Agricultural & Horticultural Accounting
Understanding your business and helping it thrive!
Agricultural & Horticultural Accounting
Understanding your business and helping it thrive!
Expert Partners in the Field
At Lewis Brownlee, we go beyond the numbers. We understand that running a farm or horticultural business means planning for unpredictability, safeguarding future generations, and adapting to ever-changing conditions — from policy to weather.
That’s why we offer a dedicated agricultural and horticultural service, with tailored advice for landowners, growers, and rural businesses. Whether you’re managing a family farm or diversifying into agri-tourism, we’re here as your long-term partners in success.
Nurturing growth with a full crop of offerings…
Succession/Inheritance Tax Planning
We’ll help protect your assets, minimise your IHT bill, and ensure your business transitions smoothly to the next generation.
Leasing vs Buying Equipment
From cash flow to credit ratings, we’ll guide you through the pros and cons — helping you make the most tax-efficient choice for your business.
Managing Industry Change
We integrate Xero and farming-specific add-ons that provide real-time insight into cash flow, crop performance and profitability.
R&D Tax Relief
Innovating on your farm? You may be eligible to claim up to 186% of qualifying costs as a tax deduction — or receive a cash credit. We’ll guide you through it.
Structuring your Business
Is a partnership or limited company more efficient for your farm? The right structure can ease succession planning and reduce your tax burden.
Farmers Averaging Relief
Where profits fluctuate year-on-year, this relief can smooth out your tax bill over 2 or 5 years – reducing both tax and National Insurance. We can ensure you maximise this!
Herd Basis
Used for livestock classified as capital assets, the herd basis can reduce tax volatility. We’ll assess if it’s right for your business and support your application.
Capital Gains Tax (CGT) Planning
Thinking about gifting land? With proper planning, gains can be deferred or held over — minimising CGT and aiding generational transfers.
Income Tax Planning
Whether you’re in a partnership or running a company, we’ll optimise income extraction, profit-sharing, and use of reliefs — so more stays in your pocket.
Packages to suit your needs…
We offer flexible accounting packages tailored for agricultural and horticultural businesses:
Bronze: Essential Farm Accounting
Compliance-focused. Includes VAT returns, annual accounts, bookkeeping and tax submissions.
Silver: Financial Oversight & Planning
All Bronze services, plus capital allowance optimisation, regular management accounts and tailored tax planning.
Gold: Strategic Growth & Profitability
Everything in Silver, with added support for forecasting, subsidy/grant planning, succession advice, and R&D claims.
Packages to suit your needs…
We offer flexible accounting packages tailored for agricultural and horticultural businesses:
Bronze: Essential Farm Accounting
Compliance-focused. Includes VAT returns, annual accounts, bookkeeping and tax submissions.
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Silver: Financial Oversight & Planning
All Bronze services, plus capital allowance optimisation, regular management accounts and tailored tax planning.
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Gold: Strategic Growth & Profitability
Everything in Silver, with added support for forecasting, subsidy/grant planning, succession advice, and R&D claims.
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Meet our Agricultural Accounting and Horticultural Business Accounting Specialists
Melanie Welsh
FCCA ACA CTA
Director & Senior Tax Advisor
Melanie Welsh is a Chartered Tax Adviser and dual-qualified ACCA and ACA accountant with nearly 20 years’ experience advising businesses on tax, strategy, and succession. As Director and Head of our Midhurst office, she supports a wide range of clients, with particular expertise as an Agricultural and Horticultural Accounting Specialist.
Known for her strategic approach to tax planning, Melanie helps farmers and landowners navigate complex challenges — from structuring and inheritance tax to long-term business sustainability. Her practical, scenario-based advice is trusted by rural clients looking to grow with confidence and protect generational wealth.
Lewis Pridgeon
IAAP MIAB MAAT ATT
Agricultural & Horticultural Accounting Specialist
Lewis Pridgeon has been part of the Lewis Brownlee team since 2013 and brings over a decade of hands-on experience in tax and accountancy. A qualified member of the Association of Taxation Technicians (ATT), Lewis has deep expertise across a wide range of personal and business tax matters — with a particular focus on supporting clients in the agricultural and horticultural sectors.
