Basic Payment Scheme (BPS) 2016‘Young and new farmer’ formGuidance

2016

Visit our webpage: www.gov.uk/rpa/bps2016

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What this form is forUsing this form farmers (or their representative) can apply for BPS entitlements from the national reserve as a ‘young’ farmer or a ‘new’ farmer. They should also use it to provide proof that they are eligible under the young and new farmer rules. This includes proof that they are eligible for the ‘young farmer payment’. Young farmers must apply for the young farmer payment on their main BPS application.

To apply for entitlements, fill in Parts A, B, D, and ask an accountant or solicitor to fill in the certificate at the end of the form.

To provide proof that you are eligible for the young farmer payment fill in Parts A, C, D and ask an accountant or solicitor to fill in the certificate at the end of the form.

If you have already successfully applied for the young farmer payment in the past, you may not need to ask your accountant or solicitor to fill in the certificate again – read the guidance below to find out more.

Eligibility rulesTo prove that they are eligible under the young or new farmer rules, farmers should complete the relevant parts of the form and send the form and any relevant supporting documents to an accountant or solicitor to complete the certificate. It is the farmer’s responsibility to make sure that the documents they give to the accountant or solicitor are up to date and accurate.

For more information about young and new farmer rules read pages 92 to 95 in the BPS rules at www.gov.uk/rpa/bps2016. This includes - when to apply – what in ‘control’ means – how the rule works for partnerships – more about the young farmer payment. Or to find out what is known as an ‘agricultural activity’ read page 8 in the BPS rules.

Use built-in checks to help you get your application right and get an instant receipt

Do more than just apply:

• check your entitlements online and transfer them

• view maps and aerial photography

• print maps of individual land parcels

• transfer land parcels online

https://www.ruralpayments.service.gov.uk

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When you can reuse your 2015 accountant’s or solicitor’s certificate for 2016If a farmer applied for the young farmer payment in 2015 and was successful, but didn’t apply for entitlements in 2015, they can apply for both in 2016 if they wish. If there have been no changes to the farm business structure since their 2015 application, they can send to RPA a fully completed ‘Basic Payment Scheme (BPS) 2016 – Young and New farmer’ form including the accountant or solicitor’s certificate at the end of the form, or all of the following:

• the same accountant’s or solicitor’s certificate to RPA that they provided for their 2015 application

• a letter confirming that there have been no farm business structure changes since their last application

• a completed ‘Basic Payment Scheme (BPS) 2016 in England – Young and New farmer’ form – but they don’t need to have the accountant or solicitor certificate filled in.

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If a farmer applied for the young farmer payment and entitlements in 2015 and was successful, and they apply for the young farmer payment again in 2016, if there have been no changes to the farm business structure since their 2015 application, they can send to RPA a fully completed ‘Basic Payment Scheme (BPS) 2016 – Young and New farmer’ form including the accountant or solicitor’s certificate at the end of the form, or both of the following:

• the same accountant’s or solicitor’s certificate to RPA that they provided for their 2015 application

• a letter confirming that there have been no farm business structure changes since their last application.

Young farmers who have received entitlements once cannot apply for them again.

New farmers need to show that:

• they are at least 18 years old when they make their 2016 BPS application

• they are in ‘control’ of the farm business that is applying for BPS - this can be as a sole trader

• their business started its ‘agricultural activity’ in 2014 or later

• they didn’t carry out (or weren’t in control of carrying out) any agricultural activity in the 5 years before their business started its agricultural activity.

New farmers must apply for BPS entitlements no later than 2 years after the calendar year in which the business started its agricultural activity (farming).

New farmers who have received these entitlements once cannot apply for them again.

Young farmers need to show that they:

• are at least 18 years old but not more than 40 years old when they make (or made) their first successful BPS application

• are in control of the farm business that is applying for BPS

• set up or took control of their farm business for the first time on 1 January 2011 or later.

ExampleA farm business started in 2014. To apply for these entitlements, the farmer in control of this business cannot have been in control of carrying out any agricultural activities from 01/01/2009 to 31/12/2013.

This farmer must apply for BPS entitlements in 2016 - they cannot apply in 2017.

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Where to send the formThe accountant or solicitor should return the form having completed the certificate to the farmer, along with the supporting documents the farmer supplied to them.

The farmer must then submit the original form including the certificate to RPA. The farmer should keep the documents they sent to the accountant or solicitor for any future inspection by RPA and they may want to keep a copy of the form for their records.

