If you breed dogs or cats and you’ve just had a letter from HMRC, don’t panic, but don’t ignore it either. As part of their ongoing 2025 campaign, where HMRC targets animal breeders, they are on a mission to make sure they’re declaring all taxable income.
There are two types of letters being sent out. One says, “Tell us about your income” (because they already know you’ve been earning something), and the other says, “You may need to declare your income” (which is basically a polite nudge to come clean).
Either way, it’s time to take action if you’ve received a letter.
Why HMRC targets animal breeders
Breeding dogs and cats can be a serious business and a profitable one (just read our previous blog on the subject to see how much!). And as HMRC has noticed that not everyone who sells litters is declaring their earnings, they’ve launched a focused campaign to address this. In 2025, HMRC will target animal breeders to close the tax gap and collect what is owed.
This isn’t just about breeders making a few extra pounds. Some breeders are running full-on businesses without informing the taxman. HMRC’s message is clear: if you’re making money, you’re expected to pay your fair share.
On top of that, HMRC is using data from online advertising platforms, social media, and even microchip registrations to spot undeclared activity. So, if you think you’re invisible, think again.
What the HMRC letters actually mean
If you get the “tell us about your income” letter, HMRC already has some evidence that you’ve been breeding and selling animals. They’re essentially inviting you to declare your earnings before they take further action.
If you get the “you may need to declare your income” letter, it’s a softer warning. They suspect you might have undeclared income, but are giving you a chance to sort things out voluntarily.
In both cases, honesty is your best bet. Ignoring these letters could land you with penalties that are far worse than simply putting your hands up now.
| Received a letter? We can help you reply to HMRC and ensure your tax affairs are in good order – so get in touch. |
Don’t forget the wider “Hustle” campaign
HMRC’s move to target animal breeders is part of a wider plan called “Hustle”. This bigger campaign is designed to catch anyone making a second income without declaring it. It includes not just breeders, but also dog walkers, craft sellers, content creators, and anyone else earning more than £1000 a year on the side.
HMRC believes that around 65% of people with a side hustle are not declaring their earnings. If you’re one of them, it’s better to come forward now. Voluntary disclosure usually leads to much lighter penalties than if HMRC finds you first.
Another thing to be aware of: from 2024, digital platforms like Etsy, Airbnb, and eBay are required to share seller information with HMRC. So if you’ve been selling puppies, pet accessories, or anything else online, they could already have you on their radar.
| Not sure if this is you? We can help you work out if what you’re doing is taxable and, if so, tell the taxman…– so get in touch. |
What to do if you’ve had a letter (or think you might get one)
Get in touch with someone who knows how to deal with HMRC properly. We can help you understand what you need to declare, how much tax you might owe, and guide you through responding to the letter. If you’ve got undeclared income, it’s much better to sort it now while HMRC is still offering a chance to put things right.
If you’ve been earning more than £1000 a year from any side hustle, not just breeding, you should also get advice on whether you need to be declaring your income.
Remember, tax isn’t just about income. Depending on how you operate, you may also need to consider VAT registration or business rates…and a quick chat with us could save you a lot of stress later!
Get help today
HMRC targets animal breeders more aggressively, and the wider Hustle campaign is expanding. If you’ve had a letter, or even if you’re just worried you might get one, it’s time to act.
Get in touch with us today. We can help you get your tax affairs in good order before HMRC turns up the heat.
** Important note: if you suspect someone else of being an illegal puppy breeder or dealer, you can contact HMRC’s helpline on 0800 788 887 to report your concerns.
