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.
We are here to help on 01384 376 964
Folkes Worton LLP Chartered Accountants
Accounting for the Future