Are Proceeds from breeding puppies taxable?
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.
The bitch is a pet. No other dogs are kept. Fortunately (for him) there were no vet fees as his partner is a vet and performed her services for free.
If the proceeds are taxable, I assume that the puppy food will be allowable as an expense. But what about the cost of the bitch and the food and care she has received since being acquired (a few years ago). She would not have been able to produce the puppies if she hadn't been looked after since acquisition!
If the (net) proceeds are taxable is it to be "other income" or "trading income". If the latter should my friend have registered with HMRC and is he now liable to a £100 penalty?
If it is taxable, then there must be a lot of people out there evading tax!
- Tier One Tribunal 53 5
- Pooled cars legislation unfairly punitive 45 2
- Where do Balance Sheet Gains get recognised in CT600? 871 41
- New starter not showing on RTI FPS submission (MoneySoft payroll) 243 5
- Is cloud accounting software all just pie in the sky 791 25
- Working in Iraq, how to treat the income 119 2
- Another transfer of property 110 2
- VAT on non-denominated postage 204 7
- Taxi Plate & Car 83 1
- How can i allow my clients to digitally sign? 564 11
- LEL and PAYE registration 83 1
- Employmnet Allowance 2015/2016 158 2
- Tax refunds for 2014/15 176 1
- Tax relief for networking day out? 554 14
- SA316s 218 3
- Swiching tax 543 15
- Proposal to strike off...... 531 10
- Can I recharge Car loan interest 389 11
- Start-up cost recognition 126 1
- Lunches 310 3
- Construction CIS LLP Company 612
- Services via intermediaries and new HMRC reporting requirements 594
- LIVE: Budget aftermath webinar 389
- Pensions Regulator 357
- NIC contribution on unremitted income 293
- Using the correct forms 268
- RTI - duplicate employee record 263
- SA penalty proposals 258
- Accelerated payment notices 238
- How hard is it to reduce a code? 234