Stables, Yards, Arenas and

BEWARE THE TAX IMPLICATIONS OF HORSES & LIVERY

For many people, owning a horse or pony is no different to owning a boat or a classic car for personal use or enjoyment, with no taxation consequences.

But it is an expensive business. A 2019 survey by the British Equestrian Trade Association (BETA) cited the average spend on livery at £221/month, and the cost of grazing only for a hardy pony at around £125/month. More recently, Money Saving Expert in its survey of spend on ‘pets’ highlighted keeping a horse as the most expensive. Its August 2021 poll found that 25% of respondents owning horses spent over £5,000/annum on them with 42% spending between £2,001 and £5,000/annum. That would appear to make livery and the letting of loose boxes and grazing an attractive proposition for land owners or farmers looking for an additional income stream. But these can be problem areas for tax. There is a fine line between having one or a few spare loose boxes to rent and the provision of livery, where there may be more complex tax implications. Nick Hart, VAT Director, Saffery Champness, and a member of the firm’s Landed Estates and Rural Business Group comments: “The VAT position for livery businesses is determined on the facts of each case, addressing both contracts with customers and the balance of services. These could cover grazing, stabling and ‘keep’ for example. “Grazing rights on their own can be zero-rated (0% VAT) as animal feed, and stabling can be exempt from VAT, but standard-rated (currently 20%) if the stables in their own right have been ‘opted to tax’ or are part of a larger holding that has been, while ‘keep’ or ‘care’ is also a supply subject to the standard rate of VAT. “The possibilities are complex and HMRC guidance is not always clear. For example, for DIY livery, where there are elements of stabling and grazing but no ‘keep’, the official view has been that there are two separate supplies at different VAT rates and the consideration can be apportioned. Where there is ‘keep’ also then this is a single supply that is standard-rated with no apportionment. HMRC is often interested in land-related supplies where other services are also being provided and stabling and livery is no exception. Should HMRC become aware that the customer receives other benefits along with the land, they would generally be quick to suggest the service should all be standard-rated.” Due to the complexities and to a degree HMRC’s sometimes uncertain position, those supplying ‘keep’ should maintain records for feedstuffs and unopted stabling, in case there is an opportunity in the future to reclaim VAT overpaid on these. Broadly, the VAT position for those providing stabling, grazing or livery is as follows: • The letting of a stable alone is exempt from VAT, subject to the ‘option to tax’. • Stabling plus livery might be

VAT exempt, only if the stabling is the predominant element. • DIY livery is two supplies (of zero-rated feed and exempt or

standard-rated stabling) and charges need to be appropriately apportioned. • The supply of ‘keep’ (or care or livery services) including stabling and feed is one standard-rated supply with no apportionment. The receipt of such income will also be potentially liable for income tax and should be reported on the tax return of the appropriate individual or business, and there may also be inheritance tax implications. Nick Hart says: “Where land is let to others to graze their horses, this income will potentially be liable to income tax. This may not increase your income tax burden significantly, but it may impact on other arrangements such as inheritance tax, particularly if the land is let or used as part of an agricultural holding. “Such property would normally be fully relievable for inheritance tax, but only if the property is used for agricultural purposes. Grazing by cattle or sheep would enable the land to qualify, but it is unlikely that horses grazing the land would. Be warned therefore that a little extra income now might add up to a costly capital tax bill in the future.” Nick Hart adds: “The system is complex and there are a number of anomalies within it. We would therefore urge anyone with concerns about VAT or income tax in relation to equestrian issues to speak to their professional adviser.”

www.saffery.com

NEW: STRAWMAX

STRAW PELLET BEDDING FOR HORSES

Strawmax straw pellets are a great new equine bedding created by Bedmax, the UK’s leading manufacturer of equine bedding.