With a practical understanding of the unique challenges facing rural businesses — from succession planning and inheritance tax to structuring and averaging — Lewis is known for delivering clear, tailored advice that helps farming families plan for the long term. He also leads our internal tax processes, ensuring our clients benefit from the most efficient and up-to-date strategies.
Meet our Agricultural Accounting and Horticultural Business Accounting Specialists
Melanie Welsh
FCCA ACA CTA
Director & Senior Tax Advisor
Melanie Welsh is a Chartered Tax Adviser and dual-qualified ACCA and ACA accountant with nearly 20 years’ experience advising businesses on tax, strategy, and succession. As Director and Head of our Midhurst office, she supports a wide range of clients, with particular expertise as an Agricultural and Horticultural Accounting Specialist.
Known for her strategic approach to tax planning, Melanie helps farmers and landowners navigate complex challenges — from structuring and inheritance tax to long-term business sustainability. Her practical, scenario-based advice is trusted by rural clients looking to grow with confidence and protect generational wealth.
Lewis Pridgeon
IAAP MIAB MAAT ATT
Agricultural & Horticultural Accounting Specialist
Lewis Pridgeon has been part of the Lewis Brownlee team since 2013 and brings over a decade of hands-on experience in tax and accountancy. A qualified member of the Association of Taxation Technicians (ATT), Lewis has deep expertise across a wide range of personal and business tax matters — with a particular focus on supporting clients in the agricultural and horticultural sectors.
With a practical understanding of the unique challenges facing rural businesses — from succession planning and inheritance tax to structuring and averaging — Lewis is known for delivering clear, tailored advice that helps farming families plan for the long term. He also leads our internal tax processes, ensuring our clients benefit from the most efficient and up-to-date strategies.
Blogs
Farming-focused strategies for agricultural IHT relief
Changes to Inheritance Tax (IHT) rules coming into effect in April 2026 could have significant implications for farming families. The government plans to cap the...
DEFRA Grants: An Overview for Farmers
When it comes to improving and modernising your farming operations, DEFRA grants offer vital financial support. These grants, provided by the Department for...
Guides
RECENT ISSUES RAISED BY OUR HORTICULTURAL CLIENTS
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FAQs
What is agricultural accounting and how is it different from standard business accounting?
Agricultural accounting deals with the financial management of farms and rural businesses. It differs from general accounting due to seasonal income, complex assets like livestock and land, and agricultural subsidies. We help clients navigate these unique challenges with expert advice.
Do I need to register as a business if I run a farm?
Yes. Farming is treated as a business by HMRC, even for sole traders or family-run farms. You must register for Self Assessment and possibly VAT depending on turnover. We can help ensure you are compliant from the start.
What farming income is taxable?
Taxable income includes crop and livestock sales, agricultural subsidies, and diversified income like glamping or farm shops. Each income stream may be taxed differently, so accurate reporting and planning are vital.
Are there any special tax reliefs available to farmers?
Yes. Agricultural Property Relief (APR) and Business Property Relief (BPR) can significantly reduce Inheritance Tax. Income averaging allows profits to be averaged over 2 or 5 years. We advise on eligibility and optimise tax efficiency.
Can I average my profits for tax purposes?
Yes. Income averaging allows farmers to spread profits over 2 or 5 years to manage fluctuating earnings. We assess whether this approach will reduce your tax liability.
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Do I need to comply with Making Tax Digital (MTD)?
Yes. From April 2026, farms with turnover above £50,000 must keep digital records and submit quarterly updates. We help choose suitable MTD-compliant software and ensure ongoing compliance.
What counts as allowable expenses on a farm?
Allowable expenses include feed, seed, fertiliser, vet bills, vehicle use, wages, and equipment maintenance. We help categorise and claim all eligible costs to reduce your tax bill.
How should I handle diversified income streams?
Diversification such as letting out barns, farm retail, or solar often creates new VAT and tax implications. We review your setup to ensure efficiency, compliance, and relief opportunities.
What happens to the farm on death or succession?
With proper structuring, APR and BPR can protect the farm from Inheritance Tax. Without planning, families may face large tax bills. We offer long-term succession advice tailored to your circumstances.
Can Lewis Brownlee help with farm bookkeeping and software setup?
Yes. We provide full bookkeeping, Xero setup tailored to agriculture, payroll, cash flow planning, year-end accounts, and tax returns. Our support is bespoke to your farm’s size and goals.