Integrated Administration and Control System (IACS) separate business questionnaire: how to complete

1. These notes are designed to assist you in completing the IACS Separate Business Questionnaire (IACS26). They may not fully address all the questions you have so please contact the Customer Contact Centre on 0300 062 5004 for further guidance.
2. An IACS 26 questionnaire must be completed for every individual business where we are unclear whether more than one business exists. A simple example may be where a father trades as one business but he also trades with his son – we need to be clear, in order to meet current legislation, whether this constitutes two separate businesses or one. Further scenarios and examples may include:

• A new business - you have purchased or inherited a business and are new to farming.  Or you are an existing farmer that has taken on an additional business (e.g. inheritance)
• A continuing business - it may be that a partner has been added or left, or you have changed the business name. We will need to assess whether this change results in a new or continuing business
• A complex business - a business may comprise several different financial enterprises but if they are substantially in the ownership and/or control of the same person or group of persons, in such circumstances the Welsh Government may need to consider them as one business

Businesses that are not substantially in the ownership and/or control of the same person or group of persons would normally be considered as separate businesses by the Welsh Government.

3. Establishing the correct number of businesses will, in turn, allow us to issue the appropriate number of Customer Reference Numbers (CRNs).
4. Please read these Guidance Notes to the end before completing the IACS 26.

Question 1 

a) This business name is the one you use to trade and usually the name the bank account is in. It is important that you use the name exactly as registered for all applications involving Welsh Government as any changes may cause delays. For example if you trade as “John Smith” this is the title you should use and not, for example, “J Smith”.

b) Provide full postal address including post code for this business

c) Insert this business’ CRN number

d) Insert this business’ main CPH number

Question 2 

a) we require a general description here of the principal nature of this business, which may be dairying, livestock etc.

Question 3

a) we need to know what other businesses you have an interest in, and the easiest way for this to be done is by identifying their CRN numbers

Question 4

a) It is likely that the trading status of this business falls under one of these categories, if it does not, please be as accurate as you can in the description:

• a sole trader (i.e. one person owns and is responsible for this business)
• a partnership with a written partnership agreement
• a partnership with no written agreement
• a limited company
• a limited liability partnership
• a public limited company
• a trust
• other, such as being run by executors

If executors are running the business it will help if the details are provided such as the name of the deceased, date of death, and whether these details and documents have already been provided to Welsh Government.  If they have not been provided, please enclose them with this form.

Question 5

a) The date on which this business was formed must be provided

b) Please indicate the primary reason for the formation of this business. Reasons for the formation of the business could include ‘setting up a group or family member in business’, ‘expanding or diversifying an existing business’, ‘inheritance of a farm’ or splitting an existing business for tax or other reasons’ etc. Please be as descriptive as possible.

The following questions (6-11) are contained within the tables on pages 4 and 5. Unlike most other questions these should be answered for each participant in this business to ensure we have the correct information regarding who is involved, their position, responsibility, benefit and liability.

If you need to supply the details of more than six people please copies pages 4 and 5 for extra space (and tick that you have done so at the top of the pages)

Question 6

a) The full name is needed for each person not just initials
b) The status for each participant is needed, such as partner, director, company secretary, trustee etc.  
c) This is the number of shares held and usually is the same as the percentage of the profits/losses attributable to each participant in this business. In a limited company there may be different types of shares involved so please indicate all types and the number held.
d) The number of voting rights may be different to the shares held and indicate different responsibilities for different business participants. For example, different voting rights may be given to people who hold ‘premium’ or ‘ordinary’ shares which may indicate the higher importance of premium shareholders in making the long-term policy decisions for this business. These shares may be held by directors.

Question 7 

a) It is necessary to identify any business members under the age of 16 and whether anyone is acting for them. They should be listed with the other business members and the same information provided, including the details of anyone acting on their behalf or if a Trust is involved.

Question 8

a) Please indicate which participants in this business benefit from the profits and/or suffer any losses accruing.  At a) mark with an ‘L’ whether the participant is a legal owner of this business and at b) please identify whether the participant is salaried, a director or a partner.

Question 9

a) We need to identify which participant(s) have responsibility for making longer term policy decisions affecting the profitability of this business. These are matters that would, for example, be discussed in meetings of the directors or partners. In limited companies these decisions may be taken by named directors. Responses from partnerships should indicate whether all partners together, or selected partners (e.g. senior members of a family) are responsible for these decisions.

