Paw-fect Tax Savings!
Did you know your canine could be a K9?!
Dogs can be a great way to save most farmers and other businesses tax!
Generally, farm animals take the form of cattle, sheep or chickens, which would either be recorded in farmers’ accounts as stock or a capital asset. To be classed as a capital asset, the animal would be kept for what it produces while it is still alive, for example milk, wool or eggs. With this in mind, how would you account for your dog in your business and where are the tax savings?
Most dogs kept by farmers are working dogs, such as a sheepdog , which work on the farm but do not ‘produce’ anything, as such. These dogs are recorded as capital assets and are eligible for capital allowances which reduce your tax bill. There are additional tax savings to be made though, as expenses for caring and loving your dog, such as food, veterinary bills, insurance, etc. are all tax deductable.
In many cases, the working dog has a number of job titles on the farm, which could be extended to guard dog for the home, or the family pet. If this is the case, part, or maybe all of the costs related to the dog may be disallowed for tax. This is an area which the accountants at Green & Co are well equipped to help you with.
For additional information and advice on introducing animals to your business, please contact Green & Co on 01633 871122.
Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.