My dog had a litter of pups in 2018 and I am a bit confused as to whether I need to pay tax. I don’t breed my dogs much and this is only the second litter. I need to know what exactly I can claim for. Can I claim for loss of income? Can I claim for all her food etc. leading up to her delivery? How far back can I go, as I’ve not claimed breeding costs before?

Arthur Weller replies:
Firstly, there is a £1,000 trading allowance whereby if the total receipts from all trades plus any miscellaneous income in the tax year are no more than £1,000, the allowance is given automatically in full so that no tax is payable and the income does not have to be declared. Secondly, even if you don’t fit into that category, any expenses that are wholly and exclusively attributable to your dog breeding are allowable. As long as the expenses directly relate to this dog breeding, you can go back as far as you need to.