While the agricultural sector shares some characteristics with other industries, in many ways it is unique. So, when it comes to seeking advice on any aspect of your agri-business, you need to know you can trust the sector specific knowledge and experience on offer.
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At EQ , many of the team are not just accountants – they’re also involved in farming. That makes a huge difference when it comes to understanding the issues faced by farmers and agricultural businesses today. Testament to that is the fact that EQ Accountants is the leading provider of accountancy, taxation, and succession planning in the rural sector.
We spoke to Mark Smeaton, senior partner at EQ Accountants, who heads up the firm’s agriculture team, to find out more.
The first thing that strikes you when speaking to Mark is his genuine enthusiasm. Mark told us: “I come from a farming background and have been involved in the family farm all my life, and there’s quite a few others in our offices who are involved in farming in some capacity.
“It definitely helps that we understand the day-to-day issues that farmers are facing. Various sectors go through peaks and troughs, and rather than asking the uninformed questions we can pre-empt exactly what’s on our client’s mind and support them with it.”
Tax planning for no unwelcome surprises
When it comes to tax and how best to approach it, this familiarity with the agricultural sector is what makes EQ tried and tested advisors trusted by their clients.
Mark told us more: “Of course as accountants, we do all the standard types of accounts and tax work. But right now, annual tax planning, capital tax planning, succession and inheritance tax are the main areas people are coming to us for – with inheritance tax being the one that we’re dealing with most.
“We do a lot of pre-year-end tax planning, just so there are no surprise tax liabilities on the horizon for our clients. We’ll talk to each of our clients in the run up to the year end, work out what their potential exposure to tax is going to be, and speak to them about their plans for the future and if there are ways we can help them reduce their tax liability.”
Mark also explained that capital tax planning can help farmers who are perhaps looking to retire, and that succession planning is key for farmers looking to pass the farm on to the next generation.
Tackling inheritance tax questions
It’s no surprise that inheritance tax is a key issue Mark and his team are helping clients navigate.
“Inheritance tax has always been something we would talk about,” Mark told us. “However, under the old rules, when basically you could wear your wellies to grave owning the farm, there wasn’t really a need to really delve too deeply into inheritance tax.
“But obviously with the new legislation coming into play next April, we have spent a lot of time with not just farmers, but all business owners, as there’s no doubt it’s going to have a significant effect.”
Mark continued: “The issue is that there is no one size fits all. We act for a lot of family businesses and every scenario is different, whether it’s involving grandparents, parents or children, and some farms are structured differently to others.
“We sit down with clients and their families at their kitchen table and thrash out with them exactly what they want to achieve, going through the plan and smoothing any bumps on the road.”
Facing the challenges
Mark adds: “The biggest issue is for families and business owners is to take the time to really think about this. It’s not just a challenge on the finance side either, it can be challenging for people to actually talk about situations relating to when a loved one dies.”
However, Mark is keen to point out the positives that are being created from tackling the implications of the new inheritance tax rules head on.
“While many farmers will look at the negative impacts of the new IHT rules, I believe there are still positives to come from it,” explained Mark.
“It’s forcing people to sit down and have the discussion so they can plan for the future. It’s making people think about it and talk now, which is something that’s often avoided as it can be uncomfortable to do.”
“No matter where you are…we meet you on your farm”
Although Mark’s team is based in the north-east of Scotland, they have clients all over the country. He said: “While we’re based in Forfar, we cover the whole of Scotland and the North of England.
“No matter where you are we will make sure we meet you on your farm. I thoroughly enjoy meeting clients at their premises, I take great pleasure in getting shown round any farm. And I know other partners at EQ feel the same.”
What does the future hold for Scottish farming? On that, Mark is clear: “Progressive, forward-thinking farmers will always thrive in the industry no matter what is thrown at them. What the UK produce has to offer is second to none, and I absolutely believe the long-term future is bright.”
As the leading providers of accountancy, taxation, and succession planning in the rural sector, EQ Accountants are with you every step of the way.
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