The decrease in the milk pay-out has probably made you feel like pulling your hair out too. These months where there have been minimal income have been testing times for our farming clients and obviously has a flow on effect to businesses that supply to farmers. With milk being worth less than it was 12 months ago it is timely that we are all reviewing where costs can be trimmed or prioritised. What things are being purchased that aren’t required or don’t lead to profit and can expenditure be delayed.
A number of clients have asked whether they need to be paying any tax due to the decrease in the pay-out. On first look of 2015 results, profit levels were still high which is what the IRD base their provisional tax on. We know that income levels will be a lot lower so farmers whose expenditure doesn’t vary should look at re-estimating their expected profit for the 2016FY later in this year to see if further provisional instalments can be reduced. We will be writing to you about this later in the year.
Feel free to call Kylie at reception and book in to see me if you would like to discuss your situation.
Fingers crossed winter is over and the warmer weather is on the way.
Talk soon, Mark