[sillyewe]

Hey folks 

While I was listening to the radio the other day an advert about subitting tax return before the end of the month came on.  It then crossed my mind that I might need to do this for me small flock of sheep!

So basically I thought I would ask, do I need to complete a tax return for my flock of 12 sheep?  What does everyone else do? 

They do not make me a huge amount of money but do cover their own backs.  They are pretty much a hobby for me.

Thanks

[Jukes Mum]

If are making profit from your sheep.....please can you tell me how 

[bloomer]

Technically yes as you receive income from them (even if your costs are greater than your income)

 

[TheSmilingSheep]

I'm planning to submit a tax return - as a sole trader - for very modest income from sheep and pigs.  Costs will definitely exceed income, however, so there will be no tax to pay...

[sillyewe]

Ok looks like I will need to submit a tax return before end of month.  Will it matter that I didnt complete one for the last 2 years? Eeeek!

[sillyewe]

On another note....if my flock makes a loss, can this be offset against tax I pay from my full-time job?

Can you tell I have limited knowledge of the tax world!!

[hafod]

Yes. If u generate an income from it you should.Remember income is the amount you get in before taking off any costs/expenses so its irrelevant if u make a profit or a loss. When did u start keeping sheep? Yes losses can be offset against tax from employment

[hafod]

More accurately when did you first receive income from the sheep?

[Foobar]

Only if you are registered for tax?  There was a good article in Country Smallholding magazine a few years ago all about smallholdings and tax and what you could do before having to register for tax.


I don't. I probably only make a few hundred pounds a year.

[sillyewe]

Yes. If u generate an income from it you should.Remember income is the amount you get in before taking off any costs/expenses so its irrelevant if u make a profit or a loss. When did u start keeping sheep? Yes losses can be offset against tax from employment

Hi hafod.

I would have recieved my first 'income' from the sheep at end of 2012.

I did set up a seperate bank account at the time.

[sillyewe]

Thanks Foobar.  Im away to have a look about on the Country Smallholding website.

[shygirl]

Yes losses can be offset against tax from employment

does anyone know how to do this properly on a self-assessment? I do my own tax returns but always get stuck on this bit so end up not offsetting. any tips?

[sillyewe]

http://www.countrysmallholding.com/how-to-s/lifestyle/a_taxing_issue_1_3512140

nice atricle to read  thanks Foobar

[Deere]

That's an interesting read and certainly something I shall be looking further into, thanks for pointing it out.

 I work full time and started rearing a few cade lambs last spring, I now have nearly 40 ewes 

[hafod]

HMRC say you should register for tax by the 5 October after the end of the tax year you need to submit a return for. So if you started getting an income in December 2013,  you should register by 5 October 2014. I have always found HMRC very approachable if you want to ask questions