Strawmax is a very timely, cost effective new option for owners at a time of steeply rising costs. It’s made from locally sourced high quality straw, and it combines all the equine health benefits you would expect from Bedmax but with exceptional ease of use and economy. And unlike straw, Strawmax comes in handy 15kg bags through your local equine retailer, so it’s always available, reliably consistent, and easy to handle, store and use in the stable. Key benefits for Horses For all conscientious owners, the most important deciding factor when considering Strawmax pellets is that they help you create a healthy and hygienic stable environment for your horses. • Minimal airborne dust • Huge volume and depth • Comfort and support • Super absorbent • Suppresses odour Key benefits for Owners Strawmax pellets are especially helpful for time-pressed, valueconscious owners. They’re very long-lasting, they isolate urine in small patches which minimises waste, and that makes them exceptionally affordable. • Very easy to use • Low on waste • Big on economy • Small muckheap • Fast composting.

Find out more at www.strawmax.co.uk

All Bedmax beddings including Strawmax now come with the new BETA NOPS Bedding logo. You can read more about what this means for you and your horses at: bedmaxshavings.com/ nops

6-8 bags of Strawmax make a full bed 20-24cms deep in a standard 12 x 12 stable. A bucket of water per bag will swell them to 3 x volume but still leave them super absorbent to soak up urine. Maintaining an optimum bed should only require about 1 bag per week.

FIRST COMPANY ACCREDITED: BETA’S NEW BEDDING INDUSTRY MANUFACTURING STANDARD

Bedmax has become the first equine bedding company to become BETA NOPS accredited. The British Equestrian Trade Association (BETA) has been planning the scheme since January 2020, which aims to minimise the risk of contamination by naturally occurring prohibited substances (NOPS) in equine bedding products.

Carrying this badge certifies that all products from BEDMAX’s range, which includes Bedmax, Littlemax, and Stockmax shavings and its recently launched Strawmax straw pellet bedding, conform to the current best practice in minimising the risk of contamination by NOPS. Contamination by naturally occurring prohibited substances has been an ongoing problem with performance horses for some

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time and the FEI takes a no tolerance stance to prohibited substances. The list of prohibited substances is long, and the rules can be difficult to navigate. The problem often lies in inadvertent crosscontamination from external sources which is not just a problem for professional riders, but amateur and hobby riders too. Prohibited substances in bedding can be absorbed into a horse’s or pony’s system if contaminated bedding becomes mixed up in hay, for example, and even tiny quantities can be detected and result in a positive doping test. Spot testing is much more common at all levels of professional and amateur competition in all disciplines, and riders need to be vigilant as fines can still be administered if they are unable to prove that all preventative measures have been taken. BETA first launched its NOPS Code for Equine Feed in response to the increase in incidents in positive doping tests. Further research revealed that bedding is also a common source of cross-contamination, and so the BETA NOPS Code for Equine Bedding was set up to recognise manufacturers that conform to the current best practice in minimising the risk of contamination by NOPS. Claire Williams, Executive Director of BETA said, “I am so pleased to see the years of work on this scheme coming to fruition. It seemed logical to develop this programme to complement the NOPS Feed code, when bedding and feed are so closely associated. Working alongside our independent auditors, Kiwa, we have produced a scheme that adds another level of risk assessment to bedding production that I believe is unique. “Congratulations are due to Bedmax on auditing successfully to the standard. I know how much work they have put in to ensuring that they meet the standards that we have set.” Carrying the NOPS logo also assures customers that equine bedding products are marketed fairly and legally. It means that claims are evidenced and offers peace of mind that bedding products receive the same amount of scrutiny for the risk of prohibited substances as feed. For Tim Smalley, Managing Director at Bedmax, NOPS accreditation is a landmark in the bedding company’s 21-year commitment to excellence. “This is a very positive step forward for both Bedmax and the equine industry, especially professional riders and trainers. Unlike feeds and supplements, you don’t get a list of ingredients on a bag of bedding so it’s important to know that the manufacturer has taken steps to ensure the product does not contain prohibited substances. “I am delighted that we are the first bedding company to carry the BETA NOPS badge and I hope this will help all equestrian organisations in their drive to make competition at all levels as clean and fair as possible. We pride ourselves on providing customers with the highest quality of equine bedding, and this is a milestone achievement for us as a company.”

www.bedmaxshavings.com

Tim Smalley, Managing Director at Bedmax

Shine a light on your horse’s training...

