The NFU has offered advice to farmers and growers struggling to pay significant tax bills due to be paid at the end of last month.
The NFU advises that because part of the tax due has been based on half of the 2011/12 tax liability, it may be possible to reduce it if profits dropped as a result of the 2012 harvest.
The guidelines state: “For example, if last year’s harvest reduced your profits you could estimate what your actual 2012/13 tax liability is likely to be and make a postponement application to H M Revenue & Customs to reduce the 2012/13 payment on account in line with expected profits.”
The NFU suggests any postponement application should be discussed with a tax adviser, along with other advice, such as reducing overall tax liability by reviewing averaging claims for the two years 2010/11 and 2011/12, and – where farmers have already passed the year end for 2012/13 – claiming any trading loss against income for 2011/2012. The NFU urges action as soon as possible.