Single farm payment news - May 2009
Accounting treatment of Single Farm Payments for 2008 onwards
As the rules of the SFP scheme have been revised from 2008, claimants now only need to have the land at their disposal on one day (which, for the UK has been set at 15th May) in each scheme year.
Claimants do not need to hold the land for the whole of the calendar year, but they remain responsible for making sure that the land is in agriculture and that the cross-compliance requirements are met for the whole calendar year.
HMRC have agreed the following accounting/taxation treatment:
The payment can be recognised on either of two dates: 15th May as this is the only day in which claimant has to hold the land or 31st December of the scheme year since the criteria includes the requirement that the land must be eligible for the entire calendar year.
The date chosen for the accounting treatment of the SFP will have to be consistent each year but will give opportunities for accelerating or deferring the income in some circumstances.
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