HMRC are launching another one-to-many campaign aimed at dog and cat breeders. Their particular concern is that many animal breeders have failed to register for self-assessment.
Animal breeders have come under HMRC's scrutiny as the Revenue believes that a large number have failed to register for Self Assessment.
There are two versions of the one-to-many letter being issued.
- The first says "We believe that you haven't told us about some or all of this income" and invites the recipient to make a Voluntary Disclosure. The letter advises HMRC will monitor the response to the letter.
- The second says “We believe you may not have told us about some or all of this income." It continues with information on how to make a Voluntary Disclosure.
It is not clear how much tax HMRC anticipates being at stake but it is understood their information has come from a wide range of sources including pet insurers, the RSPCA and online trading sites along with social media. Given the surge in pet ownership during the pandemic, HMRC's interest is understandable.
Taxpayers need to respond to the letter to minimise any Penalties that arise.
An individual who has Failed to Notify Chargeability to Tax also faces the prospect of tax assessments being issued for the previous 20 years. In these cases, it is essential to take professional advice on making a disclosure to HMRC and mitigating the chances of further tax penalties.
Useful guides on this topic
Register for Self Assessment
How to register for Self Assessment. If you need to file a Self Assessment tax return and you have not previously registered for tax and you also need to pay your Income Tax liability (both of which should be done by 31 January), you need to register for Self Assessment and obtain your own Unique Tax Reference code (UTR).
Penalties: SA late filing, payment, notification & error
Self Assessment (SA) tax penalties: what penalties are due for outstanding tax returns? What penalties are due for late payment? Are there special rules delays affecting victims of the Post Office Horizon scandal and due to Covid-19.
HMRC one-to-many letters on Agents' responsibilities
What do you do if you receive one of HMRC's 'One to Many' letters to agents? The letters should not be ignored. We have put together a step-by-step guide to handling HMRC's one-to-many agent letters and understanding your responsibilities as an agent.
Failure to notify chargeability to tax
What is failure to notify chargeability to tax? What happens if you fail to notify HMRC about your taxes? What penalties apply for failing to notify HMRC that you have a tax liability?
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