HBLB 53rd FOD - Levy Assessment Service
HORSERACE BETTING LEVY BOARD 53 FIFTY-THIRD LEVY SCHEME 1st April 2014 to 31st March 2015 FORM OF DECLARATION (‘FOD’) The Levy Scheme applies to all holders of Gambling Commission operating licences and to any other persons who may be liable to pay the Levy. Section 1 on pages 2 to 5 should be completed by all Bookmakers as appropriate. Sections 2 and 3 should be completed by an eligible Independent Accountant, on behalf of the Bookmaker. Please use continuation sheets if necessary. Please complete the form carefully in block capitals (amendments to gross profit and days traded figures will not be accepted) and return it by 28th April 2015, as required by the Levy Scheme. Tick box if cheque enclosed Amount: £………………..…………………….. (Cheques should be made payable to the "Horserace Betting Levy Board", crossed, with the licence holder's name, Levy Board reference number and Levy Scheme number quoted on the back). For office use only: _____________________________________________________________________________________________ _____________________________________________________________________________________________ _____________________________________________________________________________________________ Please return to the Levy Collection Department and remember to quote your Levy Board reference number in any communication: Horserace Betting Levy Board 5th Floor 21 Bloomsbury Street London, WC1B 3HF Tel: (020) 3603 1352 Fax: (020) 7333 0041 Monday - Friday 9.00 a.m. - 5.00 p.m. email: [email protected] website: www.hblb.org.uk Office Use Page 1 of 21 SECTION 1 Office Use ALL BOOKMAKERS – GENERAL INFORMATION Operating Licence Number ___________________________________________ Start date * End date (if applicable) ……..../…….…/…….… ……..../…….…/…….… * Enter from 1st September 2007 or the actual date trading commenced on British Horserace Betting Business if later. Operating licence name: (in full) ………………………………………………………………………………………………………………………... Operating licence address: (including full postcode) ………………………………………………………………………………………………………………………... ……………………………………………………….……………………………………………………………….. Trading name: ………………………………………………………………………………………………………………………… Company Registration No.: (if applicable) …………………………………………………………………………………………………………………….….. ………………………………………………………………………………………………………………….……... Trading address: (if different from operating licence address) ……………………………………………………….………………………………………………………….….…. .......................................................................................…………………………………….. Contact Details: Mailing name: ………………………………………..…………….. Telephone work ………………………………………………..…… Mailing address: (if different from operating licence address) ………………………………………………………. Telephone home ………………………………………………..…… Telephone mobile ………………………………………………..…… ………………………………………………………. Fax number: ………………………………………………..….. Postcode: …………………………………..………….………. Email address: ………………………………………………..…… Contact name: ........................................................... ………………………………………………………. ………………………………………………………. Page 2 of 21 SECTION 1 (continued) Office Use ALL BOOKMAKERS – GENERAL INFORMATION (continued) Bank Details: Account number: Name on Account: All Levy refunds are made by BACS transfer, therefore please provide your bank details if you think you are due a refund. ........................................................................ Sort Code: .............................................. ........................................................................ Branch: .............................................. All Bookmakers who have commenced or ceased trading during the Levy year (for definitions of Categories see next page). Date first commenced to trade as per the relevant Category below: Date ceased to trade as per the relevant Category below (if applicable): Category 1 - Cash/Betting Offices …….../………./………. Category 1 - Cash/Betting Offices …….../………./………. Category 1 - Telephone/Credit …….../………./……… Category 1 - Telephone/Credit …….../………./……… Category 1 - Internet …….../………./……… Category 1 - Internet …….../………./……… Category 1 - Other …….../………./……… Category 1 - Other …….../………./……… Category 2 Bookmakers …….../………./……… Category 2 Bookmakers …….../………./……… Category 3 Bookmakers …….../………./……… Category 3 Bookmakers …….../………./……… Category 4 Bookmakers .…….../………./……… Category 4 Bookmakers .…….../………./……… Exempt Bookmakers .…….../………./……… Exempt Bookmakers .