The Farmers Union of Wales has welcomed the news that the HM Revenue and Customs “time to pay” agreement has been extended to lamb and dairy farmers following a meeting with Aberconwy MP, Guto Bebb.
Speaking after the union’s grand council meeting, FUW president Glyn Roberts said news that HMRC was listening and had put measures in place to help farmers meet their tax obligations without putting extra pressure on their cash-flow must be welcomed.
“Time to Pay arrangements make use of HMRC’s discretionary powers to allow businesses and individuals to pay their tax liabilities over an extended period of time,” he said.
“Each case is considered on its own merits with support being provided for viable, sustainable businesses and individuals who are experiencing genuine short term difficulties.
“Milk prices are at their lowest for five years and have fallen 26 per cent over the last 12 months, while lamb prices have also fallen dramatically having been at their lowest for almost three years during the months of May, June and July.
“The cut in farmgate prices, coupled with falls in CAP payments and likely delays in terms of payments being released, amounted to a perfect storm for the industry,” added Mr Roberts.
“The on-going food import ban by Russia, coupled with changes to the exchange rate, have also had direct and knock-on effects on farm incomes.
“As such any concessions such as that announced by HMRC must be welcomed and we will also continue to urge governments at all levels to do more to alleviate the problems facing farm businesses and the knock-on impact on the wider rural economy.”
Individuals and businesses who find they are unable to pay their tax liability in full and on time can contact HMRC’s Business Payment Support Service on 0300 200 3835.