Racehorse VAT Return Service

The quick, hassle-free route to reclaiming your racing VAT

Since the Racehorse Owners VAT Scheme was introduced in 1993, we’ve been helping owners reclaim significant sums through our dedicated VAT return service – on average, around £4,500 per horse per year. 

How the scheme works

If you’re registered with the British Horseracing Authority (BHA) and own or lease 50% or more of a horse in training, you may be able to reclaim VAT on a many racing-related expenses. These include:

  • The original purchase price of the horse
  • Training, vet and farrier bills
  • Travel and accommodation when you’re watching your horse race or train

To qualify, you will also need a sponsorship agreement in place (which we can help to arrange through the Weatherbys Racing Bank Sponsorship Scheme). As an extra benefit, this will also qualify you for an annual payment of £100 plus VAT the first time your horse runs each year.

You can register for VAT as a sole trader, a partnership or a limited company. Be aware that output VAT must also be declared on income such as prize money, horse sales and sponsorship.

How we can help

Handling VAT can be complex and time-consuming. That’s why many owners leave it to us. With decades of experience, we know how to maximise the benefits and can manage the whole process for you – working with HMRC on your behalf for your application and when preparing and submitting quarterly returns.

We make sure paperwork is completed accurately and on time and you will find our fees are some of the best around.

If you have a Weatherbys Racing Bank account, we also offer reconciliation for syndicates and a bespoke service to provide details of a horse’s income and expenditure through the year.

You can read more about the benefits of using our VAT Return Service, as well as further details on the scheme in the Q&A below.

Your VAT Return Service is wonderful. It is worth every penny of your fee for me not to have to lift a finger to get this done!

Racing Bank VAT Client

Still have questions?

We’ve answered the more common ones here, but you can also call us on +44 (0)1933 543 543 to chat through any queries. 

We complete VAT returns for both single horse owners and large scale owners, who may own more than 100 horses. We also process returns on behalf of breeders, submitting both their racing and breeding reclaims in a single return.

Not everyone is aware you can reclaim VAT. One client recently received more than £10,000 in backdated VAT to 2017.

Rachel Parkinson, Racing Bank Assistant Manager

Yes, the scheme is open to any racehorse owner registered with the British Horseracing Authority, subject to some conditions. Weatherbys VAT Services can act as your VAT Agent in the UK. 

You won’t be able to register for VAT if you own less than 50% of the horse. See if you can reach the qualifying 50% ownership with an additional partner. 

There’s no cost to register directly with HMRC, but if you’d like us to handle your application for you, we charge a one-off fee of £52 plus VAT which we’ll include when we do your first VAT submission. 

Our fee is based on the number of horses in training and ownership type and starts from £109 plus VAT per quarter. There’s a discount if you have a Weatherbys bank account and don’t forget, the VAT on this fee is also reclaimable. 

If you’re a Weatherbys account client, we’ll debit the amount from your account once we’ve submitted your return. Otherwise, we’ll send you an invoice with payment instructions. 

All racehorse sponsorship agreements must be registered with the British Horseracing Authority. Your trainer may be able to help with this or speak to us and we can advise. 

You do need to register, but we’ll do this for you as part of our service. 

The easiest and safest method is to send them to our primary email address, which is vat@weatherbys.bank from which you will receive an acknowledgment of receipt. We can accept most image types, with the exception of HEIC files. A reminder email is sent each quarter prompting you to forward your invoices for your VAT submission. Alternatively, you can send your invoices to us as you receive them.

We’ll send you a reminder each quarter, or you can send your invoices to us when you get them if it’s easier. Just make sure each invoices includes:  

  • Name, address and VAT registration of the supplier 
  • Date of the invoice 
  • VAT rate and amount 
  • Your name and address 
  • Horse’s name or breeding if unnamed 

Note, you can’t reclaim VAT using an invoice that states ‘this is not a VAT invoice’ or by using a proforma invoice, statement or delivery note.  

Yes, if you join the scale charge scheme (by paying a quarterly fee based on your vehicle’s emissions). Contact us and we’ll advise or arrange this for you. 

Yes, if you own more than 50% of the horse. The VAT portion is declared to HMRC as income received. So if you receive £12,000 into your racing account, £10,000 is the prize money you will keep and £2,000 is the VAT which is then declared on your return.  

No, we’ll charge a reduced fee of £41 plus VAT. HMRC still require a VAT return even if you don’t have any invoices to include that quarter. 

It usually takes around 7 to 10 days to get your repayments from HMRC but sometimes it can take up to 28 days. We’ll send you the VAT breakdown and receipt when we submit your return and you can tell us where you’d like the repayments to be sent; most clients choose to use their Weatherbys bank account for this.

You must account for VAT if you recovered input VAT on the original purchase. The value suggested by HMRC for VAT purposes is the open market value at the time the non-business use or disposal of the horse takes place. If you’re not sure of the open market value, ask a bloodstock agent for a valuation.

You must account for VAT if you recovered input VAT on the original purchase. The value suggested by HMRC for VAT purposes 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.

HMRC expects a quarterly return on all active registrations, even if you’ve nothing to submit (otherwise you may be liable for a penalty or fine). If you’re planning on putting another horse into training within 12 months, we’ll submit nil VAT returns for you in the interim period. Our minimum charge for this is £41 plus VAT. Otherwise, it’s best to de-register.

If you intend to put another horse in training within 12 months, we can submit nil VAT returns for you in the interim period. HMRC dictates that while the VAT registration is active, we need to submit a quarterly VAT return. Our minimum quarterly charge of £41 plus VAT will apply for submitting a nil return. Failure to submit a quarterly VAT return may result in HMRC issuing a penalty or surcharge notice. Further information can be found at

www.gov.uk/vat-returns/surcharges-and-penalties

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