ROA VAT SOLUTION

A Fast, Efficient, and Hassle-Free Solution for Your Racing VAT 

Owning a racehorse inevitably involves paying VAT. However, reclaiming VAT has never been easier, thanks to the ROA VAT Solution. 

Whether you are an ROA member or not, our team can liaise with HMRC (HM Revenue & Customs) on your behalf, making the VAT reclaim process seamless and hassle-free. This allows you to devote more time to the sport you love. 

Our experts are available to provide guidance and support on VAT matters at every stage of your ownership journey. 

With over 20 years of experience, we help owners recover VAT on racing-related expenses such as training, veterinary services, and travel. On average, owners save £4,700 in VAT annually. Owners can also make additional savings on the VAT paid on the horse’s purchase, which can amount to several thousand more. 

What is the Racehorse Owners VAT Scheme? 

Introduced in 1993, the Racehorse Owners VAT Scheme enables racehorse owners to register for VAT and reclaim it on eligible racing-related expenses. This scheme significantly reduces the financial burden of VAT by lowering the costs associated with owning a racehorse. 

Who is Eligible? 

Racehorse owners registered with the British Horseracing Authority (BHA) are eligible to apply for VAT registration with HMRC. Owners can register as individuals if they own at least 50% of a horse, either as a sole owner or as part of a partnership. Partnerships, syndicates, and clubs may register as a single entity, allowing them to recover VAT for all partners or members involved. 

To qualify, owners must have a sponsorship agreement in place, and the racehorse must be officially registered with a trainer when submitting the BHA D1 (individual, company, or club) or D2 (partnership or syndicate) form. 

The ROA VAT Solution is available to both members and non-members, including owners residing overseas. If you are already VAT registered, you can easily authorise the ROA to manage your VAT affairs as your agent. 

How Does It Work? 
For new VAT registrations: 

  • Complete the Agent Flyer and the relevant ownership forms (D1 or D2). 

  • Email the completed forms to [email protected]. 

  • We will handle the VAT registration process with HMRC and manage all quarterly submissions. 

  • You will receive reminders before each return is due, and VAT refunds will be credited directly to your account. 

For existing registrations: 

  • Authorise the ROA by completing the Agent Flyer. 

  • We will take over VAT submissions and ensure compliance with HMRC regulations. 

Our fees:

ROA VAT Solution Fees for ROA Members - 2025

ROA MEMBERS Number of horses                        
Ownership status 1   2   3   4   5   6   7+  
  Net VAT 20% Net VAT 20% Net VAT 20% Net VAT 20% Net VAT 20% Net VAT 20% Net VAT 20%
Sole/company 107 21.4 145 29 161 32.2 176 35.2 198 39.6 198 39.6 Price on application
Partnership/syndicate/club 145 29 161 32.2 176 35.2 198 39.6 198 39.6 219 43.8    

ROA VAT Solution Fees for non-Members - 2025

NON-MEMBERS Number of horses                        
Ownership status 1   2   3   4   5   6   7+  
  Net VAT 20% Net VAT 20% Net VAT 20% Net VAT 20% Net VAT 20% Net VAT 20% Net VAT 20%
Sole/company 134 26.8 181 36.2 221 44.2 221 44.2 249 49.8 249 49.8 Price on application
Partnership/syndicate/club 181 36.2 221 44.2 221 44.2 249 49.8 249 49.8 275 55    

Registration Fees

Registration Fee Net VAT 20%
Member 32 6.4
Non-Member 32 6.4

Please note first VAT returns will be charged based on the number of quarters covered. E.g. 6 months will be 2 quarters. There will be a one-off registration fee of £32.00 plus VAT for all new VAT registration numbers, charged with the first VAT return. 

Occasionally, there may be a VAT period where there are no invoices for VAT recovery, for example if you are between horses, or your horse is resting at home throughout the VAT period. In such instances a ‘nil return’ will be submitted and our fee will be reduced to £32.00 plus VAT for all ownership types and ROA membership statuses

For all other queries contact us at [email protected] or speak to one of our team on 0118 3385 685 

Agent Flyer

Please either download the PDF and complete the form, or complete the onlie form below: 

Agent-Flyer.pdf


If you are already VAT registered, please complete the following:


IMPORTANT INFORMATION - Please read:

ROA VAT Solution - Important Information

We take your privacy very seriously.

