Are you in? It’s your takings, not your profit
Add up everything owners paid you in the 2025/26 tax year – walks, pet visits, home boarding, day care, grooming and any extras like taxi runs to the vet – before taking off van costs or anything else. If you take bookings through an app such as Rover, include the full booking amount, not just what it paid out. If that total (plus any rent from property you let) is over £30,000, MTD applies from 6 April 2027. Over £50,000 and you have been in since April 2026.
Over £50,000
Over £30,000
Over £20,000
planned
Your work in accountant language
What actually happens in your working life, what your accountant and HMRC call it, and what to do about it.
| What happens | Accountant calls it | What you do |
|---|---|---|
| An owner pays you for a week of walks by bank transfer | Sales / turnover | Record the payment when it arrives. |
| A booking app pays you for a boarding stay after taking its commission | Gross income + an expense (fees) | Record the full booking price as income and the commission as an expense. |
| You buy dog food and poo bags for boarders staying with you | Allowable expense – supplies | Keep the receipt. Food for your own dog is not included. |
| You pay the council for your animal activity licence | Allowable expense – licence fees | Keep the licence invoice. |
| You drive dogs to the woods in your van | Business mileage or vehicle costs – allowable | Log the trips. 45p a mile for the first 10,000 miles, or actual costs – not both. |
| You buy new crates, leads or grooming clippers | Equipment – deductible in the year you buy it (cash basis) | Keep the receipt; it comes off your profit this year. |
| You move money to your personal account | Drawings – not an expense | Fine to do, but it doesn’t reduce your tax. |
| Every three months | Quarterly update | Your software sends HMRC your income and expense totals. |
| After 5 April | Final declaration | Confirm the year’s figures; tax is worked out and due by 31 January. |
What can a dog walker claim?
✓ Usually allowable
- Leads, harnesses, long lines, crates, dog guards and van kennels
- Poo bags, towels, treats, and food for dogs you board
- Grooming tables, dryers, clippers, blades, shampoos and their upkeep
- Council animal activity licence fees (home boarding, day care)
- Van or car costs – business mileage, or the business share of actual costs
- Pet business insurance, including care, custody and control cover
- Booking app commission and card fees
- Waterproofs, boots and branded clothing
- Business share of your phone, website and advertising
- Pet first aid and grooming courses for your current work
✗ Not allowable
- Food, vet bills and insurance for your own pets
- Everyday clothes
- Household costs that aren’t extra because of the business
- Parking fines
- Money you take out for yourself (drawings)
Rules that matter for dog walkers and pet sitters
Booking apps report to HMRC
Platforms such as Rover now report the income they pay to sellers to HMRC. Record the full booking value as income and the app’s commission as an expense – that way your records will match what HMRC sees.
Home boarding and your home
If you board dogs at home, you can claim a reasonable share of extra household costs – for example extra heating and cleaning – or use HMRC’s flat rate for working from home based on hours. You need a licence from your council to board dogs commercially in England, and the fee is an allowable expense.
Your own dog
Even if your dog comes on every walk, its food, vet bills and insurance are personal costs, not business expenses.
Worked example
Priya walks and boards dogs in Cheltenham (illustrative example)
| Takings (turnover) | £33,200 |
| less Van costs (business share) | −£3,300 |
| less Booking app commission and card fees | −£1,650 |
| less Food, treats and supplies for client dogs | −£1,100 |
| less Crates, leads and equipment | −£700 |
| less Insurance and council licence | −£640 |
| less Phone, website and advertising | −£480 |
| Profit | £25,330 |
| Income tax (estimate) | £2,552 |
| Class 4 National Insurance (estimate) | £766 |
| Total tax for the year | £3,318 |
| Put aside each month | £276 |
Estimate for 2026/27 using England, Wales & NI rates, assuming no other income. Scotland has different income tax bands.
What a quarterly update looks like
A typical quarter for a dog walker: export your booking app report, add direct bank payments from regulars, check app commission is recorded as an expense, add your mileage log and supply receipts – then press submit in your software, or let your accountant do it. If you keep a calendar of walks, ticking it off against payments each week catches anyone who hasn’t paid.
| Quarter | Period | Submit by |
|---|---|---|
| Q1 | 6 Apr – 5 Jul | 7 Aug |
| Q2 | 6 Jul – 5 Oct | 7 Nov |
| Q3 | 6 Oct – 5 Jan | 7 Feb |
| Q4 | 6 Jan – 5 Apr | 7 May |
| Final declaration | The whole tax year | 31 Jan following |
Quarterly updates are summaries – they don’t change when you pay. Tax is still due by 31 January (plus payments on account on 31 January and 31 July if they apply to you).
What will an accountant cost?
Typical monthly fees under MTD for Income Tax for: Sole trader, one business.
| Option | What you get | Per month |
|---|---|---|
| You do it yourself | MTD-compatible software. You keep the records and send the updates. | £0–£15up to £180 a year |
| Accountant files for you | You keep records in an app; they check them, send the 4 quarterly updates and the final declaration. | £30–£60about £360–£720 a year |
| Full service | They do the bookkeeping too – you share receipts and bank feeds, they handle the rest. | £60–£120about £720–£1,440 a year |
What pushes the price up: lots of transactions every month, or more than one income stream; records kept on paper rather than in an app; being VAT-registered; catching up on missed updates or late returns.
What a fixed-fee quote should include
- All 4 quarterly updates and the final declaration (your tax return)
- The MTD software licence – or whether you pay for it separately
- Whether they do the bookkeeping or only check what you’ve recorded
- A reminder before each deadline and an estimate of the tax to put aside
- Whether VAT (20%) is added on top – not every practice charges it
Accountancy fees for your business are an allowable expense, so they reduce your tax bill.
Indicative ranges from published UK price lists, checked October 2026. Not a quote – your fee depends on how many transactions you have, how tidy your records are and where you live.
Questions dog walkers and pet sitters ask
I use Rover for some clients. What do I record?
Record the full amount the owner paid as income and Rover’s fee as an expense. Your turnover – which decides MTD – is the full amount.
Can I claim food for dogs I’m boarding?
Yes, if you pay for it for client dogs. Food for your own pets is not allowable.
Can I claim part of my house for home boarding?
You can claim a reasonable share of the extra costs the business causes, or use HMRC’s flat rate for working from home. Keep a note of how you worked it out.
I walk a few dogs before my day job. Am I affected?
Your wages don’t count for MTD. Your dog walking income does – over £1,000 a year and you need to register for Self Assessment, and above the MTD threshold (with any rental income), MTD applies.
Sources
- Find out if and when you need to use Making Tax Digital for Income Tax – GOV.UK
- Work out your qualifying income for Making Tax Digital for Income Tax – GOV.UK
- Send quarterly updates using Making Tax Digital for Income Tax – GOV.UK
- Find software that works with Making Tax Digital for Income Tax – GOV.UK
- Penalties for Making Tax Digital for Income Tax – GOV.UK
This guide is general information about HMRC’s Making Tax Digital rules as of 26 October 2026, not tax advice. MTD Match is an independent introduction service and is not affiliated with HMRC. Check gov.uk or speak to an accountant about your own situation.