This frequently asked questions document applies to those breeding in England only.
Theregulations came into force on 1 October 2018.
1. What is defined as a business that breeds and sells dogs?
The circ*mstances which a local authority must take into account in determining whether an activity is being carried out in the course of a business include, for example, whether the operator (a) makes any sale by, or otherwise carries on, the activity with a view to making a profit, or (b) earns any commission or fee from the activity and/or advertises a business of selling dogs.
HMRC badges of trade indicate that a profit-seeking motive is not the only marker set as to whether someone is operating a business, and DEFRA has made it clear that they do not intend to target hobby breeders under the regulations. It is important to note that the test of whether or not a breeder is running a business should be determined by HMRC’s nine badges of trade, which are applicable to everyone and not just dog breeders.
DEFRA has provided guidance on how the HMRC badges of trade are to be applied to those breeding dogs. The following factors have been identified as indicators that a breeder may be operating a business:
- High volumes of animals sold or advertised for sale could indicate a business
- Low volumes of animals sold or advertised could indicate a business where high sales prices or large profit margins are involved
- The number, frequency and/or volume of sales - systematic and repeated transactions using the same means of advertising are likely to indicate a commercial activity
- Read the full DEFRA guidance on what factors may indicate a business
The regulations cover dog breeders, dog and cat boarders, pet vendors, those running horse riding establishments and those exhibiting animals in the course of a business. The litter threshold, as an addition to the business test, is unique to dog breeding. It has been included so that those who breed three or more litters and sell puppies, but who are not in the business of breeding and selling dogs, require a licence.
2. Is it true that I will need a licence if I make more than £1,000 selling my puppies?
We are aware of suggestions that there is a £1,000 threshold and that those above will require a licence and those below will not. This is only partially true.
Latest DEFRA guidance is explicit:
“If someone has a trading income below the HMRC trading income allowance, they do not require a licence for their activities. If someone has a trading income above the HMRC trading income allowance, they do not automatically qualify as a business.”
The current HMRC trading income allowance is £1,000. So if income received from the sale of puppies is under £1,000, over the course of a year, DEFRA guidance is clear that you do not require a licence (unless you are over the litter threshold).
Likewise, the guidance is clear that those with over £1,000 of income are not automatically to be categorised as a business and therefore subject to licensing.
It is perfectly possible to have generate an income of well over £1,000 breeding and selling puppies and still make a loss. Expenses such as stud dog fees, food, and veterinary costs can rapidly offset the income generated from the sale of puppies.
There is
no income or profit thresholddefined within either the dog breeding regulations or statutory guidance that indicates when a licence is required under the business test.
3. What are the licencing requirements?
Read the licensing requirements.
It is important to note that although the guidance relating to the licensing requirements is lengthy, it is similar to the old 49-page model licensing conditions that had been in use by local authorities previously.
The star rating system, although a relatively new requirement since 2018, should be better for responsible breeders.
4. What factors will determine my star rating?
DEFRA’s guidance advises breeders on the steps they will need to take to achieve a five-star rating and be awarded a three-year licence. A lower star rating means that breeders will be inspected more often and pay a higher licence fee. Breeders who are members of a UKAS Accredited Scheme, such as The Kennel Club Assured Breeders, and who have been accredited under the scheme for at least one year should be classified as a ‘low-risk’ breeder and be granted a longer better star rating and longer licence period.
5. Will I need a breeding licence to sell my puppies?
If you meet the licensing criteria (see question 2), then you will need a breeding licence. An advertisem*nt for the sale of a dog must include your licence number, the issuing local authority, a recognisable photograph of the dog being advertised, and the dog's age. Puppies must not be sold until they are a minimum of 8weeks of age. A different type of licence is required for those who are selling puppies they have not bred themselves.
6. Will I need a breeding licence to sell my puppies?
If you meet the licensing criteria (see question 2), then you will need a breeding licence. An advertisem*nt for the sale of a dog must include your licence number, the issuing local authority, a recognisable photograph of the dog being advertised, and the dog's age. Puppies must not be sold until they are a minimum of 8 weeks of age.
