farmers averaging 2 yrs profit

Posted by jane PM | on Sun, 22/04/2012 - 20:53 831 3 comments | report

Hi - just want to clarify as HMRC details on farmers averaging (full relief) BIM73130 gives an example of profit reducing yet applying the averaging relief (why would it be in client interest to average in this situation).

Surely you would average only when farmer enjoying yr on yr profits?

Also as practitioners would you explain the detail to the farmer or would you just 'apply' it to the tax computation?

Farmer 'friend' has asked me whether he should incorporate - and trawling this site as I do regularly I know that this is only one of many considerations!

Many thanks

Comments

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Avoiding higher rates

David Massey | Mon, 23/04/2012 - 08:22

Reducing profits good reason to average

Jimess | Mon, 23/04/2012 - 09:24

Tax Credits

DMGbus | Mon, 23/04/2012 - 13:40