Tax Guide for Dog Walkers and Pet Sitters

The Accounted Business Team·5 February 2026·7 min read

Dog walking and pet sitting have grown into proper businesses for thousands of people across the UK. Whether you walk three dogs after school or run a full-time pet care operation, HMRC expects you to pay tax on your earnings. This guide explains exactly what you need to know for the 2025/26 tax year.

When Does a Hobby Become a Business?

This is the question that catches out most pet carers. Walking your neighbour's dog for a tenner here and there might feel like a favour, not a business. But HMRC uses a straightforward test: if you are carrying out an activity on a regular basis with the intention of making a profit, it is a trade.

Signs that HMRC would consider you as running a business:

You advertise your services (even on social media)
You have regular clients who pay you
You set prices and issue invoices
You have business insurance
You have invested in equipment or training

If any of these apply, you are running a business and should register as self-employed.

The £1,000 trading allowance

There is some breathing room. If your total income from dog walking or pet sitting is £1,000 or less in the tax year (6 April 2025 to 5 April 2026), you do not need to tell HMRC or file a tax return. This is the trading allowance.

Once you go over £1,000, you must register as self-employed and file a Self Assessment tax return. You can still use the £1,000 as a flat deduction instead of claiming actual expenses, but most people earning a decent amount will be better off claiming their real expenses.

Registering as Self-Employed

You need to register with HMRC by 5 October following the end of the tax year in which you started. So if you started dog walking in July 2025, you must register by 5 October 2026.

Registration is free and takes about ten minutes online at gov.uk. You will receive a Unique Taxpayer Reference (UTR) number, which you use to file your tax return.

What Expenses Can You Claim?

Here is where you reduce your tax bill. Every legitimate business expense comes off your income before tax is calculated.

Insurance

This is non-negotiable for professional dog walkers and pet sitters. Public liability insurance covers you if a dog in your care injures someone or damages property. Some policies also include care, custody, and control cover for the animals themselves.

Your annual insurance premium is a fully deductible business expense.

Treats, food, and supplies

If you provide treats, poo bags, leads, harnesses, or any other supplies for the animals in your care, these are deductible. Keep the receipts.

For pet sitters who provide food for overnight stays, the cost of that food is also deductible. Just make sure you are not claiming food you feed to your own pets.

Vehicle costs

Most dog walkers drive to pick up dogs or travel between walks. You have two options for claiming vehicle costs:

Option 1: Simplified mileage rates (recommended for most)

45p per mile for the first 10,000 business miles
25p per mile after that

Keep a mileage log noting the date, destination, and miles driven for each business journey. Your commute from home to your first pick-up does not count unless your home is your business base (which it usually is for dog walkers — more on this below).

Option 2: Actual costs

Claim the business proportion of your actual running costs — fuel, insurance, servicing, repairs, road tax, and depreciation. This involves more record keeping and you need to work out the percentage of miles that are business versus personal. Once you choose this method, you must stick with it for that vehicle.

For most dog walkers, the simplified mileage rate is easier and often works out similarly.

Advertising and marketing

Anything you spend to get clients counts:

Business cards and flyers
Website hosting and domain fees
Social media advertising
Listing fees on pet care platforms like Tailster or Rover
Branded clothing or van signage

DBS checks

Many clients, particularly those who give you keys to their home, expect a DBS (Disclosure and Barring Service) check. The application fee is a deductible expense. If you renew it through the DBS Update Service (£16 per year), that annual fee is also deductible.

Training and qualifications

Courses in canine first aid, dog behaviour, or pet care qualifications are deductible as long as they relate to your business. If you are a pet sitter and take a course in animal nutrition, that counts. A course in cake decorating does not.

Equipment

Items you buy specifically for the business are deductible:

Leads, harnesses, and collars (spares for clients' dogs)
Dog crates or travel cages for your vehicle
Waterproof clothing and walking boots used for work
Towels for drying dogs
First aid kit

Home office costs

If you run your business from home — taking bookings, doing admin, managing your schedule — you can claim a proportion of your household costs. The simplest approach is HMRC's flat rate:

25 to 50 hours of business use per month: £10 per month
51 to 100 hours: £18 per month
101 hours or more: £26 per month

Alternatively, you can calculate the actual proportion of your home used for business, but the flat rate method is far simpler.

Phone costs

The business portion of your mobile phone bill is deductible. If you estimate 50% of your phone use is for arranging walks, texting clients, and using maps, you can claim 50% of the bill.

How Your Tax Bill Works

Your profit is your total income minus your allowable expenses. You then get your £12,570 Personal Allowance tax-free. If you have other income (from a job, for example), your Personal Allowance may already be used up.

Tax rates for 2025/26:

20% on taxable income from £12,571 to £50,270
40% from £50,271 to £125,140
45% above £125,140

You also pay National Insurance:

Class 2: £3.45 per week if profits exceed £12,570
Class 4: 6% on profits between £12,570 and £50,270, then 2% above that

Record Keeping

You must keep records of all income and expenses for at least five years after the filing deadline. For the 2025/26 tax year, that means keeping them until at least January 2032.

What you need to track:

Every payment received — date, client name, amount
Every expense — date, description, amount, and receipt
Mileage log — date, journey, miles

This is where a tool like Accounted earns its keep. Instead of shoeboxes full of receipts and scribbled mileage notes, Penny (Accounted's AI bookkeeper) can categorise your expenses as you go. Snap a photo of a receipt and it is filed and categorised in seconds.

VAT — Do You Need to Worry?

Almost certainly not. You only need to register for VAT if your turnover exceeds £90,000 in a rolling 12-month period. Very few sole-trader dog walkers reach that level. But if you do, you must register and start charging VAT to your clients.

Common Mistakes to Avoid

Not registering at all. "It is just a bit of dog walking" is not a defence. If you earn over £1,000, register.
Forgetting cash payments. Cash from clients is still taxable income. Record it all.
Claiming personal pet costs. Food and vet bills for your own pets are not business expenses.
No mileage log. Without a log, HMRC can reject your entire mileage claim. A simple notebook in your glovebox is enough.
Missing the deadline. Self Assessment must be filed by 31 January following the end of the tax year. Late filing means an automatic £100 penalty.

Seasonal Planning

Dog walking income can be seasonal. You might be busier during school holidays or quieter in winter. If your income fluctuates, keep some money aside for your tax bill throughout the year. A good rule of thumb is to set aside 25-30% of your profit.

HMRC may also ask you to make Payments on Account — advance payments towards next year's tax bill — if your Self Assessment bill is over £1,000. These are due on 31 January and 31 July.

Start Your Free Trial With Accounted

Running a dog walking or pet sitting business should be about the animals, not the admin. Accounted takes the pain out of bookkeeping with a simple app built for sole traders. Try it free and see how easy keeping your tax records can be.

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