Facebook Twitter Instagram
    • FREE Email Newsletters
    • About Us
    • Advertise
    • Contact Us
    • FREE Magazine Subscriptions
    •  
    Twitter LinkedIn
    Podcast
    Poultry News
    • Production
      • Broiler Production
      • Ducks
      • Egg Production
      • Game
      • Hatching
      • Housing
      • Turkeys
    • Processing
    • Business & Politics
      • Business
      • Economics
      • EU & Politics
      • Marketing
      • People
      • Training & Education
    • Welfare
      • Environment
      • Food Safety
      • Vet & Medication
      • Welfare
    • Feed
    • Genetics
    • New Products
    • Magazines
      1. July 2022
      2. June 2022
      3. May 2022
      4. April 2022
      5. February 2022
      6. January 2022
      Featured

      Protected: Poultry Business – July 2022

      By Michael BarkerJune 28, 2022
      Recent

      Protected: Poultry Business – July 2022

      June 28, 2022

      Protected: Finalists Supplement – National Egg & Poultry Awards 2022

      June 27, 2022

      Protected: Innovation Supplement 2022

      June 1, 2022
    • Jobs
      • Browse Jobs
      • Post a Job
      • Manage Jobs
    • Events
      • National Egg and Poultry Awards
      • Poultry Fair
    Poultry News
    Business

    Farmers warned over pitfalls when trading machinery

    Colin LeyBy Colin LeyAugust 7, 20183 Mins Read
    Facebook Twitter LinkedIn Email
    Share
    Facebook Twitter LinkedIn Email

    Farmers are making the most of the buoyant second-hand trade in machinery, which is strong throughout Europe, but have been warned to be careful over VAT and legal pitfalls.

    According to West Country farm accountant Old Mill, selling surplus machinery is a good way to free up cash, but usually comes with an increased tax bill and is not without its risks, particularly when dealing with overseas buyers.

    “If you sell any equipment you will usually have to pay Income Tax or Corporation Tax on the sale price,” said Andrew Vickery (pictued above), head of rural services at Old Mill. “Many people think that they are dealing with Capital Gains Tax instead, and can therefore make use of their CGT allowance, but that simply isn’t the case.”

    The current strength of the second hand machinery market is reflected in sales concluded by Cheffins auctioneers which increased by 13% in Q2 2018 and totaled £10.07m, the firm’s highest level since 2014. The trade also featured a strong overseas element with around 80% of stock sold through the firm’s Cambridge machinery sales going to buyers from many different countries, including Ireland, Spain, Bulgaria, Poland and Belgium.

    “If you’re selling overseas to a business you do not generally need to charge VAT,” said Mr Vickery. “For EU sales, you must show the purchaser’s VAT number on your sales invoice and they pay VAT in their own country using the acquisition VAT process. You then need to log the sale on your VAT return, fill out an EC Sales List and send it in to HMRC. It is also vital that you retain a copy of the relevant freight documents for both EU or non-EU sales.”

    Since laws differ in every country, it’s also important to understand the basic legal framework of the country to which you intend to export, said Amy Kerr, senior associate at solicitor Clarke Willmott.

    “Considerations include investigating who you are dealing with, and checking they have legal capacity to sign any contract,” she said. “In some jurisdictions, there is a duty to inform potential buyers of any facts which would affect their decision to sign up to the contract.”

    Another key concern is when and how payment is to be made and in what currency.

    “Payment up front is always best, with delivery once payment has cleared,” said Ms Kerr. “Paypal is an option as this controls when payment is made.

    “In addition, if you’re receiving a cash payment of €10,000 or more, you may need to register with HMRC and carry out money laundering checks.”

    Share. Facebook Twitter LinkedIn Email
    Previous ArticleUK food security warning on ‘bare larder’ day
    Next Article Animal cruelty maximum sentences to be increased
    Colin Ley

    Read Similar Stories

    Business

    LJ Fairburn reports reduced profits

    July 4, 2022
    Business

    Jack Brand reports operating loss after ‘poor’ performance

    July 4, 2022
    Business

    Vencomatic UK is now part of the Vencomatic Group

    June 15, 2022
    Most Read

    LJ Fairburn reports reduced profits

    July 4, 2022

    Lohmann installs in-ovo sexing technology

    July 4, 2022

    Jack Brand reports operating loss after ‘poor’ performance

    July 4, 2022
    © 2022 Lewis Business Media. All Rights Reserved.
    Lewis Business Media, Suite A, Arun House, Office Village, River Way, Uckfield, TN22 1SL

    Privacy Policy | Cookie Policy | Terms & Conditions

    • AA Farmer
    • Farm Contractor
    • Pig World
    • OvertheCounter

    Type above and press Enter to search. Press Esc to cancel.

    We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “ACCEPT ALL”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
    Cookie SettingsREJECT ALLAccept All
    Manage consent

    Privacy Overview

    This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
    Necessary
    Always Enabled
    Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
    CookieDurationDescription
    AWSALBCORS7 daysThis cookie is managed by Amazon Web Services and is used for load balancing.
    cookielawinfo-checkbox-necessary1 yearSet by the GDPR Cookie Consent plugin, this cookie is used to record the user consent for the cookies in the "Necessary" category .
    PHPSESSIDsessionThis cookie is native to PHP applications. The cookie is used to store and identify a users' unique session ID for the purpose of managing user session on the website. The cookie is a session cookies and is deleted when all the browser windows are closed.
    Others
    Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
    CookieDurationDescription
    AWSALB7 daysAWSALB is a cookie generated by the Application load balancer in the Amazon Web Services. It works slightly different from AWSELB.
    explat_test_aa_weekly_lohp_2021_week_4517 days 8 hoursNo description
    ppwp_wp_session30 minutesNo description
    tk_ai14 daysGathers information for WordPress by themselves, first party analytics tool about how WP services are used. A collection of internal metrics for user activity, used to improve user experience.
    tk_qssessionGathers information for WordPress by themselves, first party analytics tool about how WP services are used. A collection of internal metrics for user activity, used to improve user experience.
    Advertisement
    Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
    CookieDurationDescription
    OAGEOsessionOpenX sets this cookie to avoid the repeated display of the same ad.
    OAID1 yearThis cookie is set when an AdsWizz website visitor have opted out the collection of information by AdsWizz service or opted to disable the targeted ads by AdsWizz.
    Analytics
    Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
    CookieDurationDescription
    _ga2 yearsThe _ga cookie, installed by Google Analytics, calculates visitor, session and campaign data and also keeps track of site usage for the site's analytics report. The cookie stores information anonymously and assigns a randomly generated number to recognize unique visitors.
    _gat_gtag_UA_31822138_71 minuteSet by Google to distinguish users.
    _gid1 dayInstalled by Google Analytics, _gid cookie stores information on how visitors use a website, while also creating an analytics report of the website's performance. Some of the data that are collected include the number of visitors, their source, and the pages they visit anonymously.
    tk_lr1 yearThe tk_lr is a referral cookie set by the JetPack plugin on sites using WooCommerce, which analyzes referrer behaviour for Jetpack.
    tk_or5 yearsThe tk_or is a referral cookie set by the JetPack plugin on sites using WooCommerce, which analyzes referrer behaviour for Jetpack.
    tk_r3d3 daysJetPack installs this cookie to collect internal metrics for user activity and in turn improve user experience.
    SAVE & ACCEPT
    Powered by CookieYes Logo