To provide you with our VAT Solution, certain information that can be used to identify you (your name, address, bank details, VAT number, HMRC details, and relevant invoices) will be entered into the e-platform powered by our partner, Xero. This e-platform may share personal data to Xero’s partners in the USA who provide some of the underlying technology.

Wherever possible, we have taken steps to ensure that any personal data transferred to those providers is subject to an equivalent level of protection as it would have in the UK. Xero’s standard business terms do not currently enable us to guarantee that this level of protection can be given by three of its US-based partners (Mailgun, Avalara, and Xero Inc).

Xero may change these arrangements. In the meantime, in order to allow Xero to transfer your personal data to those US-based partners, we require your explicit consent under Article 49(1)(a) of the UK GDPR. This is because your personal data that is transferred to them could be accessed or intercepted by US law enforcement, investigative, and/or surveillance authorities. In the unlikely event your personal data is accessed or intercepted in this way, you may not have recourse to effective legal remedies.

To provide your explicit consent, please sign below where indicated. You can withdraw this at any time by contacting us at [email protected]. However, without your explicit consent, we will not be able to provide you with our VAT Solution and will cease to do so if you withdraw it.

I have read and understood all of the above and give my explicit consent for my personal data to be transferred to Xero Inc, Avalara, and Mailgun in the US so that I can benefit from the ROA’s VAT Solution. I understand that, if I withdraw this explicit consent, the ROA will no longer be able to provide its VAT Solution to me and that my agreement with the ROA for the VAT Solution will immediately terminate.

ROA VAT Solutions Terms and Conditions

TERMS AND CONDITIONS OF ROA VAT SOLUTION 

 

1. DEFINITIONS 

1.1. Each of the following words or expressions in  bold will have the same corresponding meaning  every time that it is used: 

“Agreement” means the agreement between  you and us in respect of the Services, and this  agreement is made up of the Particulars, the  Charging Schedule, and these Terms (and any  reference to the Agreement in these Terms  refers to all of these documents together); 

“BHA” means British Horseracing Authority  Limited, a company incorporated and registered  in England and Wales with company number  02813358; 

“Cooling-Off Period” means a period of 14  calendar days starting on the day after you return  your signed copy of the Agreement to us; 

“Data” means the information that we require  from you in order to provide the Services,  including (but not limited to) [your name, address,  bank details, NI, invoices relating to racehorse  ownership that have been paid by  you or on your behalf during the relevant VAT period, and  (if applicable) the name of your syndicate or  partnership and VAT registration number]; 

“HMRC” means Her Majesty’s Revenue and  Customs; 

“Fees” means the Fees payable by you to us for  the Services, which are set out in the Charging  Schedule or as notified by us to you under  clause 4.2 below; 

“Member” means a registered member of the ROA; 

“Particulars” means page [2] of this Agreement; 

“Platform” means the online platform operated  by Xero in which either we (on your behalf) or  you (if we have made the Platform available to 

you) enter the Data;  

“Services” means the ROA VAT Solution  described in the Particulars; 

“Terms” means these terms and conditions; 

“VAT” means Value Added Tax in line with the  Value Added Tax Act 1994; 

“VAT Claim” means a claim submitted to HMRC on your behalf pursuant to and in connection  with the Services; 

“we”, “our”, “us”, or the “ROA” refers to the  Racehorse Owners Association Limited, a  company incorporated and registered in England  and Wales with company number 00398604  and whose registered office is at Forbury Road,  Reading RG1 1SB; 

“Xero” means Xero Limited, a company  incorporated and registered in England and  Wales with company number 04242347; and  “you” or “your” refers to the Member named in  the Particulars. 

 

2. OUR PROVISION OF  VAT SOLUTION SERVICES 

2.1. So that we can provide the Services to you,  you authorise us to act on your behalf in all  dealings and communications with HMRC, the  BHA, and/or third-party suppliers (including Xero)  in connection with any matter that enables us to  provide or to continue to provide you with the  Services or that relate to your VAT registration. 

 

2.2. We will carry out the Services with  reasonable care and skill and within a  reasonable time (unless we have agreed with  you in writing a specific time for the Services to  be carried out). 

