HMRC One to Many letter – Dog and Cat Breeders Downstream

HMRC have advised us that they are currently undertaking a One to Many letter campaign directed at dog and cat breeders. This campaign is addressing the risk presented by animal breeders failing to declare income from the breeding and sale of animals. Some people have also failed to register for Income Tax Self-Assessment (ITSA). There are two different letters being sent to the population to test different communication methods. A copy of each letter is provided below.

The letters explain that the person may need to make a voluntary disclosure. The CIOT has produced guidance for members assisting clients who may have additional tax liabilities to disclose to HMRC – see Assisting clients with making disclosures to HMRC - guidance for CIOT members. It explains the different processes through which taxpayers can make disclosures and explains that members should choose the disclosure service which is most appropriate for their client’s circumstances given all the issues to be corrected and the reason(s) why the inaccuracy(ies) occurred. 

OTM letter - Tell us about your income from the breeding or sale of animals
OTM letter - You may need to declare income from the breeding or sale of animals