Your croft and everything else
We prepare accounts for your croft or farm and add them to the rest of your income in one Self Assessment return. If the croft is run with family, we’ll look at whether a partnership is the right set-up and how profits should be shared.
Grants and support payments
Support payments and crofting grants need to go through your books the right way. Some count as income in the year you get them; grants towards buildings or equipment are usually treated differently. We’ll make sure each one is recorded correctly, so you pay the right tax and keep the paperwork to back it up.
Smoothing out good and bad years
Farming profits can swing a lot from one year to the next. Farmers and market gardeners can choose to average their profits over two or five years, which can stop a good year pushing you into a higher tax bracket. If your croft is run as a business, we’ll check whether averaging saves you tax.
Losses
A loss on the croft can sometimes be set against your other income. There are limits if a farming business makes losses year after year, so it’s worth getting advice before you rely on it.
What’s included
- Accounts for your croft or farm
- Self Assessment tax returns covering all your income
- Grants and support payments recorded correctly
- Profit averaging where it saves tax
- VAT advice, including the agricultural flat rate scheme
- Xero set up so your records are easy to keep
Common questions
Are crofting grants taxable?
It depends on the grant. Payments towards running costs are usually taxable income, while grants towards buildings or equipment are normally treated as reducing what the asset cost you. We’ll treat each one correctly.
Can I average my farming profits?
If your croft or farm is run as a business, you can usually choose to average profits over two or five years. We’ll work out whether it saves you tax.
Is my croft a business for tax?
If you’re selling stock or produce with a view to making a profit, it usually is. If it’s more of a hobby, the tax treatment is different. We’ll look at how yours runs.