Question 10

a) and b) The responsibility or authority for buying and selling on behalf of this business is important. You should indicate at a) whether the participant has any authority in such matters and at b) whether the participant has full responsibility.

This can be a complicated area: some participants may be involved according to financial limits or, for example, on a livestock farm an employed stockman may have authority to buy routine supplies of feedstuffs and pharmaceuticals but not the authority to buy and sell animals at key points in the year, which might be decided by the directors/partners on the basis of market price movements.

Please try and describe the arrangements here if possible, if not use the Continuation Sheet at the end of the IACS 26 questionnaire.

Question 11

a) Responsibility for the long term policy decisions, as opposed to the day to day running of this business, may rest with certain members, please indicate which of the listed participants have such responsibility.  

b) Those participants, if any, that are employed on a contract basis should be identified here

c) Contract farming is a term which is applied to a variety of arrangements whereby a landowner farms land with contractors – perhaps better thought of as “farming with contractors”. He instructs them to provide services to his business which range from individual operations to more comprehensive packages of services. The farming business on the land is his business, the outputs from it are his and he accounts for tax on it.

The majority of contract farming agreements attempt to ensure that the landowner is the only principal occupier of the land and that the contractor does not obtain any rights of occupation as a tenant. The contractor merely has access as a licensee of the owner to fulfil his duties under the purposes of the contract for the owner. The contractor is usually entitled (under the agreement) to a fee for their work, reflecting the labour and machinery that might ordinarily be used. They may also receive additional sums based upon the financial outcome of the farm enterprises benefiting from the contract

d)    Please identify the role of each business participant with a title if possible e.g. farm manager, stockman, arable contractor and a brief job description. If you wish to expand on this please use the continuation sheet at the end of the IACS 26 Questionnaire.

Question 12

a), b) and c) please indicate by ticking the appropriate box whether this business has independent accounts, tax status and VAT registration. Where it does have a separate vat registration please include the VAT number 

Any documentary evidence you have that supports the given responses must be copied and attached. 

Question 13

a) Please state whether this business rents or leases land to the other business(es) in which you have an interest. 

b), c) and d) Where the reply to a) is Yes we need to understand the relevant financial arrangements and to do this you should send us copies of, for example, invoices that support your responses. 

Question 14

a) Please state whether this business exchanges goods or services with other businesses in which you have an interest. These exchanges may be financial loans, or for example, this business providing feed supplies to another.

b) If you have answered Yes at a) please indicate the volume of transactions on a simple “more or less than half” of all this business’ transactions basis.

c) and d) Indicate here whether monies are transferred in support of the transactions and, if they are, the payment terms or arrangements. 

e) Use this box to provide a general “thumbnail” description of the responses you have provided at a) to d). You may want to elaborate on examples, provide details such as whether this business and another business in which you have an interest operate transactions at a more favourable rates than the commercial rate for the area, how many transactions generally take place and whether invoices are raised between the businesses. You should also indicate which business(es) are involved.

Please also indicate the frequency with which these transactions occur – weekly, monthly, annually etc. 

Where you want to be more detailed in your response, please use the Continuation sheet at the end of the IACS 26 questionnaire.

f) We need to have an understanding of the financial arrangements behind these transactions so please indicate whether invoices are raised in support of the transactions described.

g) and h) If invoices are raised, please use these fields to describe them, for example does this farm raise invoices naming another farm in which you have an interest as the purchaser.

i) and j) If invoices are not raised please use these fields to describe the process used, for instance it may be that monies are transferred from this business to another business in which you have an interest without billing, e.g. informally, but still shown in accounts.

The answers to question 14 must be supported by documentary evidence (e.g. specimen invoices, extracts from accounts showing a description of transactions etc.).

Question 15

a) If there are any circumstances in which this business may invest in another in which you have an interest describe here the conditions under which such investment. Such conditions may include expansion or diversification.

b) Similarly, would you expect this business to subsidise another in which you have an interest were that business to suffer a financial loss. Indeed would the opposite apply, in other words would you expect a different business in which you have an interest to subsidise this business were it to suffer a loss?

c) Explain how the funding may work in such a situation.

d) And describe who – from the list you provided at Question 6 - would be able or must authorise such a transfer of funds?

e) Describe how these transfers may be represented in this business accounts and in those of any other business in which you have an interest. For example, they may show as share capital transfers or loans on the relevant balance sheets.

Any documentary evidence you have that supports the given responses must be copied and attached. 

