HMRC is currently undertaking a campaign directed at animal breeders and are writing to people it believes may have failed to pay tax on income from the breeding or sale of animals, including dogs and cats. The letters encourage recipients to make a voluntary disclosure to HMRC to bring their tax affairs up to date and to register for self-assessment if necessary.
A person may have to declare income from the breeding or sale of animals if their sales exceed the tax-free trading allowance of £1,000 for a tax year. Other factors will apply, including whether they have other taxable income.
HMRC may check the person’s tax affairs if they do not respond, or if they fail to declare the correct amount of income or tax. Recipients of the letter who do not have tax advisers may need to seek professional advice before responding, to ensure any previous non-compliance with their tax obligations is addressed in the best way possible.
If you have received a letter from HMRC or you are in receipt of breeding income and you would like to understand your tax position please contact Helen Morgan who is part of our tax team.
