Smallholders Insurance from Greenlands

Author Topic: why does chopped straw have vat but bales not?  (Read 5676 times)

smudger

  • Joined Jan 2012
  • North Devon/ West Exmoor
why does chopped straw have vat but bales not?
« on: July 15, 2013, 02:02:40 pm »
Not sure if right place to post...


I have managed to get some straw at £3/ bale but some round here want £4/ bale (zero VAT). At that price chopped straw (dust extracted, easier to handle / store /  get delivered) starts to look a better bet - c£6 ish a bale but incl VAT so more like £5 -odd. Same for miscanthus bedding, which is easier to lift when the big muck out starts.
Traditional and Rare breed livestock -  Golden Guernsey Goats, Blackmoor Flock Shetland and Lleyn Sheep, Pilgrim Geese and Norfolk Black Turkeys. Capallisky Irish Sport Horse Stud.

Still playing with tractors

  • Joined Jul 2012
  • Cumbernauld
  • You can never have enough HP
Re: why does chopped straw have vat but bales not?
« Reply #1 on: July 15, 2013, 02:49:47 pm »
Does it go through a third party processor after the farm?

smudger

  • Joined Jan 2012
  • North Devon/ West Exmoor
Re: why does chopped straw have vat but bales not?
« Reply #2 on: July 15, 2013, 09:48:03 pm »
Most of the miscanthus bedding is sold/processed by the grower (albeit via a retailer). The chopped straw guys may be buying it in. Not sure if its a 'feed stuff' thing ie baled straw could also be feed for cattle and not just bedding? No accountants on TAS?
Traditional and Rare breed livestock -  Golden Guernsey Goats, Blackmoor Flock Shetland and Lleyn Sheep, Pilgrim Geese and Norfolk Black Turkeys. Capallisky Irish Sport Horse Stud.

doganjo

  • Joined Aug 2012
  • Clackmannanshire
  • Qui? Moi?
    • ABERDON GUNDOGS for work and show
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Re: why does chopped straw have vat but bales not?
« Reply #3 on: July 15, 2013, 10:14:06 pm »
Animal feeds are zero rated, bedding isn't. You can zero-rate most food that is to be fed to animals (including birds, fish, etc) except for canned, packaged or prepared pet food, packaged food for wild birds, and biscuits and meal for cats and dogs.  Except that working dog food is zero rated.  Supply of straw of the same kind as animal food even where used as bedding is liable at the Zero rate; basically if it has anything done to it then it attracts rated VAT..
Always have been, always will be, a WYSIWYG - black is black, white is white - no grey in my life! But I'm mellowing in my old age

honeyend

  • Joined Oct 2011
Re: why does chopped straw have vat but bales not?
« Reply #4 on: July 15, 2013, 10:15:59 pm »
I would there is no VAT on natural straw as its classed as feed, once its processed its classed as bedding.
Wood pellets sold as bedding are more expensive than the same pellets sold as fuel.
 I would look at some of the suppliers that sell straw as chaff for food as that will be zero VAT but still expensive.Paying £4 a bale the stuff you are buying must be gold plated Have you thought of buying a Heston(about £20), put on a couple of pallets and covered in a tarpaulin, the slices that come off are roughly half a normal bale. I give them as food and then what is left goes into the bed.
 

 

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