In autumn 2024, HMRC sent letters to cat and dog breeders. These calls for action followed information the authorities had found on gross income earned of £1000 or more, on the sale of animals.
The full disclosure of this income to HMRC should have been made by 10 November 2024 with the letter reference. After that date, 90 days were given to complete the details and pay anything owed.
Anyone receiving letters from HMRC should act within the time limits set out. Even when someone believes they have no undeclared income to disclose, it is important to communicate this to HMRC to avoid the possibility of penalties or further investigation.
How does HMRC know about your sources of income?
HMRC actively looks for evidence of undisclosed commercial activity. If it’s on social media, it can find it. Add to that the extensive information-gathering powers that mean it can access data from other government departments, online sales platforms, the Land Registry and DVLA to name a few.
HMRC does not send copies of these letters to us. Do contact us as a priority if you receive anything you would like support with. We should be pleased to help.
See also TAX AND THE SIDE HUSTLE I AUTUMN BUDGET 2024