Pre-year end planning: taking control of your farm's finances
In farming, waiting until your financial year ends to review your accounts means you are simply reading history. By the time the books are closed, your options to mitigate tax liabilities, smooth out volatile income, or strategically manage your cash flow have largely vanished.
At Armstrong Watson, our approach is different. We take a proactive look at your business before the books close, giving you the time to influence the final outcome. We sit down with you two to three months before your year-end to assess exactly where you stand, allowing us to implement strategies that protect your farm’s hard-earned profits for the next generation.
Our proactive financial reviews give you the foresight needed to make informed decisions that reduce tax burdens and strengthen your farm's long-term stability.
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Get in touch with our specialist Agri team
Contact the teamStraight-talking advice from people who know farming
With an agri-team of 150 experts—many of whom come from a family farming background—we provide the no-nonsense financial advice you need to keep your business resilient. We understand the sheer graft required to run a successful holding.
When we suggest a pre-year end strategy, we don't just look at it from an accountant's perspective; we look at it from the yard. We will never advise you to buy a tractor just to save tax if the business doesn't genuinely need the equipment. We provide proactive solutions to ensure your land and your legacy remain viable for the next generation.
Frequently asked questions
The most common questions answered by our experts.
Ideally, we meet 8 to 12 weeks before your financial year-end. This provides a clear picture of your likely profits while leaving enough time to execute strategies like pension contributions, machinery purchases, or restructuring debt.
A clear, professionally prepared forecast gives lenders confidence. If we identify a cash flow "pinch point" approaching before year-end, presenting the bank with a proactive plan and a realistic forecast makes it much easier to negotiate temporary facility extensions.
Stockpiling inputs like fertiliser or feed before year-end can reduce your taxable profit, provided the expense is wholly and exclusively for the business. However, we will work with you to ensure this doesn't unnecessarily compromise your cash flow.
Yes, if timed correctly. If you are weighing up a major machinery investment, making the purchase before your year-end can allow you to claim Capital Allowances against this year's tax bill.
Farming income can be incredibly volatile. Profit averaging allows us to smooth out your taxable profits over two or five years. By reviewing performance early, we identify opportunities for tax-efficient capital expenditure and profit averaging, helping you manage cash flow and protect your farm’s hard-earned profits for the next generation.
If they are genuinely working in the business, yes. Utilising their tax-free Personal Allowance can significantly reduce the overall family tax bill. We ensure these payments are "wholly and exclusively" for the business to keep you compliant with HMRC.
Absolutely. If your pre-year end review shows a loss, we can often "carry back" that loss against profits from previous years. This can trigger a much-needed tax refund, providing a vital cash injection when the farm needs it most.
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