 

2.3. Our provision of the Services might be  affected by events beyond our reasonable  control. If so, there might be a delay in our  ability to complete VAT on your behalf as part  of the Services, but in such circumstances we  will endeavour to make reasonable efforts to  Limit  the effect of any of those events and will  keep you informed of the circumstances. We  will endeavour to resume the Services as soon  as possible once any such  events have been  resolved. Examples of events which might be  beyond our reasonable control include (but are  not limited to) unavailability of the Platform, a  delay or failure in communication from HMRC,  and a delay in receiving the Data from you. 

 

2.4. You acknowledge that we are not  responsible for HMRC’s decisions and cannot  guarantee the successful reclaim of VAT on your  behalf under or in connection with the Services. 

 

3. YOUR RESPONSIBILITIES 

3.1. So that we can provide the Services  (including ensuring that we can make VAT Claims  on your behalf within the timescales stated by  HMRC), you promise that, by no later than 14  calendar days after the end of the relevant VAT  period, you will provide to us all the relevant  Data that we require for this purpose. 

 

3.2. Even if you do not provide any particular  Data to us within the timescales stated in clause  3.1 above, you authorise us to submit a VAT  claim on your behalf in connection with the  Services notwithstanding our lack of certain Data  in order to avoid HMRC levying any penalty or  fine on you. 

 

3.3. You promise that any and all Data that you  provide to us is true, complete, and accurate and  not in any way fraudulent, false, or misleading.  You shall not use the Services to commit any  offence under any applicable law consisting of  being knowingly concerned in (or taking steps  with a view to) the fraudulent evasion of tax or in the facilitation of the evasion of tax. 

 

3.4. You remain personally responsible for  verifying the accuracy of any information that you  use from the Services for your own legal, tax, and  compliance obligations. 

 

3.5. If you cause us to suffer or incur any of the  losses described in clause 6.1.2 below, then  (provided that those losses were not caused by  our own fault and to the fullest extent allowed  under applicable laws) we may invoice you for an  amount equal to those losses, and you will pay  such invoice within 30 calendar days of  receiving it. 

 

3.6. If you enter Data yourself directly into  the Platform or use the other Platform in  any way, you agree to comply with Xero’s terms  and conditions concerning the use of its  Platform, which are available at  www.xero.com/uk/about/legal/terms. 

 

4. FEES AND PAYMENT 

4.1. Unless we have agreed otherwise with you  in writing, you must pay the Fees to us [on a  quarterly basis] either: 

 

4.1.1. by way of a credit or debit card  payment within [30 calendar days] of our  submission to you of an invoice in respect of  those Fees (and any such payments must be  authorised by the relevant card issuer); or 

 

4.1.2. if you have indicated in the Particulars  that you will pay the Fees by direct debit,  via direct debit using the details that you  provided to us when you entered into this  Agreement. 

 

4.2. We may change the Fees at any time. If  we do this or increase any of our other charges  payable by you to us under this Agreement, we  will give you written notice of the change(s) at  least 30 calendar days before they  take effect. If  you do not agree to the change(s), you may end  the agreement by giving us at least 30 calendar  days’ written notice (see clause 8.1 below for  details on how to do this), provided you give this  notice to us before the changes take effect. Any  increased Fees will not apply during your 30-day  cancellation notice period. 

 

4.3. If you have agreed to pay the Fees via direct  debit, you have the right to cancel this payment  method at any time by contacting your bank or  building society and asking them to stop the  payments. You should check the requirements  directly with your bank or building society. If you  do decide to cancel your direct debit, you must  immediately let us know so that we can update  our records, and we will then arrange to send  invoices to you for the Fees instead. 

 

4.4. If your direct debit fails or where you are  more than 14 calendar days late in paying an  invoice to us under this Agreement, then we may  charge you an administration fee of £10 for each  missed direct debit payment or late payment  of an invoice in order to cover our costs of  contacting you to collect payment. 

 

4.5. If HMRC notifies us that it requires an  additional payment from you in connection with  the Services, then we will let you know in writing.  You promise to make any such payments directly  to HMRC within 7 calendar days of your receipt  of our notification to you under this clause 4.5. If  you do not make any such payments in time, you  may be required to pay  interest on any such late  payments to HMRC at a rate of interest stipulated 

by HMRC. 

