Agricultural Tax Credit Recruitment

The last decade has brought the UK agricultural industry a series of impossible challenges to navigate – the impact of Brexit, the Covid pandemic, and the cost of living crisis. British farmers are feeling the pinch with growing calls for more sustainable agricultural practices and the impact of climate change further deepening the agricultural crisis. The industry requires innovation and a fresh approach to survive the next decade.

Farmers have their eyes on ever-reducing profit margins, searching for new years to maximise efficiency and increase yields to make the industry more profitable. Technology and so-called ‘smart farming’ offer a vital lifeline for British farming as the domestic agricultural industry attempts to fight back.

The government is encouraging farmers to explore and invest in new technology through tax relief benefits, known as R&D tax credits. These tax incentives can make a real difference to the balance sheets of farmers, providing them with a path forward to revitalise the agricultural industry.

At FD Capital, we recruit experts in agricultural tax credits, enabling your agriculture company or farm to take advantage of these policies. FD Capital is a boutique recruitment agency that has a reputation for connecting financial professionals with companies throughout the UK and beyond.

Recruit an expert in agricultural tax credit by contacting our team at 020 3287 9501 or recruitment@fdcapital.co.uk.

Agricultural Tax Credit

Agricultural R&D tax credit is designed to promote research and development within the industry. It offers tax relief for farmers who are utilising and developing technology to create more efficient operating systems. The UK’s research and development tax credit is available across multiple industries, including manufacturing and agriculture.

The R&D tax credit system exists to reward companies who are utilising technology to improve their own organisation and the industry at large. This tax relief is a win-win, offering companies a reward for utilising technology with the industry pushing boundaries and evolving.

Tax relief can be claimed on research and development schemes, regardless of whether the project is a success or not. The government is promoting agricultural tax credit in a bid to evolve the industry and help it move forward post-Brexit with greater technological involvement.

What Qualifies for Farming R&D Tax Relief?

A tax credit expert is ideally placed to help you determine what potential projects you can utilise to benefit from research and development tax relief. Our team of financial experts are on hand to oversee these projects and advise on how to apply for these tax credits.

Research and development tax relief applies to any project that:

• Utilising existing technology in a new, innovative way.
• Investigate or explore aspects surrounding an area of unknown scientific or technological research that benefits the industry at large.
• Advances technological use and development.

The project must meet four requirements to qualify for R&D tax credits:

• Improve standards.
• Improve production, scalability, and/or yields.
• Improve processes or operations.
• Generate and/or utilise new software or technology.

The cost of improving daily operations in line with the above points can also be claimed as part of the R&D tax credit. These costs include:

• Project-specific purchases
• Staffing cost
• Subcontractors and externally provided work (ESP)
• Power and utilities, including light, heat, and water.

How Much Agricultural Tax Relief Can a Farm Get?

The amount of agricultural tax relief being claimed by farmers is increasing annually with more farmers steadily applying for research and development credit. UK farmers who claimed R&D tax credits during the financial year 2020/21 received an average of £55,000 in corporate tax reductions or cash credits. It’s not just large-scale farms and agricultural entities that can receive significant financial support. Small family-owned farms in the same financial year were able to benefit from tax credits of around £42,000.

Most farms have been able to claim up to a third of the qualifying spend with other farms able to claim back in excess of £250,000 through R&D tax credits.

Why Agricultural Farms Don’t Claim Tax Benefits

Farmers can claim back over £50,000 through R&D tax credits, so why isn’t the industry taking advantage of it? Although there are significant financial gains to be made, agricultural businesses account for just 1% of all R&D tax claims. By comparison, the manufacturing industry accounts for 22% of R&D tax credit claims.

Agricultural farms are not claiming tax benefits because they simply are not aware of them. Many are often unaware of the fact that failed projects are still covered by the R&D tax credit scheme, minimising the risk involved. Working with an R&D tax credit expert can help you understand how your company can best benefit and utilise this scheme for the maximum return.

Why Your Company Should Claim R&D Benefits

The government is actively encouraging more British farmers to utilise R&D tax credits to regenerate the industry and support domestic agriculture. Most companies choose to work with an external R&D tax specialist, who will oversee the R&D claim. At FD Capital, our talent pool of part-time and interim financial executives is ideally suited to navigating this process.

Your R&D tax specialist will remove the administrative workload involved with the application process and work on your behalf to complete and submit these documents to HMRC. It allows your employees to focus on the day-to-day operations of your business and reduces the potential for errors or incorrect filing. Evidence and data gathering are vital as the more supporting information you provide supports your overall application.

A part-time or interim tax specialist can advise on whether any business changes need to be made to qualify for R&D tax credits. Utilising R&D tax credits can enable you to diversify your farming business and boost your profit margins while navigating the challenges that are impacting every area of the industry.

Recruiting An R&D Tax Expert

FD Capital is proud to have an undisputed reputation for striving to connect companies across every industry with leading financial executives. Explore how an R&D tax specialist can help your farm unlock thousands in tax credits by contacting our team at recruitment@fdcapital.co.uk or 020 3287 9501.