Business strategy

It is essential that farming and rural businesses make sure they have the most appropriate business structure in place to keep pace with changing economic and tax circumstances.

By working with professional advisers experienced in the agricultural sector, such as Nicholsons, to regularly review their business structure – and making changes as necessary – farmers can strengthen their operations and ensure they are not paying more tax than is necessary.

Incorporating all or part of a farming business could enable farmers to cut their tax bill from the 40 or 45 percent income tax rates for higher earners to just 20 percent on profits up to £300,000.

A limited company structure also means that its directors and shareholders are not personally liable for company debts and can help to make it easier to secure bank loans and other funding.

Furthermore, with many farms looking to diversify to generate extra revenue, for example, by setting up a bed and breakfast business, farmers need to seek professional advice on how the new venture would fit their current business model and what changes are required.

For more information on choosing the right business structure, please contact us.

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