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The Ultimate Guide to Accounting for Pet Professionals in the UK

Pet professionals, including breeders, groomers, walkers and trainers, operate unique businesses with particular challenges and opportunities. This guide provides an overview of the essential accounting and tax considerations to help manage finances, maximise profits and ensure compliance with HMRC requirements.

Structure for pet business

Before diving into accounting specifics, it’s important to choose the correct business structure. In the UK, the most common business structures for pet professionals are:

Understanding Your Business Structure

Sole trader pet professional

SOLE TRADER

This is the simplest form of business. You are personally responsible for the debts and liabilities of the business, but it offers greater flexibility and fewer regulatory burdens.

Partnership accounting for pet professionals

PARTNERSHIP

If you run your business with someone else a partnership may be suitable for you. As for a sole trader, partners share responsibility for the finances of the business.

Limited company accounts for pet professionals

LIMITED COMPANY

A limited company provides limited liability, which protects your personal assets. There are greater administrative requirements but it offers more options for tax planning.

Choosing the right structure for your business can affect how much tax you will pay, your level of financial risk, your ability to raise funds and your record keeping requirements, so it's important to get this right from the start. If you need assistance in the best way to structure your business you should seek the advice of a qualified accountant.

Registering for Taxes

Once you've decided on your business structure you need to register with HMRC.

Self-Assessment

Sole traders and partners need to register with HMRC to submit a personal tax return. You will pay tax and national insurance on your business profits.

Corporation Tax

Limited companies pay corporation tax on any profits. Most businesses register for corporation tax on incorporation but if not need to have done so within three months.

VAT

No matter which structure you choose for your business, if your turnover exceeds £90,000 in a twelve month period you must register with HMRC for VAT.

Maintaining Financial Records

Good record keeping is essential for all pet professional, regardless of your business size or structure. You need to track your income, expenses and profits accurately to ensure proper tax reporting. HMRC require businesses to keep records for at least six years from the end of the last tax year, including any digital records.

Sale invoices for pet professionals

Sales Invoices

If you are registered for VAT you must raise an invoice for each sale that you make, even if the customer doesn't want a copy of the invoice. If you are not VAT registered you can simply record each sale that you make, detailing the date of the sale, the customer name, the service or product supplied and the amount.

Purchase invoices for pet professionals

Purchase Invoices

You must keep a copy of all purchase invoices and receipts for goods and services purchased, either in paper format or digital format. If you are VAT registered you should ensure that invoices are addressed to the VAT registered entity (i.e. the limited company or business) and not to you personally.

Travel expenses for pet professionals

Mileage Log

If you use your own vehicle for business travel, you can claim a mileage allowance based on the total miles that you travel during the year. To make this claim, you need to record the date of each journey, the postcode of your destination and the total miles travelled. You cannot claim mileage to a permanent place of work such as rented premises.

Bookkeeping for pet professionals

Bank Statements

No matter which business structure you choose, you should have a dedicated bank account for your business, separate from your own personal account. A limited company is a separate legal entity with its own assets, so it's important to withdraw money in the correct way, and not to use the business account for personal spending.

Understanding Allowable Business Expenses

One of the key aspects of running a pet-based business is knowing which expenses can be claimed to reduce your tax bill. These are known as 'allowable expenses'. The most common allowable expenses for pet professionals are:

Expenses for pet professionals

Supplies & Equipment

Scissors, clippers and brushes

Pet food and treats

Leads, collars and harnesses

Kennels and cages

Pet shampoo and conditioner

Cleaning supplies

Toys

Litter and litter boxes

Water and food bowls

Aprons, gloves and masks

Heating and cooling pads

Flea treatments, first aid supplies and medicines

Clickers, whistles and training pads

Portable grooming tables

Pet handling equipment and carriers

Portable playpens and exercise areas

Dog washing stations​

Premises Costs

Rent for business premises (such as kennels or salon)

Electricity, water and gas

Business rates (where applicable)

Property insurance

Repairs and maintenance costs

Security systems

Cleaning of business premises

Waste disposal services

Pest control services

Lease renewal fees

Legal fees in relation to business property

Property management fees

Health and safety assessments and compliance costs

Fire safety equipment

What expenses can a dog groomer claim?
What travel expenses can a dog walker claim?

Travel Expenses

For personal vehicles:

Mileage for business related journeys

​

For business vehicles:

Petrol, diesel or electric charging costs

Maintenance and repairs

Road tax

Vehicle insurance

Breakdown cover

Vehicle leasing costs

​

Other travel:

Public transport costs for business journeys

Taxi costs for business journeys

​Parking costs for business trips

Tolls and congestion charges

Marketing & Advertising

Website design & development costs

Web hosting & domain fees

Google & social media advertising

Printed business cards, brochures & leaflets

Social media management tools

Logo & branding design services

SEO services

Promotional merchandise

Branded signs & banners

Newspaper & magazine adverts

Decals & wraps for business vehicles

Trade show attendance costs

Photography services for promotional material

Email marketing platform fees

Pet industry directory listings

Sponsored posts with influencers & pet bloggers

Referral programs used to generate new business

​

What can I claim as a dog boarder?
What training costs can a pet professional claim?

