy Grass Dairy Replacements / Reared Beef 22 - 24 month Breeding Sheeep (Lowland) GROSS MARGIN PER HECTARE 2007/2008 Average 2018/19 Average Source: HSBC Forward Planning
- 14. By Your Side. On Your Sidewww.thomaswestcott.co.uk
- 15. By Your Side. On Your Sidewww.thomaswestcott.co.uk GOING FORWARD WHAT ARE THE ISSUES 1) Subsidies can they be relied on? 2) Commodity Markets Brexit affect / world production / population growth 3) Weather stormy less predictable how to mitigate 4) Buyers becoming more demanding 5) Public food intolerances / animal welfare / dietary demands 6) Environment major issues with farming seen as major pollution contributor
- 16. By Your Side. On Your Sidewww.thomaswestcott.co.uk INDIVIDUAL FARMS Know what they are good at and concentrate on income generators Know what costs to tackle first for biggest gain Spend time working on what environment is needed to reduce pollution risk and improve labour efficiency Work with the environment and use tillage and husbandry techniques Based on natural actions
- 17. By Your Side. On Your Sidewww.thomaswestcott.co.uk INDIVIDUAL FARMS Understand costs - Variable costs below 50% turnover - Management overheads below 30% turnover - Structural costs below 10% turnover - Want to see profit at 10%+ of turnover Invest and know time needed to see return Use Government grants wisely to improve efficiencies
- 18. Axminster 揃 Barnstaple 揃 Bideford 揃 Bridgwater 揃 Burnham on Sea 揃 Crediton 揃 Exeter 揃 Holsworthy 揃 Honiton 揃 Ilfracombe 揃 Okehampton 揃 Plymouth 揃 Seaton 揃 Somerton 揃 Tiverton 揃 Torquay 揃 Weston super Mare
- 19. By Your Side. On Your Sidewww.thomaswestcott.co.uk 29 October 2018 Structures and Buildings Allowance (SBA) Changes to Entrepreneurs Relief on shareholdings 1 January 2019 Annual Investment Allowance increase to 贈1 million for 2 years April 2019 Personal Allowance increases to 贈12,500 Higher Rate Tax threshold increases to 贈50,000 Capital Allowances special rate reduces from 8% to 6% Entrepreneurs Relief qualifying period increases from 1 year to 2 years April 2020 IR35 reform Employment Allowance restricted to employers with employers NI below 贈100,000 Lettings Relief only available if shared occupation Private Residence final period exemption reduced from 18 months to 9 months Corporation Tax reduces from 19% to 17% BUDGET
- 20. By Your Side. On Your Sidewww.thomaswestcott.co.uk Structures and Buildings Allowance (SBA) 2% annual allowance on cost of qualifying structures or buildings Not available for contracts before 29 October 2018 New commercial structures and buildings, including conversions and renovations Limited to costs of construction (land costs, planning costs not eligible) Can only claim when brought into use No AIA Dwelling houses will not qualify BUDGET
- 21. By Your Side. On Your Sidewww.thomaswestcott.co.uk Entrepreneurs Relief Available when selling a business as a sole trader or a partner and you have owned the business for the qualifying period Available on shares in a personal company where the company has traded and you have held at least 5% of share capital and voting rights for the qualifying period From 29/10/18 shareholders must be entitled to at least 5% of distributable profits and net assets of the company From April 2019 qualifying period increased to 2 years Problem with alphabet shares? BUDGET
- 22. By Your Side. On Your Sidewww.thomaswestcott.co.uk Capital Allowances 1 January 2019 AIA increases from 贈200k to 贈1 million April 2019 special writing down rate reduces from 8% to 6% BUDGET
- 23. By Your Side. On Your Sidewww.thomaswestcott.co.uk Annual Investment Allowance 31 March 2019 year end Maximum for year (200*9/12 + 1000*3/12) 贈400,000 Maximum in 9m to 31/12/19 贈200,000 Maximum in 3m to 31/3/19 贈400,000 BUDGET
- 24. By Your Side. On Your Sidewww.thomaswestcott.co.uk Annual Investment Allowance 31 March 2021 year end Maximum for year (1000*9/12 + 200*3/12) 贈800,000 Maximum in 9m to 31/12/20 贈800,000 Maximum in 3m to 31/3/21 贈50,000 BUDGET
- 25. By Your Side. On Your Sidewww.thomaswestcott.co.uk Capital Allowances Integral features & long life assets 8% becoming 6% from April 2019 Plant and machinery 18% per annum BUDGET
- 26. By Your Side. On Your Sidewww.thomaswestcott.co.uk Capital Allowances Integral Features Electrical system including a lighting system Cold water system Space or water heating system, powered system of ventilation, air cooling or purification Lift, escalator or moving walkway External solar shading BUDGET
- 27. By Your Side. On Your Sidewww.thomaswestcott.co.uk Capital Allowances Plant & Machinery Slurry storage systems Silage clamps Rainwater harvesting and filtration equipment Gutters and associated piping for carrying rain water harvested for business uses Silos for temporary storage BUDGET
- 28. By Your Side. On Your Sidewww.thomaswestcott.co.uk Capital Allowances Plant & Machinery Concrete pad surrounded by low-level barriers for temporary storage of manure Storage tanks Milking parlour, drainage, equipment and cleaning systems Moveable pens, crates, pig tents or pig arks Feed systems (whether or not automated) Slatted flooring areas (as internal parts of a slurry system) BUDGET
- 29. By Your Side. On Your Sidewww.thomaswestcott.co.uk Employment Allowance Claimed by all employers to reduce National Insurance bill by up to 贈3000 From April 2020 only available to employers with a National Insurance bill below 贈100,000 BUDGET
- 30. By Your Side. On Your Sidewww.thomaswestcott.co.uk Lettings Relief and Principle Residence Relief Currently the last 18 months of ownership of your own home are exempt from Capital Gains Tax irrespective of how it is used There has been further relief of up to 贈40,000 (贈80,000 for a couple) to cover gains where your own home has been rented out From April 2020 the final exempt period reduces to 9 months and Lettings Relief will only be available where there is shared occupation by the owner and tenant BUDGET
- 31. By Your Side. On Your Sidewww.thomaswestcott.co.uk Lettings Relief and Principle Residence Relief House bought 2000 for 贈150,000 Sold 2020 for 贈300,000 Rented from 2005 2010 Empty for last 18m before sale Gain 贈150,000 Gain relating to rental period (5/20*150k) 37,500 Gain relating to last 18m (1.5/20*150k) 11,250 BUDGET
- 32. By Your Side. On Your Sidewww.thomaswestcott.co.uk What hasnt changed VAT threshold stays at 贈85,000 Rent a Room relief remains Class 2 National Insurance unchanged Savings 0% rate remains at 贈5,000 Pension relief unchanged Agricultural and Business Property Reliefs unchanged Making Tax Digital BUDGET
- 33. By Your Side. On Your Sidewww.thomaswestcott.co.uk
- 34. By Your Side. On Your Sidewww.thomaswestcott.co.uk THANK YOU The content of this presentation has been prepared as a guide to topics of current financial business interest. We strongly recommend you take professional advice before making decisions on matters discussed within. We can accept no responsibility for any loss to any person acting, or refraining from acting, as a result of this material.