Someone told me that if i start to make a profit on breeding my dog, then i have to pay tax! is this true and if it is how much do i have to pay?????????

Breeding dogs is like anything else - any profit is added to your annual income and taxed at the relevant rate. But don't worry - most people who breed dogs find it costs so much to breed and rear a healthy litter that profit doesn't come into it!

Yes - you do - profit equals income which is liable for tax - so, if you are a standard taxpayer, and already pay tax on earnings udner PAYE, you will have to pay 22 per cent of your profit (note: PROFIT - take away the costs - health checks for your bitch, veterinary care, additional food, stud fees, costs of heating whelping pen, cost of whelping pen, additional wormer, puppy food, Kennel Club registration fees etc). You cannot take into account costs of your own time staying up all night keeping a check on your bitch and puppies. If however you have made a profit then yes - Gordon Brown wants 22 per cent of it!!

Regards

Margot

Well put, Margot!

(You can add pups' specialist health checks {for hereditary conditions}, puppy's food bowls/toys etc, and of course any advertising costs.)

Also if you are looking at profit it would be fair to reckon in the cost of keeping the bitch to breeding age, as this would equate investment into Plant and Machinery so to speak, lol.

Another way to look at it, is if anyone wants to look at your breeding from your bitch as a commercial enterprise then I would also think the amount it will cost you to keep her to 12 years of age will be a lot more than any profit on two or theree litters in her lifetime. Few people (except puppy farmers) would take more than four litters from any bitch.

My oldest bitch has had two litters, is now 11 years of age, and the profit on the two litters (just the costs of the litter not keeping Mum) £600, so she has cost a lot more than £50 a year to maintain.

Ah but the taxman may say you have no need to keep redundant plant (i.e.after breeding age):). Seriously though, hands up those who actually declare to the taxman when they breed one litter every 2 or 3 years say even if they list all their expenses too to cancel out to show no profit or do you just tot it up in your head and say Nah nothing to declare :)

Hubby would be classified as Plant and Machinery - but I think that he is fully depreciated now :D

(There is no problem keeping things that are fully written off ! )

Daisy

Ahh poor Hubby :p:D