Tag Archives: Farm diversification

A farm diversification project that’s a real (Gin and) tonic!

Warner Edwards Gin was meant to be a part-time project, a fill-in for the down-season in Lavender Essential Oil production. However, three years and some heavy research later, old friends

Pic Courtesy Warner Edwards Website

Pic Courtesy Warner Edwards Website

Tom Warner and Sion Edwards have a product to be proud of!

Realising  from the outset that their biggest selling point would be the provenance of their product, the pair distill and bottle the Gin at the farm premises and use Spring Water from one of the Northamptonshire farm fields.

The product has super-strong branding and has been taken up by leading food and drink retailers including Fortnum & Mason and Harvey Nichols, with the pair sticking to a plan to find the right person in the right store and to approach them directly.

There are plans for fruit flavoured Gins to come, we can’t wait to try them!

You can see a full story here on farmers Weekly Interactive. 

The Warner Edwards Website is here, and you can buy the Gin online, too – quick pass the credit card!

VAT inspectors eye farm businesses

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Diversified farm businesses are being targeted by HM Revenue & Customs for failing to charge VAT. The authorities can recover up to three years’ back tax as well as charge penalties and interest.

Problems are most common where a diversification claims to be separate from the main farming business with a turnover under £67,000 and is, therefore, not VAT registered.

“If you get it wrong the liability could very quickly outweigh any advantages from diversification. HMRC is pursuing businesses vigorously,” said Robert Hatch, partner at accountant Ensors.

“Unless a proper structure and practices are in place to show the new business is run separately, HMRC often finds that the diversification is part of the farm business, which is usually VAT-registered.” Where this is the case, VAT should be charged on all eligible goods and services, not just those of the core farming operations, he said.

“We have seen several cases where the tax assessed is £18,000-25,000. B&B and holiday cottages appear to be current targets, although shooting is another area where HMRC has been active.”

Farm contracting, hiring sporting facilities like golf courses, caravan and camping pitch fees, and open-farm admissions are other examples where VAT should be charged, Mr Hatch said.

Source FWi – read the full article here

Contact HM Revenue & Customs here