Question 16

a) We need to understand the geographical location of land used by this business; you may find this best achieved by attaching maps, listing field numbers or quoting CPH numbers.

b) and c) Simply indicate with a tick whether the land you have described at a) adjoins or is shared with any other business you have an interest in.

c) If you have answered ‘yes’ to either b) or c) use this box to describe those relationships. Please be as specific as you can, for example “Field 123 is shared for part of the year with another business” or “the main CPH for this business adjoins that used by another business for 7 miles between points A and B”. Again, you may wish to use maps to describe these relationships. If you need more space, please use the continuation sheet at the end of the IACS26 questionnaire.

Question 17

a) We need to understand whether this business and any other businesses in which you have an interest use a shared correspondence address. 

b) Similarly, is there any shared use of agricultural or farm buildings? 

c) If you have answered ‘yes’ to either a) or b), use this box to describe those arrangements. You should indicate which other businesses in which you have an interest share the correspondence addresses or buildings such as barns or tractor or stock restraining/holding facilities. You should indicate whether these buildings are shared freely or commercially, for example whether rent is paid and, if so, if it is at commercial rates similar to those in your area. 

d) Please indicate here if this business is totally dependent upon other businesses in which you have an interest for agricultural and/or farm buildings; in other words, could this business not operate as it currently does without the use of those buildings?

Question 18

a) to f) Use these questions to indicate whether this business shares forage, materials or farm equipment with any other businesses for which you have an interest. Forage may include silage or hay and materials may include seed, agrochemicals, feed supplies and so forth. Against each category describe how those sharing arrangements work, for instance whether they are permanent, which other business(es) they relate to, whether charges are raised and so forth.

Please also use these boxes to describe whether this business and any other business in which you have an interest informally share equipment or participate in a more structured sharing arrangement, possibly including other unrelated businesses. 

Such arrangements may include:

a Machinery Syndicate - in which a group of businesses owns machinery in common and individuals borrow it in turn on a co-operative basis. In this arrangement the related IACS businesses may have a common share between them, or separate individual shares in the syndicate.

a Machinery Ring - in which one member may own a piece of machinery and share it with others. The other Ring members may each contribute different pieces of machinery. Again, the related IACS businesses may have a single membership of a Ring between them, or individual membership. In a Ring, or a simpler sharing arrangement, it is necessary to establish how much permanent working machinery each business owns. If a farm is recorded as being involved in arable, or livestock farming, it should readily be possible for the applicant to identify all those items of machinery and equipment which are permanently available to the farm, or alternatively obtainable from other sources (e.g. for seasonal work).

All the answers to question 18 must be supported by documentary evidence as appropriate.

Question 19

a) to j) Confirmation is required as to whether this business has its own Farm Plan, Business Plan and/or sales contracts. Wherever you indicate ‘No’ please use the associated box to describe how, if at all, it relates to those that any other businesses in which you have an interest have been drawn up. 

Where you have livestock on this business, please use the boxes at g) to j) to enter herd or flock marks and indicate whether this business has its own livestock records. Where the answer is no, explain how they relate to any other businesses in which you have an interest. You should also indicate if the current arrangements are registered with the BCMS.

Please provide documentary evidence to support your responses at a) to j).

Question 20

a) and b) Please provide details of where this business and any other in which you have an interest share labour.  If you reply ‘yes’ to a) please indicate at b) the degree of sharing, for instance an employee may work for three months in this business and nine months in another. You should also say whether the arrangements are free, informal, contracted, for specific purposes only and so forth.  

Where this business undertakes contracting work another in which you have an interest you should include documentary evidence, such as invoices.

Question 21

a) and b) if appropriate, provide details of where the businesses share the buying or selling of farm inputs or produce for example making bulk purchases or selling produce at the local market

Question 22

a) and b) If appropriate, provide details of stock movements between this business and those of another business in which you have an interest.

Question 23

a) and b) If this business is involved with a share farming agreement, please indicate this is the case at a). If you respond ‘yes’ at a) please describe those arrangements at b), for example how is the output of the share farming arrangement divided between the participants e.g. by receipt of an agreed share of farm output, or a share of the proceeds from sales of output. 

Your description should indicate what other businesses are involved and a copy of the agreement should be included. 

Please note: where you use an agent to sign the declaration, please ensure that their details have been lodged with the Welsh Government or a current authority form was sent in with your Single Application Form. Without a record of that authorisation, we will be unable to process this questionnaire.