Farmers’ averaging calculation
Date: 21st July, 2015 | Author: Cathy Corns | Comments: 0
In the recent Budget, the Government announced that it would extend the period for which self-employed farmers can average profits for income tax purposes from 2 to 5 years.
The averaging facility helps farmers by allowing them to spread profits over consecutive years to offset the effects of volatility on profits. Increasing the period for averaging profits from 2 to 5 years will provide additional assistance.
Broadly, where an averaging claim I made from 2016/17, the averaging period will be the year of claim and the previous 4 tax years. So, for example, an averaging claim for tax year 2016-17 would result in the profits of tax years 2012/13 to 2016/17 being calculated by reference to averaging.
HMRC has issued a consultation to explore ways in which the extension to a 5-year averaging period could be designed and implemented and is seeking views on the options presented.
Full details are available at www.gov.uk
Contact Business Service Partners
Choose from the drop down menu below to select a Partner to contact.
You are welcome twitter.com/sglenholme/sta…
For the latest Mercer & Hole news, visit our LinkedIn page mercer-&-hole