They should send the completed original form (and the 2015 certificate and covering letter if this applies as explained earlier in the rules about young farmer) to:

Rural Payments Agency

PO Box 352

Workshop

S80 9FG

Who can fill in the certificate at the end of the formThe certificate must be completed by a professionally qualified accountant or solicitor:

An accountant must be a practising full member of either:

• a CCAB professional accountancy body (ACCA, CIPFA, ICAEW, CAI, ICAS), CIMA or overseas equivalent

• AAT or another equivalent accountancy institute or association which is a member of IFAC.

The accountant may be the auditor of the applicant’s accounts, but must not be an employee of their business.

A solicitor must hold a practising certificate authorised and regulated by the Solicitors Regulation Authority (SRA) or be registered on the Roll of Solicitors maintained by the SRA. The solicitor must not be an employee of the applicant’s business.

If the applicant’s business is a limited company, the accountant or solicitor must not be a director appointed in accordance with Section 167 of the Companies Act 2006.

How to fill in the certificate at the end of the formAccountants or solicitors must read this guidance (and if necessary, pages 92 to 95 in the BPS rules) and complete the ‘Accountant or solicitor certificate to confirm new or young farmer status’ at the end of the form. The certificate must be a statement of factual findings and the accountant or solicitor must use documentation supplied by the applicant to confirm their status within the agricultural business.

The documentation the applicant has supplied to the accountant or solicitor should enable them to complete the certificate. The accountant or solicitor must complete all applicable sections.

The accountant or solicitor can choose to provide a liability disclaimer.

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Sections to complete

1) Accountant or solicitor certificateIn this section, the accountant or solicitor should fill in the [customer/applicant’s] details which they can find in Part A.

They should also delete the wording as appropriate.

2) Head(s) of the HoldingThe accountant or solicitor must give the following information, using the legal documents provided:

1. the names of all of the individuals who are in ‘control’ of the agricultural business.

2. the percentage of shares owned (or for partnerships this could be the percentage of profit shares) and percentage of votes held by each of the people named at 2a.

3. details of any legal agreements which are in place to enable the people named at 2a to vote together. Where the evidence provided shows that the farmer/claimant is a sole trader, the accountant/solicitor should enter ‘100%’ for shares owned and votes held.

4. a list of all the documents that have been used to provide the details in 2a to c.

3) Agricultural Activity – this applies to ‘new’ farmers onlyThis section only needs to be filled in if the applicant is a new farmer applying for entitlements. The accountant or solicitor must, using the documents provided by the applicant, provide the date the business started its agricultural activity. This should be the date the business was set up - unless the applicant has provided proof showing that the agricultural activity of the business started after this. In this case, the date the agricultural activity started should be given.

Also list any documents that have been used to provide the details in 3.

4) Agricultural Business – this applies to young farmers onlyThis section only needs to be filled in if the applicant is a young farmer applying for new entitlements or the young farmer payment. The accountant or solicitor must, using the documents provided by the applicant, provide the date the applicant set up or took control of the agricultural business.

Also list any documents that have been used to provide the details in 4.

5) Date(s) of birth of the head(s) of the holding named in section 2a.The accountant or solicitor must, using the documentation provided by the applicant, provide the date(s) of birth for the people named at 2a. If there is more than one person fill in one date of birth in the box provided then give the other dates of birth in the box below the first date of birth.

Also list any documents that have been used to provide the details in 5.

6) Accountant’s or solicitor’s liability disclaimer (optional)The accountant or solicitor can choose to provide their and their firm’s disclaimer in this section.

7) DeclarationsThe accountant or solicitor must sign and fill in this section with their and their firm’s details.

EvidenceThe type of evidence that an applicant will need to provide to their accountant or solicitor to support their application will depend on their business structure. We have defined typical types of business structures below:

• a sole trader;

• a partnership; or

• a company registered at Companies House

The tables below provide examples of the types of documentation which a applicant may send to the accountant or solicitor to show eligibility. This list is a guide it is not exhaustive:

Sole traders1)Head of Holding One of the following:

• VAT registration certificate or income tax return naming the applicant

• tenancy agreement, showing the applicant leased the land

• evidence of inheritance (land or business)

• business bank account statement, naming the applicant as the account holder

• business loan agreement naming the applicant as the borrower

• annual business accounts, naming the applicant as sole beneficiary.

2) & 3) Agricultural Activity/Business

One of the following:

• land deeds or title register showing the date the land was purchased

• tenancy agreement with start date

• VAT/income tax document showing the date of registration

• evidence of inheritance, showing the date

• business bank account statement or business loan agreement, including the date it was set up

• annual business accounts including the date they were first produced.

