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    Income tax - Trading income - Special trades - Farmers - 22085

    The profits of farmers (and market gardeners) are calculated under the normal trading rules, with additional refinement due to the unique nature of the trade. The rules are designed to take account of...

    PAYE and NIC - National Insurance contributions - Contributions for the self-employed - Class 4 contributions - Liable profits - 43865

    Contributions are generally based on taxable trading profits applying to the particular accounting period (¶21000+). However, the following items represent adjustments which may need to be made...

    Herd basis election

    Herd basis electionIf you keep animals for production purposes, you might be able to take advantage of the "herd basis" to simplify calculating your taxable profits.ProductionFarm animals are...

    Farmers' averaging election

    Farmers' averaging electionIf you carry on a farming or market gardening business, you can elect to average your profits over either two or five years.FarmingBusinesses that depend on a successful harvest...

    When is a herd basis election beneficial?

    If you have clients with production herds, e.g. farmers with dairy cattle, they can elect to use special rules that could result in big tax savings. When will this be most efficient, and what...

    When is it beneficial to average profits?

    The rules for farmers’ averaging changed in April 2016, allowing a choice between a two and five-year averaging period. How do these relaxed rules help your clients, and what should you look...

    Changes to farmers’ averaging rules

    Budget 2015 announced changes to the tax relief which allows farmers to smooth their profits over more than one taxable period. When is it beneficial to use this method and what are the changes...