Will I pay tax?
Where a breeder has another job as well as breeding and selling puppies or kittens they may find themselves falling within the tax bracket if they have made a profit.
Everyone has a level of Tax Free personal allowances each year but once these have been used up, any income over that is taxable being a net profit from breeding.
In my cases after I’ve prepared accounts net profits have not been high and many breeders have made losses.
If breeding is your only source of income then you can effectively have a taxable profit of up to £11,000 last year and still pay no tax.
What has caused serious issues for some is for those who have claimed Child Tax Credits whilst breeding animals.
Any profit arising will have to be reported to the DWP after the tax enquiry has been settled. CTC has to be repaid and the whole matter has to be handled very carefully to avoid serious action by the benefits agencies.
Lindsay can help with this for a very reasonable fee.
Call her on 07584 706664