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HMRC Focuses on Animal Breeders

Are you an animal breeder? If so, it’s important to be aware of HMRC’s recent outreach to individuals who may have underpaid tax on income from breeding or selling animals, including dogs and cats.

HMRC’s Letter Campaign

HMRC is sending letters to individuals they believe may have failed to declare income from animal breeding or sales. If your sales exceed the tax-free trading allowance of £1,000 for a tax year, you may need to declare this income.

Making a Voluntary Disclosure

If you have income to declare for a previous tax year, HMRC encourages you to make a voluntary disclosure using their online service within 30 days of receiving the letter. This will allow you to address the issue proactively and potentially avoid higher penalties.

Key Points to Remember

  • Penalty Implications: HMRC may charge a penalty if you’ve underpaid tax.
  • Self-Assessment: If your income continues to exceed £1,000, you’ll need to register for self-assessment and complete a tax return.
  • Importance of Responding: Failure to respond to HMRC’s letter could lead to further investigations and potentially higher penalties.

CDF: A Path for Tax Fraud Admission

For those who have committed tax fraud related to animal breeding, HMRC offers the Contractual Disclosure Facility (CDF). By admitting to tax fraud and providing detailed information, you can potentially avoid criminal prosecution.

If you’re an animal breeder and have received a letter from HMRC, it’s crucial to take action promptly.

Seeking advice from a tax professional can help you understand your specific situation and ensure you comply with your tax obligations.

‘Insight’ Update

Since this ‘Insight’ was first published on 23rd August 2024, we have dealt with several HMRC investigations into the income and expenses of Animal Breeders. In all instances, we have been able to give clear advice and deal with HMRC on the Breeder’s behalf, bringing a satisfactory conclusion for both parties. The testimonial below, is just one example of how we have been able to help.

Our Clients Say

Thank you Jack for all your support. I could not have sorted my tax issues without you.

I was emotionally wrecked. I had bred pups from my dogs and not paid tax and when I went to see another accountancy firm I felt judged from the start and very ashamed. A friend then recommended Folkes Worton. From the start the attitude was – no problem let’s get this sorted.

Friendly, personal, professional advice/help and all quickly sorted. I can now sleep. I will use Folkes Worton for all future tax returns.

Highly recommended!

Successful outcome for a Dog Breeder

We can deal with HMRC investigations with up to 6 years of records starting from £500+VAT (depending on the complexity of the case)

We are happy to meet to discuss and quote on your case FREE OF CHARGE with no obligation.

Here to help

Call us on 01384 376 964

Meet the Tax Team

Matthew Morris FCCA CTA
Tax Partner
Harry Chaplin
Accountant
Jack Meredith ACA
Chartered Accountant
Ellie Smith ATT
Tax Senior

Folkes Worton LLP Chartered Accountants
Accounting for the Future