But you will be able to deduct any expenses, such as stud (is is called that with dogs?) *Updated on the 21st June 2018. There are no changes to breeding regulations in Wales, Scotland and Northern Ireland. When registering a litter with The Kennel Club, a breeder has to declare that they accept our rules and regulations, which already includes reference to the breeding licence and so this will simply continue. If you don’t sell any of the puppies, then you will not require a licence. Search our reputable UK dog breeder pages & get in touch with them to find puppies for sale matching your requirements If you don’t intend to using your dog for breeding, you should consider getting them spayed or neutered.Spays will range between £130 and £365, whereas castrations will be between £110 - £300. If you use our e-ile system, the credit will be calculated for you. Breeding cats, on the other hand, is only protected by the Pet Animals Act 1951. The sale of dog semen to consumers is considered a retail sale. Factors that will be considered include history in meeting licensing standards, nature of complaints received and how they were dealt with and the quality of record keeping. We specialise in animal rescue & furthering the welfare cause for all animals. A person will be deemed to be carrying on a business for breeding dogs for sale where four or more litters are born, to one or more bitches, for the purpose of sale, in the period of one year. My wife started a dog breeding business so how do we show our expenses and money lost? Dog breeding has two laws that regulate it: Breeding of Dogs Acts 1973 and 1991 and by the Breeding and Sale of Dogs (Welfare) Act 1999, which requires you to have a licence to breed dogs. It’s aimed at micro-business owners like those on Etsy, Amazon or eBay to help simplify taxes. Sometimes, dogs are your business because you are a professional breeder. If you have any further questions please contact Defra or your local authority. 17 Tax Deductions for Dog Owners. A person who says "small time breeders don't have to pay taxes because it's looked at as 'hobby income' is going to be a small time breeder who wants to evade paying taxes on income and is making something up to rationalize it. Yes, there is a difference between a hobby and a business. We must be sure that … Further examples are provided within the government’s guidance document: The Animal Welfare (Licensing of Activities Involving Animals) (England) Regulations 2018, Guidance notes for conditions for breeding dogs. We are sorry for any inconvenience caused. The guidance document states that those who fall under a threshold of £1,000 of trading income will by default be considered not to be running a business. Ian Dalzell. Now, not everybody runs their kennel the same way, some people can afford huge expenditures while other ones are more frugal.Remember, breeding dogs means that you are committed to the breed in th… Breeders who are members of a UKAS Accredited Scheme such as The Kennel Club Assured Breeders and who have been accredited under the scheme for three or more consecutive years should be classified as a ‘low-risk’ breeder and be given a three-year licence period. You must register each dog with your local council (where I live it is mandatory after a pup is 12 weeks of age) and it will be given a tag to wear at all times, and required to also have a collar and … A person carries on the activity of dog breeding for the purposes of section if that person keeps on premises three or more breeding bitches and. Please be advised to contact your local planning office for further information on whether you may or may not need planning permission. Dogs must be registered and a yearly tax is paid to the municipality based on the number of dogs. HMRC launched a new tax allowance called the Trading Allowance in 2015. The new licensing conditions have been drafted to differentiate between those breeding within their home and those who have purpose-built breeding facilities. If you breed your dogs, sell puppies regularly and you do not have a kennel license - the answer is unfortunately YES. The biggest change to the regulations is the reduction of the litter threshold for which a dog breeding licence is required. Estimates range from £6,500 – £33,000. The practice of cutting off dogs’ tails was originally carried out to avoid paying taxes on them (because “dogs with tails” used to be a reasonable thing to impose taxes on). Consider whether you are ready for allthat this brings. A profit-seeking motive is not the only marker set as to whether someone is operating a business and Defra has made it clear that they do not intend to target hobby breeders under the regulations. In October 2018 the government in England introduced a new lawabout breeding and selling puppies. e-mail: customeradvice@apha.gov.uk Tel: 0300 020 0301. The b/f losses more than covered the breeding gain and after a tussle (IR wanted hiring out dogs to be a seperate trade if you please) reduced the taxable quantum of the hiring fee. Microchipping. The sales tax rate is based on the location where the dogs are delivered. Additionally despite exceeding the £1,000 threshold it is clearly not a business operation, so no breeding licence would be required. How to Get Tax Deductions for Your Dog Breeding Business. A breeder is defined as anyone in the business of breeding and/or who has bred five or more litters in a 12-month period (as long as at least one puppy is sold). The moment it makes money it stops being a hobby!I had one of these - fortunately before the £100 penalty for late registration. Only licensed breeders' advertisements are required to include their licence number, the issuing local authority, a recognisable photograph of the dog being advertised and the dog's age. What about the good old badges of trade - intention to make a profit - was bitch[***] acquired just to breed - number and frequency of transactions - many people do like to breed once from a pedigree bitch[***] (did he keep any of the puppies himself?) ?Jane - i don not follow your comment regarding IBA's ... can you please clarify ... Race Horses & Greyhounds are regarded as wasting chattels ... but have nothing to do with IBA's. To obtain a low-risk rating breeders will need to demonstrate they have been maintaining acceptable standards for a minimum of three years. Defra recognise that an assured breeder will be achieving standards that are higher than those required by the new law and so if you are a member of the scheme or breed to those standards you will already be satisfying the new legal requirements. a one-star breeder will be inspected more frequently than a five-star breeder. New regulations on dog breeding in England were introduced from 1st October 2018. It is compulsory from April 2016 onwards for all dogs in the UK to be microchipped, and it is the responsibility