Training & Certification

Pet grooming courses

Animal behaviour & training programs

First aid courses for pets

Animal care or welfare certifications

Canine or feline nutrition courses

God walking certification programs

Advanced grooming techniques training

CPD courses for pet professionals

Pet handling & restraint courses

Veterinary assistant courses

Agility training workshops

Pet CPR & emergency care certifications

Small animal care & handling training

Animal welfare regulation training

Puppy socialisation workshops

Industry specific online training courses

Business management courses

Membership fees for professional pet care organisations

Travel expenses for attending training courses

Insurance

Public liability (injury or damage to third parties

Professional indemnity (claims of negligence or mistakes)

Employers liability for any staff

Business property for premises

Contents for business equipment

Pet insurance for animals under your care

Commercial vehicle insurance

Key person insurance

Product liability insurance (if you sell pet related goods)

Cyber insurance (covering data breaches & attacks)

Event insurance for exhibitions & shows

Travel insurance for transporting animals

Legal expense insurance in case of disputes

Mobile phone insurance

Allowable expenses for a dog groomer
Allowable expenses for a dog walker

Office Costs

Pens, paper, ink & other stationery

Business software subscriptions

Accountancy fees

Desks, chairs, filing cabinets & office furniture

IT support services

Computer equipment

Personalised stationery

Postage & courier costs

Office security systems

Business magazine subscriptions

Cloud storage subscriptions

Online meeting tool subscriptions

Office heating & cooling equipment

Coffee machines & kitchen supplies

Data backup services

Non-allowable expenses include any personal or household expenses, client entertainment, fines or penalties.

Using Accounting Software

Accounting software can simplify managing your finances. Some benefits include automating invoicing, tracking expenses and generating financial reports. If your turnover exceeds £90,000 you will need accounting software to comply with Making Tax Digital (MTD for VAT), which requires businesses to keep digital records and submit their VAT returns using compatible software. Some popular software for pet professionals includes:

Tax for pet professionals

Handling Income Tax and National Insurance

Sole traders and partners are responsible for paying income tax and national insurance on their profits. Tax is payable based on how much of your income exceeds your tax-free Personal Allowance and which tax band your income falls into.

 

You can find out about the current rates and allowances on the HMRC website here.

 

Class 2 national insurance is a flat rate weekly rate but class 4 national insurance is a percentage of your profits over a certain threshold.

 

You can find out about the current rates and allowances on the HMRC website here.

​

Limited companies pay corporation tax on their taxable profits.

​

You can find out about the current corporation tax rates on the HMRC website here.

​

The most tax efficient way for a director to withdraw monies from a limited company is usually by using a combination of salary and dividends, although this depends on other sources of income.

National insurance for pet professionals

Dealing with VAT

If your turnover exceeds £90,000 in any twelve month period you must register with HMRC for VAT. This means that you will need to charge VAT on all of your sales, but as a pet professional, you can reclaim VAT on any expenses where you have a valid VAT receipt or invoice. There are different VAT schemes available that may suit your business, such as:

VAT for dog walkers

Standard

VAT is paid to HMRC based on the date of your sale invoices and VAT is reclaimed from HMRC based on the date of your purchase invoices.

VAT for dog groomers

Flat Rate

VAT is paid to HMRC based on a flat rate percentage of your sales. This simplifies VAT reporting but you cannot reclaim VAT on expenses.

VAT for pet sitters

Cash

VAT is paid to HMRC based on the date that income is received and reclaimed from HMRC based on the payment date of your expenses.

Payroll and PAYE

If you hire staff to support your business, such as walkers, groomers or assistants, you will need to set up a Pay As You Earn (PAYE) scheme with HMRC to manage employee tax, national insurance and pension contributions. Each time you pay your employees, you will need to report any deductions made to HMRC and your pension provider.

Income tax for pet professionals

Income Tax

Paid by the employee and deducted at source

Payroll for dog walkers

National Insurance

Employee NI is deducted at source. Employers pay NI on earnings over a weekly threshold.

Payroll for pet professionals

Pensions

Employee contributions are deducted at source. Employers make contributions at a set percentage.

Self-Assessment Filing Dates and Deadlines

5th October


If you haven't filed before, register for self-assessment following the tax year end.
 

31st October


If you file paper returns, ensure that HMRC have received them by this date.
 

31st January

Deadline for online submissions. Tax due for the previous tax year plus the first payment on account (where applicable) must be paid.

31st July


The second payment on account (where applicable) must be settled by this date.
 

Professional Support: Hiring an Accountant

Pet professionals can really benefit from hiring an accountant to support their business, especially as their business grows. An accountant can help with:

Bookkeeping for dog groomers

Bookkeeping

Whether you are just starting out or running an established pet business, understanding the basics of accounting is essential for long term success for your business. From registering for the right taxes to keeping accurate financial records, managing cash flow and planning for tax deadlines, staying on top of your finances can save time, money and stress.

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