My cases studies are revealing many different scenarios for the nations dog and cat breeders.
It’s not a hobby!
HMRC will NOT treat breeding as a hobby! this does not mean you will automatically have to pay any tax
What you do have to do however is keep good records to prove your income and expenses
Do you give an invoice or other paperwork to your buyers?
Do you keep receipts for everything you spend?
Maybe the answer is no?
Taxman’s Mantra – No receipt No claim!
In practice HMRC will accept fair and reasonable estimates of expenditure as dogs have to be fed and watered, kept warm and healthy and bedded down!
With an experienced adviser you will be able to prepare accounts to include expenses with or without a receipt as part of a negotiated settlementShare