This brand new lighting product from HorseLight, the High Bay Arena Light, is specifically designed for outdoor and indoor arena lighting, providing unbeatable daylight conditions for your horse’s training.

HorseLight is an advanced form of light therapy technology which is worlds apart from ordinary sports arena lighting. It is scientifically proven to enhance the health and wellbeing of horses by emitting a very specific spectrum of blue light. Horses can work more effectively under blue light, have faster recovery times, and their improved daytime alertness can leave them feeling more awake, more focused, and importantly, much happier. An arena requires a crisp light output, especially when working through movements, using Cavaletti poles or jumping. This durable and eco-friendly arena lighting system from HorseLight delivers this and much more in a user-friendly format. It is suitable for new builds as well as replacement of existing lighting systems, giving you reduced electricity costs and carbon footprint compared to standard florescent or tungsten lighting. It is fully waterproof and does not require a timer, it can be simply turned on and off at the switch and with a lifespan of 50,000 hours will give you years of bright daylight working conditions.

www.horselight.co.uk HorseLight High Bay Arena Light £350 (+vat)

TAKE GOOD CARE OF YOUR ARENA SURFACE

The SCH Supplies Multi Surface Manége Groomer (MSMGT) is ideal for both sand and fibre, and sand and rubber surfaces.

Two rows of spring tines lift the sand whilst the two crumb rollers re-distribute the material evenly and leave the manège level, ready for work. The MSMGT is height adjustable to allow you to get the correct depth for your surface. Once set, it can remain fixed at the height and there is no need to reset it prior to each use. This is because the wheels can be easily lowered to allow you to transport and store the groomer. The groomer is available as a towed or mounted version with the option of three different sizes 48”, 60” or 72” wide. Each version all perform the same task. SCH manufactures over 250 quality British built machines that can be towed behind a tractor, ride-on mower or ATV. For a free 80 page brochure featuring all the designs and variations, including a variety of hitches for your towbar, contact SCH.

www.schsupplies.co.uk

MAKE YOUR TACK ROOM More sustainable...

In the UK, the equestrian industry contributes over £4 billion to the economy each year, a large percentage of which is spent on equestrian equipment.

Like a lot of us you may have just had a Spring-clean clear out of your tack room so do you have any unwanted items that are still in good condition? Instead of throwing them away why not start on your journey to being greener by selling your unwanted items on Tack Room Trading for free! Tack Room Trading is an online marketplace for all things equestrian, pre-owned and new, with sustainability at the heart at the company. Jodie Jago, founder of Tack Room Trading said: “As a horse owner myself with three children who all compete and ride,

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I have found that the second-hand market for equestrian items is my go-to place as this helps me feel like I am doing my bit for the environment.” Tack Room Trading will help you to become a more sustainable rider when you sell your unwanted items on the platform and search for items you need. Three things that you can do to help reduce your carbon footprint

• Reduce the demand for a constant supply; we can do this by reducing the amount of new products that we buy

each year. The saying of buy cheap buy twice comes to mind, investing in products that are a higher quality means that they are more likely to last the test of time.

We can also reduce the need to purchase by taking proper care of the products that you buy, thus extending their expected lifespan.

• Reuse items, this can be done very easily by purchasing second-hand as opposed to

buying new. Do you have old items that you want to get rid of, instead of just disposing of any unwanted items, if they are still in useable condition; why not sell them on Tack Room

Trading? This will earn you some cash and reduce the amount of waste being sent to landfill.

• Recycle your unwanted items if they are no longer in a resalable condition, instead of just throwing them away where they will end up in

landfill. There are several fashion retailers that now offer to take your unwanted garments or you can search online for the nearest textile recycling facility.

• Another way that you could help to be greener should you have to purchase a brand new product is by investigating which companies are making a conscious effort to reduce their impact on the

environment. By choosing to buy from one of these companies you would in turn be helping to reduce your own carbon footprint, especially if their packaging is recyclable and they use recycled plastic in the manufacture of their products.

www.tackroom trading.co.uk After an enjoyable ride with your horse, it is important that your faithful companion can return and rest inside their stable in complete serenity and security.