 

4.6. In respect of any late or missed payments,  we may charge you interest on your debt if it  remains unpaid after 14 days. Any such interest  will be charged at a yearly rate of 4% above the  Bank of England base rate. 

 

5. YOUR PRIVACY AND PERSONAL  INFORMATION 

 

5.1. Your privacy is important to us. Any personal  information that you provide to us will be dealt   with in line with our Privacy Policy available at  www.roa.co.uk/utilities/privacy-policy.html, which  explains what personal information we collect  from you, how and why we collect, store, use and  share such information, your rights in relation to  your personal information and how to contact us  and supervisory authorities if you have a query  or complaint about the use of your personal  information. 

 

5.2. You acknowledge that we cannot provide  the Services to you if you do not provide your  explicit consent (or withdraw it after having given  it to us) for us to share your personal information  with Xero’s US-based partners, as explained on  page [3] of this Agreement. If you withdraw this explicit consent after having given it to us, then  our Agreement with you will end immediately. 

 

6. LIMIT ON OUR RESPONSIBILITY  TO YOU 

6.1. Except for any legal responsibility that we  cannot exclude under applicable laws (such as  for fraud or for death or personal injury resulting  from our negligence), we are (to the fullest  extent allowed under applicable laws) not legally  responsible for: 

 

6.1.1. losses or damages that:  (a) were not foreseeable to you and us  when this Agreement was formed (a loss  or damage is reasonably foreseeable if it is  obvious that it will happen or if, when this  Agreement was made, both we and you  knew it might happen – for example, if we  discussed it with you at the time);  (b) that were not caused by any breach on  our part of this Agreement; or  (c) were caused by anything done or not  done by Xero, HMRC, or any other third  party (and you acknowledge that we  are not responsible for the availability,  operation, or functioning of the Platform); 

 

6.1.2. losses or damages (including any  fines or penalties) incurred by you because  you provided us (or HMRC) with erroneous,  false, fraudulent, misleading, incomplete, or  inaccurate Data, or because a VAT Claim was  submitted late to HMRC because (or partially  because) you did not provide the relevant  Data within the timescales stated in clause  3.1 above, or because you did not pay any  sum due from you to HMRC by the  relevant  deadline, or for reasons outside our control; 

 

6.1.3. business or non-consumer losses  or damages (including, but not limited to,  loss of profits, anticipated savings, wasted  expenses, or any other purely financial  losses), even if they were reasonably  foreseeable; or 

 

6.1.4. any decision taken by HMRC in respect  of any VAT Claim submitted by us on your  behalf or by you under or in connection  with the Services, provided that the Data  in relation to the VAT Claim in question  submitted by us to HMRC did not differ from  the Data you provided to us in connection  with the Services. 

 

6.2. If we provide you with direct access to the  Platform, then, to the fullest extent allowed by  applicable laws, we will not be responsible for  any losses that you suffer as a result of your  use of the Platform (including loss or corruption  of or damage to software), and your use of the Platform shall be at your own risk. 

 

7. ENDING THIS AGREEMENT 

7.1. Subject to clauses 7.2 and 7.4 below, you  have the right to cancel this Agreement within  the Cooling-Off Period. To exercise this right  to cancel, you must inform us before the  cancellation period has expired of your  decision  to cancel this contract by a clear statement that  you send to us (for example, by post or by email)  to the contact details set out in clause 8.1 below.  You may use the following model cancellation  form to exercise this right to cancel (but it is not  obligatory): 

To: The Racehorse Owners Association Limited 

I hereby give notice that I cancel our agreement  for the supply of the VAT solution services  entered into [INSERT DATE]. 

Name: [INSERT YOUR NAME] 

Address: [INSERT YOUR ADDRESS] 

Signature: [SIGN IF YOU ARE SENDING BY POST] 

Date: [INSERT DATE] 

 

7.2. We will wait until the Cooling-Off Period is  over before we start to carry out the Services,  unless you have instructed us to carry out the  services during the Cooling-Off Period and we  Have agreed in writing to do so. 

