Transcription of FARMERS FIRST
1 Issue 37 Autumn 2015 FARMERSFIRST Continued on page 5 TREWITHEN FARMERS AND FRAM FARMERS JOIN FORCESThe advantages of Fram FARMERS membership are now more accessible to FARMERS in the South West following the formation of the Tamar Group, a new group of farmer members covering Cornwall and need to purchase dairy farming inputs more cost-effectively was the catalyst for the formation of the Tamar Group. It deals exclusively with Fram FARMERS , which operates along similar lines to Severnside Agriculture, a group of dairy FARMERS in the Gloucestershire for FARMERS in Cornwall and Devon, Tamar Group already has 15 Members, the majority of whom are dairy FARMERS and collectively account for 3000 cows plus followers.
2 However, this is just the start and as word has spread they have been joined by arable producers, including one large potato catalyst for the Tamar Group was a meeting of the Trewithen Dairy Producers Group, comprising 23 dairy FARMERS who supply Cornwall s third-largest direct milk buyer and largest bottler of milk. Based at Lostwithiel, Trewithen Dairy collects 100,000 litres of milk daily from dairy farms within a 25-mile radius and processes it into fresh milk, creams and cultured products for national, local and ingredient customers. The Tamar Group was formed to save our members money and time, explains its Chairman Martin Whell, who runs 275 autumn-calving crossbreds on 100 acres at Lower Greadow Farm, Luxulyan near St Austell and 360 spring-calving crossbreds at Leyonne Farm, Golant.
3 Six years ago when he purchased the further 250 acres at Leyonne the business ended its long-standing contract with Dairy Crest and signed both units with Trewithen Whell, Chairman, The Tamar GroupOne major piece of good news was the change in the level of Annual Investment Allowance for providing full write-off against profits for investment in plant and machinery. It will be set at 200,000 from January next year. This is actually a reduction from the current level of 500,000 and is a significant boost to the 25,000 that had been aired , and this is surprising, we are told that the change will be permanent. A quote from the Greek philosopher Heraclitus springs to mind.
4 He suggested that nothing is permanent except change . Well, FARMERS will welcome the assurance that, at least for the duration of the current parliament, they can invest up to 200,000 a year in plant and machinery and obtain a full deduction in taxable profits. Other crumbs for the farming community to fall from the Chancellor s table included an increase from 2,000 to 3,000 in the annual Employment Allowance from next April. This comes via a reduction in Employer Class 1 National Insurance Contributions. Most agricultural businesses will benefit from this reduction in payroll costs although there are restrictions where there are related who run their businesses through limited companies will be affected by a number of significant changes.
5 On the plus side, the rate of Corporation Tax will reduce from April 2017 to 19% from the current 20%. A further reduction to 18% will apply from April 2020. Profits withdrawn in dividends will change in the way they are taxed from April 2016. A withdrawal of the tax credit attached to dividends, is hailed by the Chancellor as a simplification . A nil rate tax band for dividends of up to 5,000 per year will mean that those receiving modest dividend incomes will be better off. However, those FARMERS taking, significant amounts in dividends, will be worse off because increased tax rates will apply. Obviously there will be an impact on the tax bill.
6 I believe that professional advice is necessary because the impact on individual taxpayers will vary and will need some government has long been trying to level the tax playing field for those operating through Limited Companies compared to Sole Traders and Partnerships so perhaps the changes should not be a expected change to Inheritance Tax through the introduction of the Family Home Allowance of 350,000 from April 2020 - was a headline grabber for Chancellor Osborne. It enabled him to declare that, in most cases, the family home will be taken out of inheritance tax with couples being able to pass on 1m tax free to their families.
7 I caution FARMERS not to get too excited. The family home allowance will be withdrawn for estates worth more than 2m. Crucially this limit applies to the value of the estate before agricultural, business property and other reliefs. With land values at their current levels only family farms of a very modest size are likely to Andrew WinearlsChancellor Osborne s post-election budget, his second this year, contained the expected and predicted changes plus, as ever, the odd surprise. There are always winners and losers and this budget was no exception. It embraced much food-for-thought for FARMERS and their advisers as they plan their tax affairs for the years WINNERS AND LOSERSF ounded over 80 years ago, Whiting & Partners now have eight offices across East Anglia with 15 partners and 130 staff.
8 An independent firm, we offer traditional accountancy practice alongside many specialist and niche services. For more information call 01284 752313 Andrew Winearls Whiting & Partners Farming Group T: 01284 752313 E: Greenwood House, Greenwood Court Skyliner Way, Bury St. Edmunds IP32 7 GYRegistered to carry on audit work and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and AdvertorialIn this issue I want to highlight the Plunkett Foundation, of which I recently became a Trustee. Sir Horace Plunkett was extraordinary. Born in 1854, the son of an Irish peer, he graduated from Oxford and spent 10 years cattle-ranching in America s Rocky Mountains.
9 Returning to Ireland, he established a co-operative butter-making industry in southwest Ireland and FARMERS soon appreciated the benefits of controlling the production and marketing of their staple commodity. In 1894 Plunkett founded the Irish Agricultural Organisation Society with 33 affiliated dairy co-operative societies or creameries - four years later there were 947! Today, the Foundation is best known for helping rural communities set up and run community-owned co-operatives, including shops, pubs, food and woodland enterprises. It also makes it easier for rural communities to set up co-operatives through support and funding initiatives, as well as working to influence government policy.
10 Essentially, it is a one-stop shop which helps predominantly local communities to get up and running with co-operation. Encouraging local food production is an aspect of the Foundation s work that will resonate with Fram FARMERS Members, not only on a business level in terms of Fram FARMERS , Station Road, Framlingham, Woodbridge, Suffolk IP13 9EE Tel 01728 727700 Every precaution has been taken to ensure that the material published in FARMERS FIRST is accurate at the time of printing. For further details about any of the information featured in this edition please call Ashley Gilman at Fram FARMERS on 01728 727700, or Julian Cooksley at Kendalls PR on 01394 opportunities but because farms are at the heart of local communities and appreciate the value of vibrant local infrastructures.
