Bee tax

[scuttlefish]

Boring question for the commercial beeks on here - do you treat hives/hive parts as fixed assets (i.e. capitalise them and write the expenses off over a no. of years) for tax purposes or expense them fully in the year of purchase?

If capitalised, what period do you write them off over?

 

[RogueDrone]

Not a commercial keeper but as the hive will be in use over 1 yr it should be an asset and I would say over 3 to 5 yrs.

 

[Steve_gts]

Doesn't it also depend on the value of the item? I seem to remember that over a certain value should be over a few years but under it can be done in one.

 

[scuttlefish]

Doesn't it also depend on the value of the item? I seem to remember that over a certain value should be over a few years but under it can be done in one.

Individually or in bulk though? - one super might not make the limit but forty or fifty would collectively be worth capitalising.

What do tax rules allow/require though? Treat them as plant & machinery? Or expense fully in year of purchase? I know how I'd account for them, but tax is a different matter.

 

[Walrus]

Plant & Machinery

Based on this:

In his judgement Hoffman, J said that there were three tests, all of which can be called functional, to be considered in deciding whether an item was plant. These tests are:

Is the item stock in trade?
Is the item the business premises or part of the business premises (the premises test)?
Is the item used for carrying on the business (the business use test)?

To be plant the answer to the tests is No, No, Yes

I would say that hives ARE plant if your business is selling say, honey or bees, but NOT if your business is selling hives (in which case they are stock).

http://www.hmrc.gov.uk/manuals/camanual/CA21140.htm

 

[scuttlefish]

Excellent, thanks.

 

[For want of a better word]

swmbo writes a car off every year!

 

[BDCS]

I'd do whatever suits you best