 

7.3. If you ask us to carry out the Services during  the Cooling-Off Period but still decide to cancel  the Agreement before the Cooling-Off Period has expired, we will charge you for the Services  that we have provided up to  the point when you  communicated to us your decision to cancel  this Agreement. 

 

7.4. At any time after the expiry of the Cooling-Off Period, either we or you can end the  agreement by giving at least [30 calendar days’]  written notice to the other party. See clause 8.1  below for details on how to give notice to us. 

 

7.5. We may, by giving written notice to you,  immediately end our Agreement with you  (including suspending or restricting your use of  the Platform) and cease providing the Services  to you if: 

 

7.5.1. you fail to make a payment of the Fees  and such Fees remain unpaid 14 calendar  days after the due date; 

 

7.5.2. you breach any of these Terms  (although for non-serious breaches we will  first give you an opportunity to put things  right, which you will need to do within 7  calendar days); or 

 

7.5.3. we reasonably suspect or believe that  you have committed, or may be committing,  any fraudulent, unlawful, or illegal activity  against us or against any other person or  organisation (including HMRC) in connection  with or through our provision of the Services. 

 

7.6. We may also end our Agreement with you  immediately by giving written notice to you if you  withdraw your explicit consent for us to share  your personal information with Xero’s US-based  partners, as explained on page [3], or if we can  no longer provide the Services as a  result of  any applicable law or regulation or any order,  instruction, or request of HMRC, the Government,  or any other competent administration,  legal, or  regulatory authority. 

 

7.7. If this Agreement is ended for any reason, it  will not affect our right to receive any Fees that  you owe to us under this Agreement, and we will  be entitled to keep any money held (including  deposits and advance  payments) to use it to pay  any obligation or debt that you may owe under  this Agreement. 

 

8. MISCELLANEOUS 

8.1. To serve notice on us under this Agreement,  you can do so by post to Racehorse Owners  Association, 12 Forbury Road, Reading, Berkshire  RG1 1SB or by email to [email protected]. If we need  to serve notice on you in connection with this  Agreement, we will use either your  email address  or postal address stated in the Particulars. If a  letter is posted by you or by us in connection  with this Agreement, it will be  considered to  have been delivered 2 working days after it was  posted, unless it is issued by email, in which  case it will be considered to have been delivered  immediately unless the sender receives an automated message within 72 hours of sending  the email that it was not successfully delivered  to the recipient. 

 

8.2. We will try to resolve any disputes with  you quickly and efficiently. If you are unhappy  with our provision of the Services or any other  matter, please contact us soon as possible. If we  cannot resolve your dispute using our internal  complaint-handling procedure, we will notify you  in writing. 

 

8.3. We may transfer our rights and obligations  under this Agreement we have with you to  another organisation. If this happens, we will tell  you in writing and ensure that the transfer will  not affect your rights under this  Agreement. 

 

8.4. The Agreement is between you and us only,  and no one else has any rights under it. If a court  finds part of these Terms unlawful, the rest will  continue in force. Even if we delay in enforcing any of these Terms, we can still enforce them  later. 

 

8.5. The laws of England and Wales will apply  to this Agreement. If you or we wish to take  court proceedings, the English courts will have  non-exclusive jurisdiction in relation to this  Agreement. 

 

8.6. Nothing in this Agreement is intended to  affect your or our legal rights.  if you require any  advice on your legal rights, you can refer  to www.adviceguide.org.uk. 

 

By submitting this form I am instructing ROA VAT Solution to act on my behalf in all VAT matters.

 

ROA VAT Solution Registration forms

Sole Owner VAT Application Pack.pdf 1

 

Partnership VAT Application Pack.pdf 1

 

Syndicate VAT Application Pack.pdf 1

 

Racing Club VAT Application Pack.pdf

 

Latest News from HMRC

 

VAT - Frequently Asked Questions

I want to become VAT registered under the registration scheme for racehorse owners. What is the qualifying criteria? 

The ownership entity must own at least 50% of a horse, which is in training in the UK with a licensed trainer and is covered by a third-party sponsorship. 

The BHA have D1 and D2 forms for VAT registration. Which should I use? 

Use a D1 to register an individual owner (sole proprietor), company or Racing Club for VAT. Partnerships and Syndicates should use a D2 form.  

I only own 25% of a horse. Does that mean I can’t recover VAT I have paid? 

