When is a hobby not a hobby! Are you in the doghouse!
Have you had a notice of Enquiry from HMRC investigating you for breeding dogs or cats. HMRC are sweeping the country from the North East to the South West!
Why is this? What have they got on you?
Well, as insurers like “Petplan”, have been paying you a commission in the form of high street vouchers for recommending the insuring of those puppies sold, then HMRC have to right in law to be told just who you are, as you have received a payment in kind from them.
Petplan have complied and provided HMRC with a list of your names and addresses amongst other details. HMRC are sitting on information on your income and trade as a dog or cat breeder and the stakes can be high. 2014/15 seems to be the initial year in question but HMRC can go back to day one and 20 years if necessary.
And all you were doing was giving a free month’s insurance as a service to your buyers, with the option to take it up! Now you pay the price.
HMRC will automatically ask you in for a meeting or assume they can visit your private home to inspect the premises and records and question you?
BUT remember what ever they say you cannot be compelled in law to be interviewed by HMRC. A tax specialist can do it all for you by correspondence without the need for any meetings.
Many breeders may well be doing it as a hobby from their own personal pet or the business may be that of a person with no other taxable income. So breathe a sign of relief and hope that an adviser can agree that no tax is due overall.
Larger breeders will fall under the “Badges of Trade” whereby clearly they are trading and generating a decent profit and may also have a license from the council to do so.
What you need is an experienced tax investigations adviser to get the case sorted on your behalf, cancel the meeting and deal with HMRC direct for you with speed.
You can claim expenses for Vets bills, food, bedding, heating and water, stud fees etc
Things get trickier where there are no records held and cash is involved, but definitely it’s not insurmountable, as we can always evidence them somehow!!
My experience is that dogs are generally sold for cash but receipts are given to the purchasers. This with the Petplan evidence held will soon indicate the level of income per annum.
A trained negotiator like Lindsay, with her inside knowledge, will deal with you with kindness and empathy as well as using her excellent technical acumen to get you the fair and reasonable outcome you desire.
Penalties are chargeable for non-declaration of tax liabilities but with prompt action, no delays and full co-operation we are on track from day one to reducing these to the absolute minimum.
Call Lindsay for a no obligation chat and discover the route to peace of mind, a clean sheet and a bright future.Share