COVID-19: Practical guidance for our rural and farming clients #27
In this week’s rural update:
- Annual Investment Allowance (AIA) £1 million temporary tax relief cap extended until 1 January 2022
- Local Restrictions Support Grant (LRSG) and Additional Restrictions Grant (ARG)
- Government provide list of actions for Brexit transition for your business and family
- Companies House urges companies to register for email as postal reminders stop
- Xero accounting software – so how can it help my farm?
- Book your place on our Later Life Webinar – Tuesday 24 November (10.30am)
If you have any questions about any of the below please do get in touch with your adviser in the first instance, or alternatively click here…
18th November 2020
Andrew Vickery See profile
Businesses, including farmers and those in the agricultural sector, are currently able to claim up to £1 million in same-year tax relief through the Annual Investment Allowance (AIA) for capital investments in plant and machinery assets. This benefit was due to revert to a maximum of £200,000 on 1 January 2021.
In a move intended to boost confidence as companies look to weather the pandemic and plan for the future, on 12 November the government announced they will instead be extending this relief until 31 December 2021.
This will be a welcome extension particularly for our farming clients who need to hold off on significant investment decisions due to the market uncertainty caused by COVID-19.
With more time to plan for significant capital investments, a review of next year’s financial strategy may be the best course of action for many clients. If you are considering your capital investment plans then please speak to an Old Mill adviser to talk through the options and the best way to structure tax and the associated reliefs.
The LRSG was brought into effect to support businesses that have been required by law to close for 28 days due to the national lockdown restrictions. Eligible businesses receive a single grant worth up to £3,000 to cover the closure over the month. Grants are based on the rateable value of the business property on the first full day of the national lockdown restrictions. Check your eligibility here.
The ARG will be available for non-business rate payers that have been required legally to close for the 28 days or have been severely impacted by the lockdown period but don’t necessarily have to close. The grant level will be determined by the local council as best fits their area. Check your eligibility here.
The responsibility of these two support grants has been given to local authorities. It looks like each council is at a different stage in promoting and administering these grants so visit their website to find the most up to date information.
You can find which council is relevant to you here.
There is less than 40 days to go before Britain fully exits Europe. As such, new rules are coming into force as of 1 January 2021 which will affect UK citizens. In preparation for this, the government has constructed an online help page which businesses and individuals can start preparing for the transition.
By completing their transition questionnaire, you will be provided with a breakdown of which new rules and regulations individually affect your business and family and receive a personalised list of actions.
Companies House is no longer sending paper reminders by post. We advise that all companies sign up to its email reminder service for annual accounts and confirmation statement reminders.
Companies can choose up to four people to receive a reminder, including their accountant.
Xero – so how can it help my farm?
Making Tax Digital (MTD) led to many businesses using software in order to be compliant with legislation but for farming businesses Xero can be much more than a bookkeeping tool.
If you would like to speak more about the transition to online accounting and Xero then speak to your adviser or Wayne Bastian, an adviser in the Old Mill Digital Team.
Do you have elderly parents? Have you talked to them about what would happen if you need to step in and manage their financial affairs?
Book your place on our Later Life webinar on Tuesday 24 November at 10.30am with our three Society of Later Life accredited advisers, Andrew Page, Carolyn Matravers & Chris Tweedie as they explain our GETSET six-step process that details the main six things you need to do and action with your parents. It’s easy to follow and will give you and your parents clarity and peace of mind. Just click below to book your place.