Is pet insurance tax deductible for the self-employed?

Full answer

HMRC's "wholly and exclusively" rule means that pet insurance is only deductible as a business expense if the animal serves a genuine business function. A working sheepdog on a farm, a guard dog at business premises, or animals used in a business such as a riding school or pet therapy service may qualify. The insurance premium must relate to the animal's business use, and if there is any personal benefit HMRC may disallow the expense. A pet that simply keeps you company while you work from home does not meet the wholly-and-exclusively test. Similarly, vet bills, food, and other animal costs are deductible only for working animals. HMRC may request evidence of the animal's business role in an enquiry.

Try the calculator