Tax man eyes up farm B&Bs
HMRC could be checking the 'separateness' of farms and B&Bs
HM Revenue & Customs are cracking down on farmers that account for their
Bed & Breakfast arms separately to their farms.
Farmers’ books are being looked at by the tax-man and whether or not the
accounting should be consolidated to show one company rather than two separate
ones,
the
Western Telegraph reported.
Joining the B&B and farm would mean the turnovers would more than likely
top the £67,000 threshold, incurring a VAT charge.
It is also thought that the HMRC may pursue VAT from previous years from the
farmers, which critics believe is ‘heavy-handed’ given the state of the economic
climate.