of the breeder to ensure that the puppies are all chipped before they go on to their new homes. This role comes with responsibilities to the bitch and her puppies, as well as their new owners. If you have bought a sick puppy or have any concerns about a breeder or puppy seller, contact your Local Council. It is important to note that although the guidance relating to the licensing requirements is lengthy, it is similar to the 49-page model licensing conditions which have long been in use by local authorities. Depreciating a Bitch Dog breeders - You are entitled to certain deductions that many others are not qualified for. These include Dog Breeding, Dog and Cat Boarding, Selling Animals as Pets, Hiring out Horses and Keeping or Training Animals for Exhibition. In that case, you could claim capital allowances on the cost of buying the dog and maintenance costs for the dog - such as feeding and vets' bills - are tax-deductible expenses. Is working from home the future of accountancy? Where the working dog is an asset used in the business, the ongoing costs of feed and vets bills are allowable and any VAT costs can be recovered if the business is VAT … 11. A person shall not operate a large-scale dog breeding kennel unless the large-scale dog breeding kennel is registered with the department. Be aware of online ads. No changes to existing breeding regulations are currently due to be made in Northern Ireland, Wales and Scotland. What we must consider. There is no such thing as a “responsible” breeder, because for every puppy or kitten who is produced by any breeder, an animal awaiting adoption at an animal shelter loses his or her chance at finding a home—and will be euthanized.. In addition, such sales are subject to retailing B&O tax. The rules apply to anyone who is: 1. breeding three or more litters of puppies in any 12-month period (unless they don’t sell any of the puppies) 2. breeding dogs and advertising a business of selling dogs. fewer than three litters per year) and sell them without making a profit” are deemed to be out of the scope of licensing. But what about the cost of the bitch and the food and care she has received since being acquired (a few years ago). The expenses of whelping a litter of puppies for sale can be substantial, though. one unannounced visit within 24-month period, Min. Those at the other end of the spectrum will only receive a one-year licence and will pay a higher licence fee and will be inspected with greater frequency. The amount differs between municipalities; for example in The Hague it is €112.80 for the first dog, €176.76 for the second one, and €224.16 for the third one. This income is If you make a profit you pay tax on it. A friend of mine has asked if he should declare the proceeds of sale (£4.5K) of a litter of thoroughbred puppies on his tax return and pay tax on them. Find puppies bred with love and care. If the proceeds are taxable, I assume that the puppy food will be allowable as an expense. Change in litter threshold The biggest change to the regulations was the reduction of the […] Subsidised neutering Please note, the Dogs Trust neutering scheme now only operates in Northern Ireland. Breeders kill shelter animals’ chance to have a life. Indeed, dog breeding and being a dog breeder comes with a price. Wasting ChattelI agree with Josie - they fall under CGT - and as wasting chattels they are exempt from CGT. Defra has now made it clear that the “£1,000 trading income as referred to in the guidance documents should be used as an indicator and not a ceiling, as someone with over £1,000 trading income may not be a commercial dog breeder or pet seller and they may not be making a profit”. A different type of licence is required for those who are selling puppies they have not bred themselves. If you really aren’t doing it as a … whether it should be expected the breeder will maintain their standards for the duration of their licence period. Professional Dog Breeders. There are also a number of ‘higher standards’ that will enable breeders to obtain a better star rating with the associated benefits. Most dog breeders will end up selling their puppies to people in their area. This £1,000 trading income is a tax threshold. I can't imagine HMRC being very keen on treating this as a trade since there are just a string of losses. Please note that due to the current lockdown restrictions, the processing of postal applications will be severely impacted due to the closure of our offices and we would request that you do not send any postal applications to us. No other dogs are kept. If there are no law the regulates the activities of dog breeders, there is the likelihood that some dog breeders would want to try out some stuffs – they may want to cross breed dogs with other wild or domestic animals. when do i have to declare it to the tax man UK! Explore our AccountingWEB Live Shows and Episodes, View our 2020 Accounting Excellence Firm Awards Finalists. Before somebody gets involved with breeding dogs, they tend to do their research in order to assess a rough estimate of how much does running a kennel cost. Hobby?HMRC's Business Economic Notes on the pet trade (BEN14) holds out the possibility that sale of offspring may be treated as a hobby rather than a trade. As your dog breeding is only a hobby i'd say that no, you don't have to pay tax, i'm not sure your making enough money to pay it anyway. This is why it has become standard that dog breeding is not considered a business, it is a hobby. The Animal Welfare Act (2006) in England is about to undergo some fairly dramatic changes, to tighten up the laws surrounding the breeding and selling of puppies for profit and to close a number of loopholes … one unannounced visit within 12-month period, Min. For illustrative purposes, let’s consider a dog breeder who has two litters producing four puppies. Fortunately (for him) there were no vet fees as his partner is a vet and performed her services for free. If the (net) proceeds are taxable is it to be "other income" or "trading income". Microchipping can cost anything from £10-£25 per dog, and so can soon work out costly! Defra’s guidance advises breeders on the steps they will need to take to achieve a five-star rating and be awarded a three-year licence. For more information, visit our destinationtax.dor.wa.gov. However, what is different is that the updated requirements will be linked to a star rating system which should be better for responsible breeders. If you have a license – it’s treated just as a regular business. Deducting Sales Tax Instead of Income Tax The problem arises for dog breeders that in order to be considered a business you should show a profit at least 2 of every 5 years. If you treat your dog breeding as a business, then you are required to register with the local council and obtain a licence. 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