To guard and adequately protect them, it is wise first of all to take into consideration the greatest threats to the safety of horses: theft and fire. It may indeed be daunting to think that such illfated events could occur, though prevention is certainly better than cure. While they do not guarantee the complete protection of your equine companions and of your yards, the following safety measures will give you some peace of mind when around or away from your livery stable and horses.

No smoking policy Cigarettes do not belong inside a livery stable. Barns are packed with flammable material that can foster a fire, and hot ashes can easily instigate a blaze. Therefore, make sure that a strict no smoking policy is in place on the premises and avoid using any kind of heat sources (especially unprotected, naked flames). Additionally, ensure the muck heap is not in close proximity to stables and barns, and sweep any cobwebs that may be hanging in or around the stable.

Fire extinguisher This particular suggestion may sound pretty banal, but it is often the most obvious safety measures that end up being overlooked. Fire extinguishers have a crucial role in fighting flames and should therefore be stored properly. In the event of a fire, if there is no opportunity to safely tame the flames with the extinguisher, call 999 immediately and evacuate the horses closest to the blaze first. As you wait for the fire brigade, ensure that your horses are kept in a secure place; if agitated or left loose, they may pose further danger or attempt to re-enter the stable. Vary your timetable Alongside precautions against fire hazards, it is also important to take measures to deter any illintentioned passer-by from stealing costly equipment or, even worse, your equine friends. One simple yet effective method is to mix up your schedule and

MEASURES FOR YOUR LIVERY YARD LIVERY STABLE SECURITY

to visit your stable at different times during the week. This way, the yard will look constantly busy, thus hopefully discouraging any potential thief that is hoping to access your barn. Sensor-operated security lights If anyone does attempt to take a closer look at your animals and possessions, sensor-operated security lights are an excellent way to make these intruders more visible. It will be easier to keep an eye on them and monitor their movements. What is more, the floodlights may give them ‘stage fright’ and encourage them to leave the premises. Burglar alarms In the event of a particularly obstinate intruder, burglar alarms can be useful to signal that someone has broken into your stable. Acoustic alarms may come in handy, especially if there are people that live nearby and who will be able to warn you. It may therefore be good to meet and make friends with your neighbours: not only will it benefit your social life, but it also means that there will always be an extra pair of eyes and ears looking after your yard and horses. Warning signs It may also be sensible to put up warning signs around your barn to let would-be thieves know that they are being watched. Direct attention to the fact that there is a security system in place and that the area is kept constantly under surveillance –it may just do the trick. Keep items out of sight Make sure to lock away your possessions and be careful not to leave tools lying around, such as ladders and wheelbarrows, that may aid intruders in carrying out their misdeeds. Also, while many horse owners tend to padlock only one side, some gates can be lifted too. To keep your equines extra safe, think about attaching an additional chain and padlock at the hinged end. Horse identification Evidence of indelible identification tags on horses may function as an excellent deterrent too. Thieves are likely to dismiss equines that have been freezemarked or microchipped, as they are not as difficult to retrace if they go missing. While freeze-marking has become uncommon nowadays, microchipping is currently a legal requirement much like with dogs. Generally inserted in the horse’s crest, a microchip contains the animal’s details and – when scanned – will help identify a lost or stolen equine. Ensure that details on the database are always up to date and ask your vet to scan the microchip during visits to check it is still working. Finally, horse passports (which all equines should have under the Horse Passports Act 2003) may also be helpful to retrieve the missing animal. While not a permanent tag, it is indispensable to have if you ever want or need to sell or pass on your horse. Therefore, ensure that your horse’s passport is stored safely so that it does not risk getting stolen with your equine companion. As with everything in life, there is no hiding that things can go wrong without warning. It is sensible to always be covered by a livery yard insurance package that can provide financial support when undesired eventualities occur. While it will never fill the void of losing your equine friend, it can be a vital helping hand when having to deal with the aftermath of a crime or of other unpleasant episodes. However, by adopting the security measures mentioned above, you can rest assured that both your stable and horses are on the right track towards being as safe as they can be.

www.cliverton.co.uk