The past few months have seen our agricultural clients growing combinable crops coming to terms with a downward trend in price. Some have been fortunate to lock into high values available earlier in the year, but not all.
The most worrying aspect for arable farmers has been the dramatic increase in costs of oil-based products, be that the cost of fuel itself or the costs of fertilisers and sprays. Fertiliser products have more than doubled in price within a 12 month period. Some farmers have tried to secure an acceptable price for 2009 fertiliser by buying early, but with the consequential adverse affect on cash flow as, in many cases, the 2008 harvest hadn’t even started.
As ever cash flow management continues to be a crucial aspect of modern farming!
Most livestock farmers have seen an upward trend in price for their end product, which for the pig industry in particular, came at a crucial time to prevent a severe downscaling of the British pig herd.
The opportunity to submit retrospective claims to HMRC for under recovered or over paid VAT will run out on 31 March 2009. Charitable organisations, who are VAT registered, are well placed to benefit from this opportunity if they are not fully taxable.
It should be remembered that, being a relatively new tax and under EU governance, VAT is constantly evolving. As a result, circumstances may have changed over the years and this does not preclude retrospective claims.
Our team of VAT specialists are providing a ‘contingent-fee’ review service to clients – no claim, no fee. To book your review contact Stewart Henry
The Charity Commission has recently updated their guidance ‘The Hallmarks of an Effective Charity’ (CC10) which is very useful for benchmarking your current governance.
They have also issued some useful guidance on handling disputes with a charity called ‘Conflict in your charity – a statement of approach by the Charity Commission.’ http://www.charitycommission.gov.uk/investigations/conapp.asp
As the property market has taken a downturn, a number of developers have been faced with difficult decisions to make regarding their business activities. This could have an adverse impact on their VAT accounting. For example, a residential property developer constructs houses or apartments with a view to making either freehold or long leasehold sales, thus crystallising a taxable supply for VAT purposes. However, as prices have fallen the developer may not be able to sell the properties for the price desired, if at all. In these circumstances the developer’s original intention, of making a taxable supply, can change. The developer may decide to retain the dwellings and enter into a series of short term lettings which are exempt for VAT purposes. This could result in previously reclaimed VAT having to be repaid and restrictions in respect of future input tax recoveries.
Early details of new clinical DESs in England, still under discussion between GP negotiators and health department officials, have been revealed by GPC chairman Dr Laurence Buckman.
Under a £50m programme, which started in October 2008, GPs can provide further enhanced services across five areas. They will be paid to:
- Identify and treat women with osteoporosis and a history of fragility fracture.
- Provide enhanced treatment of heart failure using beta blocker drugs to help patients with left ventricular dysfunction.
- Cover annual health checks and medication reviews on patients with severe learning difficulties.
- Cater for newly-registered patients aged 16 and above who are identified as having a drinking problem.
- Undertake more comprehensive ethnicity recording of patients over a two year period.
The GPC said it would be preparing guidance for GPs following current talks. An SFE update will be published to give the detail.
“Keep your business fit”
This year’s wet and depressing summer has been accompanied by a sharp decline in the economy.
Technology businesses need to be prepared to ride out the storm and, in particular must practise the old adage “Cash is King”.
Simple business procedures such as timely invoicing, collecting sales invoices and prudent control of overheads will go a long way to ensuring that technology businesses make the most of the current economic conditions.
Way before the ‘credit-crunch’ hit, the transport sector was already experiencing challenging times – fuel costs, health and safety issues and changes to tax treatment to name just a few of the issues.
Now with the effects of the ‘credit-crunch’ biting – it is more important than ever to have robust systems, good controls and regular and timely management accounts. Potential problems can be identified quickly and resolved without them taking up too much time or causing long-lasting damage.
Know what your costs are, where savings can be made (perhaps through outsourcing or integration), which areas of the business are profitable (and which aren’t) and seek advice from professionals if you begin to have problems. They can be resolved.
