With the prices for puppies increasing so drastically through the pandemic and some breeds fetching price tags as high as £3,000, HMRC is now reviewing the sale of litters for potential tax revenue.
As has been mentioned in a previous post, you can make up to £1,000 profit a year from what is classed as a hobby business without being liable for tax. It can be argued that selling an occasional puppy to a friend or family member is not a trade, which is therefore not taxable. However, with demand for puppies up 650% in 2020, many people are now advertising their litters online, which is being picked up by Inland Revenue, landing the breeders with hefty tax bills that they hadn’t accounted for.
If you’re unsure whether selling your puppies is liable for tax, please do not hesitate to contact Folkes Worton on 01384 376964
Folkes Worton – Accounting for the Future
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