You wouldn’t be eligible to register for VAT as an individual (sole proprietor). However, you can recover the VAT you have paid by registering for VAT as a partnership with other partners, as long as the aggregate share you own is 50% or greater. 

I sponsor my own horse as a self –sponsorship. Is this sufficient to qualify? 

No, the sponsorship must be by a third-party. This can be in addition to a self-sponsorship. 

I own several horses (all 100% in same ownership). Do I need to register for VAT for each horse? 

No, the VAT registration will cover all qualifying horses for the ownership entity.  

I bought the horse before I registered for VAT. Can I reclaim the purchase? 

When registering for VAT you will be given an effective date of VAT registration (EDR), usually the date BHA approve your D1/D2 application. You can recover VAT on the purchase invoice of the horse up to four years prior to the EDR if the VAT entity owns the horse 100%, this is reduced to six months for a lesser ownership share. For all other VAT recovery, e.g. training, vet fees etc you can recover VAT on valid invoices dated up to six months prior to the EDR. 

How often are the VAT returns done? 

Racehorse owners VAT returns will fall on a quarterly basis, so are submitted every three months. 

How do I send in my invoices for ROA VAT Solution to recover VAT? 

Invoices can be uploaded or emailed into Xero via Hubdoc or sent by post. 

What items can I recover VAT on? 

A non-exhaustive guide to VAT recoverable items under the Racehorse Owners VAT Scheme can be found in the following document:

RECOVERABLE VAT FOR RACEHORSE OWNERS.pdf

 

I am selling a horse. What are the VAT implications? 

If you are selling a horse, you must charge VAT on the sale price at the standard rate (currently 20%). If you are selling the horse through a sales house (e.g., Tattersalls/Goffs) please advise them of your VAT number prior to the sale to ensure VAT is applied to the selling price. If you are selling the horse privately, ensure a sale invoice is raised to include VAT and your VAT number is raised. ROA VAT Solution can assist with a sale invoice template if necessary. 

N.B. If VAT is not applied to the sale HRMC will treat the sale as VAT inclusive so 20% of the sale price will need to be declared to HMRC, otherwise client will lose out! 

Why have I received VAT on prize-money, but not on the Prize Percentage of Stakes? 

Prize-money is subject to VAT at the standard rate. Percentage Prize of Stakes is outside of scope for VAT, as is made up from portion of entry fees which are also outside scope of VAT. 

My return has been submitted to HMRC. When can I expect funds to be received in my account?   

Typically, funds are received within 7-10 working days from the date of submission. However, HMRC advise to allow 30 days before they can be contacted for chasing of funds.  

It is possible that for larger VAT returns (VAT received exceeds £10,000) HMRC will request further information before processing which can delay the receipt of payment.  

I was previously VAT registered and have purchased a new horse. Can I use/resurrect my old VAT registration? 

If the previous VAT Registration was deregistered with HMRC, you will have to re-register and will receive a new VAT Registration number. 

 

Still have a query? Contact our VAT Solution team on [email protected] or on 0118 3385 685 

Get in touch

 

 

VAT RESOURCES

22 May 2025

Don't get caught out by HMRC changes

Whilst racing is a passion for owners, when VAT-registered, HMRC considers it to be a business operating under the Scheme.

01 April 2025

Benefits of being VAT registered

There are many benefits of being VAT registered for your racing activities. Find out more here

02 January 2025

Sponsorship now open to two-year-olds

Starting January 1, all yearlings turn two, opening the doors for the ROA Tote sponsorship scheme and VAT registration under the Racehorse Owners VAT Scheme.

30 December 2024

New Licensing Rules for Syndicates: What Racehorse Owners Need to Know About VAT

Anyone looking to set up a new racehorse syndicate or racing club will now need to apply for a license from the BHA. If you’re an owner dealing with VAT, here’s how these new rules might affect you

12 November 2024

THE ROA VAT SOLUTION GUIDE TO THE SALES

With the sales season in full swing, it's a good time to remind members how buying or selling a horse can impact their VAT position.

27 October 2024

Rapid results with ROA VAT Solution

The current lead time for new VAT registrations is 40 working days, however, we have been successful in registering Owners for VAT within 50% of this time frame.