20 December 2019
This year it’s been necessary for us to be inward-looking, to ensure our businesses are set up as effectively as possible in order to withstand the changes that remain unknown, but I am hopeful that 2020 will bring about a time of outward resistance.
At the time of writing, although we have the certainty of continuing into the New Year with the same government, a deal is yet to be brokered on Brexit. The lack of clear policy is the only thing that remains, and of course our community still craves reassurance.
However, there is encouragement in the form of opportunities that continue to rise. Technology, agri-tech in particular, is a growing industry and definitely one to watch. In the spring when we release our 2020-2021 Outlook publication this will be one area we delve deeper into, but are you aware of the opportunities your financial technology can provide?
This year you will have either upgraded your accounts software or perhaps even digitalised your accounts for the first time in order to be compliant with Making Tax Digital (MTD) for VAT. With a little extra effort, you can turn that digital data into a platform for making critical business decisions. Traditional year-end accounts and the subsequent meetings look to the past, whereas whilst facing the uncertainty of Brexit and a potential ‘no deal’, now is the time for monitoring and forecasting your farming business’ financial health.
Looking to the future will also allow for more productive planning when it comes to diversification, succession planning, and even exit strategies. And of course, linked to all of those is the necessary tax implications. The commercial decision-making process should not be held back by tax regulations, so ensuring you have all the essential information to hand will allow for the big picture to be kept in mind.
This preparation goes hand in hand with tax relief over-regulation. When looking to 2020 and 2021, it is important to know where you stand with regards to income, capital gains, and inheritance taxes along with VAT. For example, next year the enhanced capital allowances for energy-efficient and water-efficient technologies will end but enhanced capital allowances for electric vehicle charge points will be extended for companies until 31 March 2023.
To read more rural and agricultural blogs, click here, or catch-up with our 2019-2020 Outlook here.
If you would like to discuss your diversification plans or the tax implications for 2020, please contact me or one of our rural specialists.
