Jockeys will be required to start paying tax on their income once they have had 20 rides. They need to register as self-employed (within three months) and complete self-assessment returns annually.
For Apprentice and Conditionals, income from all HOME (for their retained trainer) rides is treated as employment income and they will be taxed at source as part of PAYE. Income from all AWAY (for other trainers) rides is treated as self-employment income.
Trainers will deal with the VAT element for Apprentices/Conditionals. When apprentice and conditional jockeys become a full jockey, they should seek the advice of an accountant as to whether they should register for VAT or not. It is essential that jockeys inform Weatherbys Bank when they register or de-register for VAT.
There is a cost to employing an accountant but we strongly recommend that jockeys do this as soon as possible – it is likely the cost of using an accountant would be more than offset by the savings they will make for jockeys. Even if jockeys have only a handful rides, it is possible that an accountant would be able to get tax relief on expenses/stable wages. It is up to jockeys who they appoint but it has been found to be beneficial to appoint an accountant with a knowledge of racing and your colleagues may be able to recommend one. Alternatively, jockeys can consult the list below of racing accountants who have consented to their details being shared.