Farming: Polytunnel allowance plea to Revenue

Moves by HM Revenue and Customs (HMRC) to treat polytunnels used by soft fruit growers in Scotland as fixed structures for taxation purposes rather than plant and machinery are being challenged by NFU Scotland.

Under HMRC's plan, expenditure on polytunnels will no longer qualify for plant and machinery allowances, a change that could cost growers thousands of pounds.

NFUS policy director Scott Walker said Scotland has been singled out first by HMRC but warns that growers across the UK are likely to be treated in the same way.

"It is a highly technical subject but it is a big issue for soft fruit growers," said Walker, who has been representing the union in talks with HMRC.

"It is clear to us that polytunnels function as plant in a grower's business. We have challenged the revenue's technical specialists' advice that polytunnels be treated as fixed structures.

"We have provided HMRC with details of how polytunnels are used in Scotland to support the case that they need to change their interpretation and allow polytunnels to qualify for plant and machinery allowances."

Walker will be meeting HMRC officials again shortly to pursue the matter further.

"This is a good example of the kind of quiet, detailed work that the union undertakes on behalf of its members, albeit somewhat below the radar," said Walker.

Polytunnels extend the growing season for strawberries by protecting crops from the elements and provide a suitable picking environment in poor weather. In addition, crop quality is improved which, Walker claims, allows growers to achieve the quality demanded by supermarkets.

l Farmers are being encouraged by NFUS to use a biocides and pesticides disposal scheme, which will operate throughout the UK from today until 14 March.

The scheme will make it possible for unwanted, out-of-date or revoked chemicals to be disposed of for a one-off cost of a 20 registration fee.