HMRC’s Hidden Economy team are presently contacting dog breeders in receipt of income from the sale of dogs and challenging whether such income should have been declared to HMRC. This specialist team investigate individuals who they believe have received taxable income but not declared this.
From the individuals contacted, it is clear that HMRC has amassed intelligence from third parties, such as pet insurers, to identify dog breeders that it suspects are trading. If HMRC believe income from dog breeding should have been notified and declared to HMRC and has not, then significant potential penalties could be charged by HMRC. In extreme cases, criminal proceedings could be commenced.
What to do next
Our Tax Investigations & Dispute Resolutions team can review your position, make representations on your behalf to HMRC and ultimately minimise your exposure to potential unnecessary tax, interest and penalties.
If our review shows that the dog breeding activities are nothing more than a side-line or hobby conducted around your main employment or self-employment duties we can robustly defend this position with HMRC and ensure that the enquiry is brought to a swift conclusion.
For example, we recently successfully represented a client in this position where with only one letter to HMRC we managed to get the enquiry closed.
Request a callback or meeting
If you'd like us to give you a call , fill in your details below and we'll email to arrange a good time to speak to our Head of Tax investigations team, Mark Taylor. All communications are in the strictest confidence.