HMRC continue to route out those breeding dogs or cats their own homes and from the many dozens of cases that I’ve seen, none of them are the puppy farmers that this government is seeking to abolish!
Those breeding kittens of a high pedigree and showing them across the country are being hit hard by HMRC who seek to deny any costs and travel for the showing aspect. The showing is the ‘shop window’ for these pedigree kittens and serves as advertising and should be treated wholly and exclusively as part of the breeding venture. It’s a hard fight as tax investigators seem to be armed with more information on this as many more cases are worked across HMRC and settled.
For dog and cat breeding, record keeping is the main problem area as breeders had always deemed it to be a non-profit making hobby and have therefore not retained the expense invoices and receipts through the years.
All is not lost however and anyone reading this should retain as many receipts as possible from today as an indicator of the cost of breeding and also go back to suppliers, particularly vets and request duplicate invoices as far back as they can.
Whilst you may not have receipts back to say the year 2000 we can paint a picture from the current records and get you the allowances you deserve.
HMRC can in law go back 20 years (even though at present they seem to have Petplan information only going back to 2011) but believe me they are taking steps in relevant cases to get earlier information from Petplan.
Whilst honesty is the best policy in putting forward a transparent case regarding the date you started, most of the cases that I am working currently are resulting in little or no profit or profits falling below the tax-free personal allowance limits.
The key is not to panic, take it a stage at a time and believe in yourself as a genuine animal lover who made little out of it for the years of hard graft it has involved !Share