
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.

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
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
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
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.

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
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.

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.

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:

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


Travel Expenses
For personal vehicles:
Mileage for business related journeys
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For business vehicles:
Petrol, diesel or electric charging costs
Maintenance and repairs
Road tax
Vehicle insurance
Breakdown cover
Vehicle leasing costs
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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
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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


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:

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.
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Limited companies pay corporation tax on their taxable profits.
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You can find out about the current corporation tax rates on the HMRC website here.
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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.

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:
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
Paid by the employee and deducted at source

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

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:
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.