Carcass Sales and Income Tax

[Cranborne]

I'm not a professional stalker but shoot sufficient deer to sell maybe 20 carcasses (mainly roe) a year to a game dealer. The rest are processed with the venison given to landowners, friends etc.
I declare the carcass money on my tax return, but can I set costs against this income? Fuel, ammunition and other consumables mean that I am making a loss in reality.

 

[VSS]

Yes.

 

[75]

Yes. Many of us do but be careful as HMRC do try and pick up on folk just offsetting costs of a hobby

 

[HonestJohn]

Careful. It’s like having a £20k Pa membership to Wentworth and then offsetting it because you sell recovered lake balls from the pond at the 18th.

 

[VSS]

HMRC can't have their cake and eat it!
If they want us to declare income, they've got to expect us to offset costs, whether it's a hobby or not!
All of my shooting costs are offset as business expenses, and I reclaim VAT as well.

 

[HonestJohn]

HMRC can't have their cake and eat it!
If they want us to declare income, they've got to expect us to offset costs, whether it's a hobby or not!
All of my shooting costs are offset as business expenses, and I reclaim VAT as well.

So if you had a £10k lease and made £2k Pa in venison sales and spent £3k in fuel and overnight stays? Not sure they’d buy it is my concern

 

[W1LL]

Trading Allowance - TaxAid

The trading allowance is an allowance that applies to individuals (not those in a partnership), that exempts £1000 of gross income from National Insurance or Income tax. This is applied to your income before any expenses are deducted. The exemption is automatic and if your self-employed income...

taxaid.org.uk

 

[timbrayford]

HMRC can't have their cake and eat it!
If they want us to declare income, they've got to expect us to offset costs, whether it's a hobby or not!
All of my shooting costs are offset as business expenses, and I reclaim VAT as well.

HMRC Guidance: The wholly and exclusively rule is HMRC's fundamental test for determining which business expenses you can claim as tax-deductible. To be eligible, an expense must be incurred entirely and solely for the purposes of running your trade, profession, or business, with no personal benefit or motive attached.
Don't be caught out by an HMRC investigation, if they decide that you've incorrectly claimed expenses they have the power to:-
1. Claim back what they believe is underpaid tax
2. Add interest @ 8%
3. Impose 100% penalties
4. Back date it however many years they see fit
You may appeal to a tax tribunal but unlike criminal law where the presumption is one of innocence until proved otherwise, with an adverse tax assessment the onus is on the taxpayer to prove that HMRC are wrong

 

[Essexsussex]

Worth looking at the trading exemption that hmrc offer. Don’t know how many carcasses the OP is selling but it may cover it.

 

[Essexsussex]

Trading Allowance - TaxAid

The trading allowance is an allowance that applies to individuals (not those in a partnership), that exempts £1000 of gross income from National Insurance or Income tax. This is applied to your income before any expenses are deducted. The exemption is automatic and if your self-employed income...

taxaid.org.uk

This one

Tax-free allowances on property and trading income

Find out about annual tax-free allowances for property or trading income and if you qualify.

www.gov.uk

 

[timbrayford]

Worth looking at the trading exemption that hmrc offer. Don’t know how many carcasses the OP is selling but it may cover it.

Under £1k

 

[Cranborne]

Thanks for all the replies. Approximately 20 roe carcasses per annum so significantly below the £1k threshold at current rates.

 

[Taff]

For 30 yrs I never informed them, and may or may not have put a lot more through than you. Never heard a word from them.

 

[timbrayford]

For 30 yrs I never informed them, and may or may not have put a lot more through than you. Never heard a word from them.

Yet!

 

[NullMac]

Another reason not to sell carcasses. You get **** all anyway then have a tax investigation. No thanks. Feed them to the dog, it’s cheaper than biscuits

 

[shakey jake]

Do you really think hmrc has the spare time and effort to look at 20 roe deer a year?
At £50 a carcase that 1k. How much of a fiddle can you do?
What can they get back?
How much would that cost to find out?
If your sole income was from 20 roe deer and you had a couple if houses and a few cars and some how made a lose on trading, start to worry.
But i would up my sell and not worry

 

[Rake Aboot]

They can **** right off if they think they are getting any of my rabbit money.
The hit me at over 60% last year, I pay more tax than Amazon, so my few quid is mine.

No way I’d declare any hobby income.

I’ll add to that, any shoot not paying beaters / loaders in cash is history as well.

 

[Bo Diddley]

Some years ago, a lass who worked for HMRC was on our informal Go-Karting team. I asked her about the chances of getting an inspection/audit as a self-employed/sole trader, she laughed and said not a chance unless you are completely living beyond your means and some member of the public flags it up anonymously.
I can't see that shooting 20 roe deers a year is going to get HMRC salivating.

 

[shakey jake]

You can legally earn 1k above your normal income with declaring.

 

[homer]

Do you really think hmrc has the spare time and effort to look at 20 roe deer a year?
At £50 a carcase that 1k. How much of a fiddle can you do?
What can they get back?
How much would that cost to find out?
If your sole income was from 20 roe deer and you had a couple if houses and a few cars and some how made a lose on trading, start to worry.
But i would up my sell and not worry

Think you can earn a grand a year anyway without having to pay tax.