What is the Owners VAT Scheme?
The VAT Scheme allows owners to claim back their racing related VAT provided they have a sponsorship agreement in place to the minimum value of £300 per horse; or £750 per horse if running in Class 1 races; or £100 per horse per year where the agreement is for a group of ten or more horses.
How do I get a Sponsor?
Your trainer may be able to help you with this. Alternatively, the ROA will provide sponsorship for horses in training which are wholly owned by ROA members. Further details can be obtained from the ROA directly.
On what can I claim back VAT?
The original purchase price of the horse, training fees, veterinary fees, blacksmith’s fees, telephone bills, travel and accommodation costs incurred by you when watching the horse race or train and much more. Weatherbys VAT Services will be happy to advise you on the specific details.
If I live overseas can I still register for VAT under the Scheme?
Yes. Either by using an agent based in the UK to act on your behalf or by registering directly with H M Revenue & Customs in Aberdeen which specialises with VAT registered traders who are based overseas. Weatherbys VAT Services can act as your UK VAT agent.
When will I receive my first refund?
The registration process takes just over a month. As a general guide, subsequent repayments should normally take no longer than 2 weeks from the submission of your VAT return, however this can vary depending on the size of the claim.
If I own less than 50% of the horse what can I do?
If you are in a racing partnership or joint ownership then you can register a joint VAT number with your partners and claim back the VAT through this number. Weatherbys VAT Services will be able to advise you on this process.
What if I sell my racehorse after I am registered for VAT?
If you sell your racehorse after you are VAT registered then the sale will attract VAT. If you are entering it for sale through a public auction then please notify the auction house in advance of the sale that you are VAT registered. If you sell the horse privately then the sale invoice must detail the VAT charged. All VAT charged on sales must be declared to H M Revenue & Customs accordingly.
Is VAT due if I give a horse away or put it to non-business use?
You must account for VAT if you recovered input VAT on the original purchase. The value for VAT is the open market value at the time the non-business use occurs or the horse is disposed of. If you are not certain of the open market value you should ask a bloodstock agent for a valuation.
Why Weatherbys?
Weatherbys VAT Services has over ten years' experience in providing a professional, accessible service by highly trained staff. We aim to maximize the benefits of the VAT Scheme for our clients and ensure that all paperwork is completed accurately and on time in all cases. Our charges are also amongst the most competitive in this market.
What is the cost?
Weatherbys VAT Services do not charge a registration fee.
Our charges depend on the number of horses in training. A sole owner with one horse in training will be charged £96 per quarter.* In instances where the first VAT submission reflects a period that is longer than the normal quarterly return our charge will be increased accordingly. All subsequent VAT returns will be charged at our standard quarterly rate.
*£105.60 per quarter for those without a Weatherbys Bank Account.
| Schedule of Fees | ||||||||||
| Number of Horses | 1* | 2 | 3 | 4 | 5 | 6 | 7+ | |||
|
Number of joint owners/partners for whom invoices are submitted |
1 | £96 | £128 | £151 | £151 | £179 | £179 | POA | ||
| 2-4 | £128 | £151 | £151 | £179 | £179 | £201 | POA | |||
| 5-8 | £151 | £151 | £179 | £179 | £201 | £229 | POA | |||
| 9-12 | £151 | £179 | £179 | £201 | £229 | £229 | POA | |||
| 13-20 | Price on application | |||||||||
| *up to and including 1 horse | ||||||||||
| The above charges assume that the client has a Weatherbys Bank account and therefore includes a 10% discount | ||||||||||