NSA speaks out in support of levy board following damaging HMRC decision

23rd March 2022

Following the HMRC ruling last week that AHDB will no longer be able to recover VAT the National Sheep Association (NSA) is speaking out in support of the levy board and its appeal on the decision that will mean it is no longer able to recover an estimated £4million.

NSA Chief Executive Phil Stocker says: “NSA is bitterly disappointed over the final decision by HMRC that AHDB will no longer be exempt from paying VAT. This will reduce total financial resources by some £4million with the beef and sheep sector being hit with a £1.4million reduction in cash available to be used to support our industry.

“With the total beef and lamb levy being some £16million this equates to a 9% reduction at a time when our industry is going through a massive amount of change and needs additional investment, not less. Coupled with the recent Defra decision not to allow levies to be increased for specific activities this will constrain our levy body just at the point it needs to be doing more.” 

The ruling follows HMRC’s formal decision to alter the VAT status of the levy board last Autumn and will now come into effect from next Friday 1st April 2022.

Mr Stocker concludes: “It does make you question whether the UK Government is serious about investing in England’s farming and food production. It is both astonishing and extremely concerning given the global security challenges we are facing that decisions are being taken that reduce investment.”

Registrations are still open for levy payers to have their say on the major challenges for the sheep sector and the work AHDB does to help counter these and NSA is encouraging all sheep farmers in England to sign up by 31st March 2022 to have their say. Registrations can be completed on the AHDB website.