HMRC has just announced an online guide for farmers at Starting in Business.
The guidance has apparently been drafted with the help of the National Farmers' Union (NFU) and on the whole is a decent and helpful guide aimed at people who are completely new to business and setting up in self-employment - although it's clearly a general guide with a bit of farmer-specific advice bolted on.
Note, however, the following:
Section 8 Forward Planning - Retirement
Although you may have just thought of starting your own business, it is never too early to plan for your retirement.
Advising us when you begin ensures you are registered for National Insurance contributions and that will entitle you to state benefits.
However to what extent these will be payable when you retire is unknown. The UK Government encourages all individuals to plan for their retirement and the earlier you start the better the final benefits.
Remember too that you can claim tax relief on any retirement provisions you make.
Whilst it might be sensible for people to plan for their retirement, there's an implication that the National Insurance contributions one makes throughout one's working life simply won't be up to the job - so what incentive to pay them? ("We're not saying they're worthless, just that they're worth less..?!)
And not all retirement provision is eligible for tax relief.
And are "advisers" not supposed to mention that the value of investments can go down as well as up, and that past performance is not an indicator of future yield..? (Well, they kind of have - at least when it comes to NICs!)
Interesting that at no point does the guide mention the possibility of setting up as a limited company. Because then some of the expenses mentioned in the guide as not being deductible might then be allowable. Furthermore, there's none of that apparently useless (or at least of doubtful utility) National Insurance to pay on dividend income. There may be many reasons why a corporate vehicle is not appropriate for some farming businesses but it should not be completely ignored.
That HMRC has made the effort to give useful advice is, on the whole, to be applauded. But that section on retirement just doesn't sit at all well in a tax guide.
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<br /> Our house has just short of an acre of land to its rear. This land was part of the overall estate but in 2009/2010 the land only was transferred into my wifes son name.<br /> <br /> We have lived at this house for several years now and it is our main residence. The house is fully paid for and the title deeds are in my wifes name.<br /> <br /> <br /> <br /> <br /> <br /> We have recently applied for outline planning permission for the said land and the council have brought up the fact that it is still in our sons name.<br /> As this is our main address ,<br /> <br /> <br /> <br /> Whose name shall we apply for planning permission in ?<br /> <br /> What are the tax and stamp duty implications for my wife and I.<br /> <br /> We are going to sell the land with planning permission and the house as one job lot.<br /> <br /> We require to know so as to save on tax,stanp duty accepting we have to pay some. This is of course done in the full knowledge of our son who is happy to go either way as long as the tax implications / stamp duty issues are dealt with.<br /> Can someone advise please as to action to take.<br /> Should we transfer land back into our name and then sell as job lot.?????<br /> <br /> <br /> <br /> <br /> <br />