Hi, Just been asked by a client if he could put the vets bills for his dog in as an expense, as his two dogs are for security. I said I would look into it for him........ Fine you may think,,,, Until an hour later I was out shopping and bumped into him in the car park in the back of his car were to mini jack russel dogs. He said they stop in a lockup over night and the dog type should not matter.
Do you think he is pulling a fast one or is he right??.
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Just got off the phone to him as this was playing on my mind, told him that I would not think this would be advisable. He said the size of the dog is not an issue. Is the noise the dog makes....
I now think He may be right...
How big does the dog need to be to be a guard dog ????. cant fine anything on HMRC.
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Every thing will be all right in the END..... If its not all right .... Its not the END.
At the end of the day, Joe, he signs the accounts and accepts responsibility for any comeback.
I would prepare a letter of representation, for him to print on his own letter head, and sign/date. Write it as though it is from him, saying he has heard your advice, but he feels it would be accepted by HMRC, and, that he is happy to take responsibility for any penalties and interest that might arise from an investigation.
That will either change his mind, or cover your ass!
Can I claim for my German Shepherd, who will help protect my client's documents and data on my computers? She's also my stress therapist, so will calm me down when dealing with frustrating clients and bureaucracy
A gaurd dog is just that, it is not a family pet, it is the equivalent of an employee of the business and as such he would expect the reasoning for its existance to be wholly, necessarily and exclusively for the purpose of the business.
That is not the case here. Its a family pet that lives at home and barks if there are intruders... Like every other dog (and one of our Rabbits) does.
It is not a dog purchased wholly, necessarily and exclusively to guard business premises.
HMRC would (a) laugh there cotton socks off and (b) go through everything in the books with a fine toothcomb as if a business owner is trying this one then its a fair bet that they'll be trying other things.
In order to deter the client I would push investigation insurance and tell them how much your support would cost during an investigation if they don't take it out. (might get them thinking about how cheap the vets bill is by comparrison).
Shaun.
p.s. LOL Tim.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
If they're rescue dogs, they may have been rehomed on the condition that they're not used as working or guard dogs. UK German Shepherd Rescue, who I volunteer for, impose that condition. So the documents that came with the dog may not help his case. Some rescues may even attempt to get the dogs back if they discover they are used as guard dogs. That might be another argument to help persuade him.
I totally agree that it is not something he can claim- why were they in the car at the supermarket with him if they were purely guard dogs? I would never allow one of my clients to claim it
I needed a laugh after a long morning slogging through the usual disorganisation of one of my 'shoe box' clients. The concept is sound but I'm with Shaun - can the client prove the dogs were acquired wholly and exclusively for the purpose of guarding? If not then no go on charging for them.
The real joke here is the ad I can see as I type.... I know the ads scroll each time to click on a new page but the one showing as I type is for
Pet Insurance!
As someone who has pet insurance and a very expensive cat who needed skin grafts a few years back - could I suggest you recommend insurance to your client? Not expensive and when big expenses crop up the majority of the cost is covered. Even had a cat who went through chemo and surgery for cancer - we lost her in the end but it gave her an extra year or two without pain. Loved that cat - she came up and asked for her salt baths every day.
If my about to be revived business goes the way I'd really like (which of course it probably won't!), I'd only have clients who welcomed visits from my dog as well as me. So I hope any biscuits and treats they buy her out of petty cash won't be disallowed!!!!
Told the client my views and I now no that you can claim for the food for the dog, but this VET bill is a medical bill and this is not allowed.
Also told him how much it would cost to argue the point in a inspection. I also told him as I was only 98% sure of this that the next time I am with am inspector at a visit I would bring it to his attention. He seems to be happy with that.
My point is why take the chance...... clients they all no more than you....
(In this case he may be right).
Many thanks
Joe
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Every thing will be all right in the END..... If its not all right .... Its not the END.
Hi, Just been told to look back at another return done by another accountant in past years, found a client that had claimed 3 years ago.
When I spoke to him he said he had claimed 80p a day for the life of the dog. three years ago the dog died and he didnt get another. (he did say in 9 years of trading he never had an inspection). I told him he still had time.
If the business was a security firm he could claim for VET bill.
I would still like to see it in black and white as this is the first time its came up for me.
cheers Joe
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Every thing will be all right in the END..... If its not all right .... Its not the END.
