Let’s be honest: you started a dog walking business because you love pups, the fresh air, and being your own boss—not because you wanted to spend your weekends wrestling with spreadsheets.
Working for yourself is incredibly rewarding. You choose your clients, set your own route, and call the shots. But unlike a regular 9-to-5, no one is taking tax out of your paycheck before it hits your bank account. That responsibility sits with you.
If the thought of HMRC makes you want to hide under the covers, don’t worry! At Taxlab, we specialise in helping self-employed animal lovers stay on the right side of the taxman. Here is everything you need to know to keep your business wagging.
🕒 When Do I Need to Tell HMRC?
You don’t need to register the second you get your first client. However, once your gross income (that’s total money coming in before you spend a penny on treats or fuel) hits £1,000 in a tax year (6th April to 5th April), you’re officially a business in the eyes of HMRC.
- The Deadline: You must register by 5th October after the end of that tax year.
- Limited Companies: If you’ve set up a formal Limited Company, you’ll need to register for Self Assessment as a Director, as you’ll need to report any money you take out of the business.
💸 The “Magic” of Allowable Expenses
The best way to lower your tax bill is to make sure you’re claiming for everything you’re allowed to. You only pay tax on your profits, so deducting business costs is key!
What you CAN claim:
- The Basics: Leads, whistles, harnesses, cages, poop bags, and treats.
- Getting Around: Fuel, insurance, and parking for pet pickups.
- Looking the Part: Branded hoodies or weather-proof gear (PPE).
- Running the Office: A % of your home bills if you do your admin at the kitchen table, plus software like Freeagent.
- Professional Help: Accountancy fees, insurance, and marketing.
What you CAN’T claim:
- Your daily lunch (unless you’re working away overnight).
- Commuting from your house to your “usual” workplace.
- Parking fines or speeding tickets (HMRC doesn’t pay for mistakes!).
- Normal everyday clothes that aren’t a uniform.
📉 What If I Didn’t Make a Profit?
Starting up is expensive. If your costs were higher than your income, you’ve made a financial loss.
Sole Traders: You won’t owe tax, and you can carry that loss forward to knock money off next year’s tax bill. You might even get a rebate if you have another job!
Limited Companies: You can carry losses forward or even “back” one year to get a refund on previously paid Corporation Tax.
🗓️ Dates You Can’t Forget
Missing a deadline means automatic fines, so mark these in your calendar:
- 31st January: The “Big One.” This is the deadline to file your return online and pay your tax.
- 31st July: If you owe more than £1,000, you’ll likely have to make a “Payment on Account” (half of next year’s estimated bill) by this date.
- Limited Company Deadlines: You also have to file accounts 9 months after your year-end and a “Confirmation Statement” once a year.
🗄️ Pro-Tips for Stress-Free Accounts
1. Separate the Cash: Open a business bank account. It makes life 100x easier when you aren’t scrolling past your grocery shopping to find a receipt for dog treats. (It’s a legal requirement for Limited Companies!)
2. Keep Everything: You need to keep receipts and records for **6 years**. Digital copies (Google Drive or Freeagent) are your best friend here.
3. The £90k Rule: If your sales hit £90,000 in a year, you must register for VAT.
🤝 Do I Really Need an Accountant?
You don’t legally need one, but having Taxlab in your corner is a game-changer. We have a keen eye for spotting expenses you might have missed, ensuring you’re compliant with HMRC and Companies House, and most importantly saving you money in the long run.