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PAYE70275 | PAYE operation: specific employments: racehorse trainers / stud farm employees

From HM Revenue & Customs · PAYE Manual

Additional payments by employers and horse owners

Where an employee of a racehorse trainer or stud farm receives payments in addition to wages (see the Employment Income Manual (EIM) at EIM68500), these are assessable as employment income.

Payments made by the employer

Payments may be made

  • By the employer on his or her own behalf
    Or

  • By the employer on behalf of a third party such as a racehorse owner

Examples of payments are

  • A percentage of prize money for a winning horse

  • A percentage of racehorse stake money

  • Fees for leading a horse between stable, stud farm or station

  • Presents for mares in foal

  • Groom fees

Such payments should be taxed under PAYE by the employer in the normal way along with the wages or salary of the employee. The payments are also liable to National Insurance contributions. Further information can be found in NIM02300.

Horse owner makes payments direct to employee of a trainer or stud farm

Where payments are made direct to an employee by the horse owner, the owner is required to operate PAYE. The employer is liable for Class 1 NIC on such payments and the owner should advise the employer of the payments.

In any case of difficulty, consult .