• EQ Agriculture

    EQ Agriculture is recognised as one of the leading providers of accountancy, taxation and business advisory services in the Scottish rural sector.

Tax Planning

Farming businesses, like all other businesses, require annual accounts and tax returns to be prepared. On the face of it, this would appear to be a straightforward task that any accountant can undertake.

In reality, farming businesses present unique issues when preparing accounts and tax returns, and the treatment of these issues can have a significant impact on the tax liabilities that result from their preparation. Our expertise can help make tax savings when it comes to considering:

  • Farmhouse expenses
  • Revenue vs capital expenditure
  • Stock & valuation
  • Basic Payment Scheme & Grant recognition
  • Capital allowance claims

The structure of a business, and the way in which the owners/participants are remunerated can alter the overall tax payable significantly. We encourage our clients to regularly consider whether their existing business structure is appropriate for their current and future plans.

“Asset rich, and cash poor” is how many people operating in the rural economy would describe themselves. Planning to mitigate capital gains tax on asset sales and transfers, and to mitigate inheritance tax on death, is essential to prevent large tax bills from interfering with plans for the future. Those involved in farming enjoy the benefits of specific reliefs against capital taxes, and we ensure that our clients’ affairs are organised in such a way as to take full advantage.

Our specialist agricultural knowledge, hand in hand with our taxation expertise, enables us to offer the best advice to our clients in this sector.

Budgetary and Financial Control

Forward budgeting and cashflow monitoring is central to modern farm business management and to maintaining or achieving stability. We can assist in this area by:

  • preparing a detailed budget and cashflow plan at the start of the financial year
  • liaising with your bank over borrowing requirements
  • reviewing your budgets versus actual cashflow variances periodically throughout the year
  • using the budgeting and monitoring process as a focus for forward-thinking management advice and pre-year end tax planning

Growth and Diversification

Our advisers regularly provide advice to clients who are considering some form of reorganisation, expansion or diversification to their farm business operations. We always find that our clients are glad to have taken our early advice, as proposed changes often have implications, practical or taxation, which they had not always, at first, considered.  EQ Agriculture can provide advice on the following:

  • viability of acquisitions
  • contract farming tenders/agreements
  • capital expenditure investment appraisals
  • enterprise analysis
  • cost v benefit and SWOT analysis

Farm Business Appraisals

A business appraisal that is tailored to your specific needs and objectives will provide you with an analysis of current systems and help you to identify key areas for change. Typically, an appraisal will include:

  • a detailed review of business resources and historic accounting data, identifying strengths and weaknesses
  • the preparation of a present system budget to accurately establish current trading performance
  • an analysis of alternative business strategies through “what if” scenarios
  • recommendations on future business direction

An appraisal offers an opportunity for you to take a fresh look at your business, have it appraised, and consider alternative options, with the help of an accredited farm business adviser. EQ Agriculture’s adviser will develop an action plan to improve your business performance, and make the most of the resources available to you – business, environmental, and skills.

Landed Estates

We act for many Scottish landed estates and enjoy working with those clients to address the range of issues involved in owning and managing an estate over generations.

Tax planning advice and strategic thinking underpin our involvement and we provide a personal service to estate owning families to ensure that we know and understand their business and their aims and aspirations for the future. Meeting our clients regularly and working closely with other professional advisors such as land agents and solicitors ensures a cohesive, comprehensive approach to the advice given.

Renewable Energy

We have clients involved in wind, hydro, solar, anaerobic digestion and biomass projects, and understand the key issues pertaining to each. We also work with manufacturers of green products and those looking at innovative new technologies.

Creating the appropriate structure through which to develop or operate a renewable energy project is critical, and there are practical and taxation issues to consider when doing so. Each situation should be assessed on the circumstances of those involved, the risks, the capital requirements, and the likely income streams. The wrong structure may give rise to significant unnecessary capital tax liabilities. Professional advice at an early stage is essential to avoid the pitfalls.

Our team is well placed to advise clients and prospects on all of the above issues.

  • I deal with Mark Wilken and Scott Greig from EQ’s Cupar office. Both are specialists in the agricultural sector and take a genuine interest in the success of my business and family’s wider financial objectives. They understand farming and I very much value their advice.

    Frank W Niven
    Frank Niven Farms

  • I started to deal with EQ following their merger with Carters in 2015. To date I have been very impressed by the service provided by EQ. They combine an in depth knowledge of the agricultural sector with proactive tax planning. I have found their input to be extremely useful in relation to managing my finances and helping me realise my financial objectives.

    Alastair Peddie
    Messrs A B Peddie

  • I've been impressed with EQ's specialist agriculture and tax knowledge, which are relevant to my businesses. Their people are easy to communicate with and explain everything clearly. The diverse nature of my business activities means that various unconnected issues need to be considered, but EQ are able to see the whole picture and advise accordingly.

    Duncan Hunter
    D & I Hunter, Hunter Holiday Cottages, Kintyre Country Homes Ltd

  • Since joining EQ Accountants back in 2007, as a farming business we have built up a great relationship with EQ. We value their advice and support and have found them to be very approachable, have in depth knowledge of the agricultural industry, trustworthy and reliable, something which we value very highly. Over the last 9 years their knowledge and experience has helped us diversify into a haulage company and a variety of wind renewable projects. We look forward to building our business to the next level with their help in the years to come.

    The Allan Family
    Melrose Farms

  • EQ were recommended to us a number of years ago and we certainly have no regrets moving to them. Work is carried out efficiently, professionally and to a very high standard. We are happy in the knowledge that EQ will always do their best to look after our business and drive it forward. Anyone in the farming industry looking for excellent customer service should look no further.

    J & I Wilson
    Carskerdo Farm

Latest News

View all latest news
Sep 14 2017 Agriculture

Farm finance health check

It is now over a year since the Bank of England cut the bank lending base rate to just 0.25% in the wake of the EU referendum result. We are now seeing reduced finance costs on many of the accounts we... more

Aug 31 2017 Agriculture

Tax free gains on sale of land?

We often have clients who sell off small pockets of land, with the land normally being acquired by someone wishing to expand their garden or improve access to their property for example. We often have... more