4) Date of birth One of the following:

• passport

• birth certificate

• driving licence.

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Partnership1)Head of Holding

To prove the applicants are in control of the business

One of the following:

• partnership agreement showing the partners and percentage shares/votes held and, where it exists, any variation of previous partnership document showing the changes to the original agreement.

• legally binding agreement showing business shareholdings

• partnership accounts if they demonstrate shares ownership.

• annual accounts naming the applicants and number of shares/votes held.

2) Agricultural Activity (new farmer)

Date the agricultural business commenced

One of the following:

• land deeds or title register showing the date the agricultural land was purchased

• tenancy agreement with start date

• VAT/income tax document showing the date of registration

• evidence of inheritance, showing the date

• business bank account statement or business loan agreement, including the date it was set up

• annual business accounts including the date they were first produced.

3) Agricultural B usiness (young farmer)

Date the applicant set up or became in control of the agricultural business

One of the following:

• partnership agreement demonstrating the date it was agreed and, where it exists, any variation of previous partnership demonstrating the date of variation.

• legally binding agreement demonstrating the date the agricultural business shareholding was set-up.

• partnership accounts demonstrating the date the applicant first set-up.

• annual business accounts including the date they were first produced.

• annual accounts including the date they were first produced.

4) Date of birth One of the following:

• passport

• birth certificate

• driving licence.

Companies registered with Companies House1)Head of Holding

To prove the applicant is in control of the business

One of the following:

• legally effective document demonstrating the agricultural business shareholdings (this information is likely to be lodged at Companies House).

2) Agricultural Activity (new farmer)

Date the agricultural business commenced

One of the following:

• legally effective document (this information is likely to be lodged at Companies House) demonstrating the date the agricultural business commenced.

3) Agricultural Business (young farmer)

Date the applicant set up or became in control of the agricultural business

One of the following:

• legally effective document (this information is likely to be lodged at Companies House) demonstrating the date the applicant became in control of the agricultural business.

4) Date of birth One of the following:

• passport

• birth certificate

• driving licence

RPA will check their records to see if they have any evidence to show that the applicant has previously been in control of a previous agricultural business. Carrying out agricultural activity as an employee of a business or as an agricultural contractor would not count as having had control of an agricultural business.

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More information

Contact RPA All written queries, forms and maps should be sent to:

Rural Payments PO Box 352 Worksop S80 9FG

Email: ruralpayments@defra.gsi.gov.uk

Call: 03000 200 301 open 8.30am to 5pm Monday to Friday (except Bank Holidays).

Website: www.gov.uk/rpa

Twitter: @Ruralpay

When you contact RPA please give your Single Business Identifier (SBI) and your business name.

If you’re deaf, deaf blind, deafened, hard of hearing or speech impaired and have a text phone, you can use Text Relay (previously known as Type Talk). This is a telephone relay service that means you can communicate with hearing people by telephone. To contact RPA using Text Relay, dial 18001 03000 200 301 from your text phone.

To use text relay on a device such as a smartphone or computer you also need to download the free Next Generation Text app from www.ngts.org.uk or from a marketplace such as Google Play or the App Store.

You can make a text relay call in a number of different ways and using a number of different devices.

For more information go to www.ngts.org.uk

To receive this guidance in large print, or another alternative format, contact RPA.

How to complain Farmers or agents who are unhappy with a decision or service they’ve had from RPA, can call, email or write to RPA.

For contact details and more information about how to complain or appeal go to www.gov.uk/rpa and click on ‘Complaints procedure’ in the ‘Corporate information’ section.

Data Protection Defra is the data controller for personal data you give to us or we hold about you. We use it in line with the Data Protection Act.

For more information, go to www.gov.uk/rpa, choose ‘Contact RPA’ and click on ‘Personal information charter’.

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© Crown copyright 2016

You may re-use this document (not including logos) free of charge in any format or medium, under the terms of the Open Government Licence v3.0. To view this licence visit http://www.nationalarchives.gov.uk/doc/open-government-licence; or write to the Information Policy Team, The National Archives, Kew, Richmond, Surrey, TW9 4DU or email: psi@nationalarchives.gsi.gov.uk

This document is also available on our website at www.gov.uk/rpa/bps2016

Any enquiries regarding this document should be sent to us at:

Webmaster.rpa@rpa.gsi.gov.uk

www.gov.uk/rpa

Produced by the Rural Payments Agency

Version 1.0

March 2016

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