Connect with us

Hi, what are you looking for?

Investing

Clarkson’s Farm: Can you claim 130% of the cost of buying your sheepdog?

Clarkson Farm

Clarkson’s Farm, Jeremy Clarkson’s new Amazon Prime series has highlighted not only the importance of working dogs on a farm but also the cost of these hard-working animals.

He found out, to his horror, that a sheepdog can set you back a whopping £20,000!

So can he save money by claiming tax relief on buying a sheepdog and does it fall under the government’s new 130% Super Deduction on plant & machinery costs?

What is the super-deduction?

The government recently announced the 130% super-deduction on plant and machinery.

Certain animals, for example working sheep dogs, can qualify as plant and machinery.

This could mean that you can claim 130% of the cost of buying your dog.

So does my sheepdog qualify for Super-deduction?

Whilst we may think of dogs as our cute companions, there are those dogs who have a vital role to play in business.

Sheep

Dogs such as guard dogs and sheep dogs are business assets, and so the costs of these animals can be claimed against the business income.

As these dogs are expected to live long lives, they are classified as “Plant and Equipment”, meaning that they get the same tax treatment as tractors or road rollers.

According to the government, the super-deduction applies to new plant and machinery that ordinarily qualifies as “main rate” items. This includes our fluffy canine friends.

Whilst HMRC have made exclusions from the “main rate” for the super-deduction, they have only mentioned leased equipment and certain properties, making no mention of dogs.

This could mean that your sheepdog now gets tax relief at 130%, which is equal to 24.7% of the total cost of purchasing the dog.

Whilst treating dogs as “Equipment” might seem alien to some, it is a well-established tax allowance and a generous tax relief.

However, it should be noted that with this being such a niche section of taxation.

With the newly introduced super-deduction scheme and AIA, there are some very valuable tax relief awardable that can trigger substantial tax refunds, that can be backdated by up to 2 years.

Read more:
Clarkson’s Farm: Can you claim 130% of the cost of buying your sheepdog?

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

WASHINGTON D.C. — The United States is seeking to form a coalition of countries to drive negotiations on a global plastic pollution treaty, weeks...

Economy

By Diego Gabriel C. Robles  THE WORLD BANK (WB) upgraded its growth forecast for the Philippines for this year and 2023, citing an “accommodative”...

Economy

THE PHILIPPINE auto industry’s sales recovery will likely be derailed if a measure reimposing excise taxes on pickup trucks is signed into law, according...

Economy

THE BANGKO SENTRAL ng Pilipinas (BSP) may deliver a second off-cycle rate hike in early November when the US Federal Reserve is expected to...

Economy

THE ASIAN Development Bank (ADB) is planning to allocate at least $14 billion for a program aimed at easing a food crisis in the...

Investing

With the reversal of the 1.25% rise in National Insurance Contributions happening on the 6th of November, employers across the nation have an opportunity...

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Investing

The minute that any question pops into your head, you can simply ask Google. No longer do we have to pour over books and...

Investing

Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...

Economy

Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.