I breed dogs, and i was wondering should I pay tax on the puppies i sell. If so how much tax?

Question

I breed dogs, and i was wondering should I pay tax on the puppies i sell. If so how much tax. when do i have to declare it to the tax man UK!!

I do not want to , just some guy who just wants to hurt me and my family has threatend to report me.. so i have to sort it out

it is not a buinses more of a hobby.. I sell about 14 dogs a year for £100.. tops that all depends if it all goes well etc..

14 litters is about 2 a year!

sorry 14 puppies are about 2 a year... not 14 litters, 14 puppies

Answer 1

dont worry about what anyone says if it is a hobby of yours you are more than entiteled to breed, and the money you get back is what you would pay for vets bills and the looking after of your welping *****.
But to be honest with you , you should already know all the info you need to about breeding dogs before you go into it!

Answer 2

I dont think you have too much to worry about. Do you have any other sources of Income? if you earn less than £5225 a year then you wont have any tax to pay anyways. If you earn over £5225 then you can look to pay 10% tax on the first £2230 after the £5225 then 22% on anything after the £2230.

ie

you earn say £15000 a year from a main job

£5225 is tax free
£2230 @ 10% = £223 in tax
£7545 @ 22% = £1659.90 in tax

if you sold 14 puppies at £100 a time you woul pay tax on £1400 @ 22% = £308

Also National Insurance would be paid at £2.20 a week as you would be classed as self employed

However, you also would need to take into account your expenditure, such as food, vet bills, toys, bedding, equipment (leads,collars, coats etc...) which can all be deducted from you income and thus reduce the amount actually taxable and it is unlikely you would make any if much profit.

Read through this http://www.hmrc.gov.uk/bens/ben14.htm

This is very helpful as explains what breeding is all about in the eyes of the revenue and you can always contact the Revenue direct saying you are looking at breeding puppies for non profit

Personally, I dont think you need to worry about the jerk threatening to report you as long as you can prove that it isnt for profit and I think that at £100 a pup its hardly a lucrative business to be in and therefore hard to prove that you are actively trading to make money.

I assume they are not show or pedigree dogs

Answer 3

I can't tell you about the UK but in the US you are suppose to if you have 2 litters or more per year (dogs or cats, purebred or mix).You need to charge and pay whatever the going tax rate is in your state and pay it in to the state either once or twice yearly. It doesn't matter if you do it as a business or a hobby. You also need to keep careful records on all money spent in regards to the breeding, caring for dogs/cats, puppies/kittens, etc. You also need to file a schedule "C" form with the IRS every year when you file your income taxes.

Answer 4

Thats a nasty person you have trying to hurt you and your family, isn't life hard enough without a*******s like that sticking their oar in? Makes me angry. 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. The best advice i can give you is to tell you to ring a legal advice line ( you will find them in the Yellow Pages or similar ) and explain your dilema. Most of these organisations do not ask for your name and address ( i wouldn't give it if they did ) and do not charge you for the advice given. Alternatively, you can get this info from either the internet or from your local library under tax rules and exemptions. I wish you luck , you sound like a nice bloke. I hope your ' grass ' has the tables turned on him one day!

Answer 5

How many litters is that? You could be in danger of needing a breeding license too. I think it's probably an idea to speak to someone at the council if you think you may be doing something wrong. At least then you've gone to them and not the other way around.

Answer 6

I woulds say if you are doing this on a minor side line level then I wouldn't worry much about it but keep records of animals you have sold and for how much should IRS audit which isn't likely. If on a major income level you would add the sales to your yearly gross annual income and pay according to the total income. If you feel you would fall in this catagory then pass the charge of your local sales tax on to the buyer

Answer 7

If you are operating the breeding as a business, then yes you should. As for how much, I don't know, contact a tax professional who can guide you. I'd imagine putting aside 20% would be good.... good luck and best wishes.

Answer 8

i believe that if you sell them for over a certain amount each then you have to claim the income, with that being said...if you claim the income then be sure to keep all receipts so you can claim those too!! Food, shots, if you have to buy crates..ANYTHING that has to do with those puppies keep it. I'd check on the amount though...

Answer 9

You should disclose any income you make to the Inland Revenue.

Answer 10

The Citizens Advice should be able to tell you, they should also be able to tell you how to deal with your blackmailing friend.