Accountants for Farmers
Accountancy Made Simple from only £89/month
Profits that swing with the weather, support payments being phased out, and inheritance tax reliefs that no longer cover the whole farm. Caroola gives farmers a dedicated accountant who understands how agricultural businesses are taxed, on a fixed monthly fee.
We understand that in farming, a good year and a bad one can differ by more than the profit itself, and where the tax system offers a specific remedy for it.
Specialist Accounting Support for Farmers
Our agricultural accounting services are provided by accountants who understand farm businesses, not a generic small business template.
You’ll get your own dedicated accountant, not a shared inbox or a rotating support team.
Support is unlimited, and quarterly check-ins mean your accountant is looking at your numbers throughout the year, not once, twelve months after the fact.
- Cloud accounting software included
- Annual accounts, prepared and filed
- Self Assessment, Partnership, or Corporation Tax
- Advice on averaging profits across volatile years
- Guidance on capital allowances for machinery and equipment
- VAT registration and returns
- Tax planning reviewed every quarter
- Support switching from another provider
Who are these services for?
At Caroola, we work with farm businesses of every structure, sole traders, partnerships, LLPs and limited companies, whatever you produce.
That covers arable and livestock farms, dairy, mixed and tenant farms, contract and share farming arrangements, smallholdings and market gardens, and farms that have diversified into lettings, retail or events. Whether the farm has been in the family for generations or you’ve just taken it on, we can help.
What Makes Agricultural Accounting Different?
Farm profits move for reasons no other business would accept. A wet spring, a disease outbreak or a swing in commodity prices can turn a strong year into a loss, and the tax system taxes each year on its own unless you use the relief built specifically for the problem. Meanwhile, the value tied up in the land bears almost no relationship to what the farm actually earns, which is where the inheritance tax question comes in.
Almost everything that makes farming distinctive as a business also makes it distinctive as a tax problem.
Profit averaging:
Farmers can average profits across two or five consecutive tax years, which is broader than the relief available to any other trade and can pull you out of a higher band after a strong year.
Inheritance tax relief:
Agricultural and business property relief now give 100% relief only up to a capped amount of combined qualifying property, with 50% relief above it, so the reliefs no longer cover an entire farm as a matter of course.
Diversification:
Farm shops, holiday lets, weddings and energy generation change the tax profile of the business, and can affect whether assets still qualify for those reliefs.
The herd basis:
An election lets you treat a production herd as a capital asset rather than trading stock, which changes how animals are valued and how a sale is taxed, but it has to be made in time.
VAT:
Most agricultural output is zero rated while most inputs carry VAT, which usually puts a farm in a repayment position rather than a paying one.
Why Choose Caroola for Agricultural Accounting?
Built for Volatile Income
Advice that plans across years rather than reacting to one of them.agreement requires.
Fixed Monthly Fees
One price, agreed upfront, that won't creep up after a good harvest.
Your Own Accountant
Work with one dedicated accountant who understands farm businesses, not just trading companies.
No Hidden Costs
Clear pricing throughout.
Grows With The Business
From a smallholding to a diversified estate, your package adapts.
How Much Does an Agricultural Accountant Cost?
Your core accounting is one fixed fee, whatever you farm.
Packages start at £28 + VAT a month for sole traders and £89 + VAT a month for limited companies, with partnerships and LLPs priced around your setup.
Payroll for employees, bookkeeping, or management accounts are priced separately or included with an upgraded package, and always agreed with you first.
Sole Trader
- Self Assessment filing
- Bookkeeping software
- Dedicated accountant
- MTD ITSA software
- Corporation Tax & VAT filing
- Annual Accounts
- Real-time tax insights
Limited Company
- Self Assessment filing
- Bookkeeping software
- Dedicated accountant
- MTD software
- Corporation Tax & VAT filing
- Annual Accounts
- Real-time tax insights
Partnerships & LLP
- Self Assessment filing
- Bookkeeping software
- Dedicated accountant
- MTD ITSA software
- Corporation Tax & VAT filing
- Annual Accounts
- Real-time tax insights
Speak to an Agricultural Accountant Today
Ready to work together or interested in learning more? Get in touch with the team to start a conversation.
FAQs
- What Is Farmers' Averaging and Should I Use It?
It lets you average your profits across either two or five consecutive tax years, so a very good year immediately after a poor one doesn’t get taxed as though it happened in isolation. There’s a volatility test to meet, and the five-year version is only available to farmers and market gardeners rather than businesses generally. It won’t help every year, and choosing between the two-year and five-year claim needs the actual figures. We check it as a matter of course rather than waiting to be asked.
- How Much of the Farm Can I Pass On Free of Inheritance Tax?
Agricultural and business property relief still exist, but full relief is now capped. Combined qualifying agricultural and business property gets 100% relief up to an allowance, and 50% relief above it, which produces an effective rate of 20% on the excess. The allowance is transferable between spouses and civil partners, and the tax on qualifying property can be paid in interest-free instalments over ten years. Because the value of farmland rarely reflects what the farm earns, this is worth modelling against your actual figures rather than assuming you’re either safe or caught.
- Will Diversifying Affect My Inheritance Tax Position?
It can. Agricultural property relief attaches to land used for agriculture, so a converted barn let as holiday accommodation or run as a wedding venue is doing something else. Business property relief may still apply, but it depends on whether the business as a whole remains mainly trading rather than mainly holding investments. Diversification is often the right commercial decision, and it’s worth understanding the tax consequence before rather than after.
- What Is the Herd Basis?
An election that treats a production herd as a capital asset instead of trading stock. It means the cost of maintaining the herd is deductible while the herd itself sits outside your trading profit, and a sale of the whole herd can fall outside income tax. It suits some businesses considerably better than others, and there are time limits on making the election, so it’s worth deciding early rather than discovering it later.
- Should My Farm Be VAT Registered?
Usually yes, and often voluntarily even below the threshold. Most agricultural produce is zero rated while machinery, fuel, feed and contractor costs carry VAT, so registration typically means reclaiming more than you pay. There’s also a flat rate scheme designed specifically for agriculture that suits some smaller businesses better. We’ll look at your figures and advise.
- Can I Switch to Caroola Part-Way Through the Year?
Yes. No need to wait for year end. We manage the handover with your current provider.
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