…….../………./……… If your Levy assessment indicates that you may be due a refund, it can either be repaid into your bank account or carried forward as a contribution to future Levy Schemes. How do you wish your refund to be processed? Please tick as applicable: Credit my bank account (details above). Carry forward as a credit. Page 3 of 21 SECTION 1 (continued) Office Use ALL BOOKMAKERS - ASSESSMENT TO PAY Calculation of the Levy The Category into which each Bookmaker falls, for the purposes of the 53rd Levy Scheme, shall be determined by reference to the Betting Activity or Betting Activities undertaken. Please tick the appropriate Category of the 53rd Levy Scheme into which you fall for the period 1st April 2014 to 31st March 2015. Category 1 Bookmakers [refer to pages 7 to 15] Category 1 applies to all Bookmakers except Bookmakers who conduct British Horserace Betting Business on Horse Racecourses only (for which see Category 2), Bet-brokers/Betting Exchanges only (for which see Category 3), Spread Betting only (for which see Category 4), and Exempt (see below). Category 1 applies where a Bookmaker falls within more than one Category during the 53rd Levy Period. Bookmakers to whom Category 1 applies shall be divided into Betting Activities as set out on pages 6 to 11 of the 53rd Levy Scheme (refer to paragraphs 14 and 15, Table A of the 53rd Levy Scheme). Category 2 Bookmakers [refer to page 16] Category 2 applies to a Bookmaker who has carried on a British Horserace Betting Business at a Horse Racecourse (Licensed Track Only), including point-to-point and/or harness racing and/or trotting events, as set out on pages 11 and 12 of the 53rd Levy Scheme (refer to paragraphs 16 and 17, Table B of the 53rd Levy Scheme). Category 3 Bookmakers [refer to page 17] Category 3 applies to all Bet-brokers, including Betting Exchanges, who conduct British Horserace Betting Business only as set out on page 12 of the 53rd Levy Scheme (refer to paragraphs 18 and 19, Table C of the 53rd Levy Scheme). For definitions of Bet-broker and Betting Exchange refer to paragraphs 36(2) and 36(4) of the 53rd Levy Scheme. Category 4 Bookmakers [refer to page 17] Category 4 applies to British Horserace Betting Business arising from Spread Betting Turnover only as set out on page 12 of the 53rd Levy Scheme (refer to paragraphs 20 and 21 of the 53rd Levy Scheme). For a definition of Spread Betting Turnover refer to paragraph 36(40) of the 53rd Levy Scheme. Exempt Exempt applies to a Bookmaker who has not carried on British Horserace Betting Business at any time in the period. Page 4 of 21 SECTION 1 (continued) Office Use ALL BOOKMAKERS - DECLARATION Bookmaker’s Declaration Categories 1 to 4 and Exempt I/We hereby declare that to the best of my/our knowledge and belief the information given in this Form of Declaration is correct and, taken in conjunction with the information given in other Forms of Declaration completed by me/us, includes the whole of my/our betting business on British Horseracing under the terms of the 53rd Levy Scheme. The information given has been arrived at in accordance with the definitions in the 53rd Levy Scheme. Bookmakers (and each individual partner within a partnership) must sign and date the appropriate declaration below: Category 1, 3 and 4 Bookmakers Number of Bookmakers in Partnership (if applicable): …………...…. (if more than two please attach a continuation page) Signature of Licence Holders/Partners/Company Directors ……………………………….…………………………..……..……. Dated: ……../……./……… Ref No: ………………………/.……… Print Name ……………….………………………..………… Signature of Licence Holders/Partners/Company Directors ……………………………….………………………..….…………… Dated: ……../……./……… Ref No: ………………./…..…… Print Name ……………..…………………….……………… Category 2 Bookmakers (including point-to-point and/or harness-racing and/or trotting events) Number of Bookmakers in Partnership (if applicable): ………………. (if more than one please attach a continuation page) If you are a Category 2, Betting Activity 2.1 and/or 2.2 Bookmaker (excluding bookmakers who operate a Bet-broker or Betting Exchange and/or who undertake any other Category 1 Betting Activity), please sign here to confirm self certification. Signature of Licence Holders/Partners/Company Directors …………………………………………….……..…………….……… Date: ……../……./……… Ref No: …………………/.………… Print Names …………………….....………………….…… Exempt Bookmakers Only I hereby claim exemption from liability to the 53rd Levy Scheme on the grounds that I did not accept any bets on British Horserace Betting Business at any time in the period 1st April 2014 to 31st March 2015. Signature of Licence Holder/Company Director …….……………………………………………………………...… (if more than one Bookmaker on operating licence please attach a continuation page) Date: ……../……../…….. Ref No: ……………….………/.……… Print Name …………………………………………….…… The Board reserves the right to require its own Independent Accountant’s report should this Form of Declaration be inconsistent with previous trading history. Page 5 of 21 SECTION 2 Office Use INDEPENDENT ACCOUNTANT’S REPORT Category 1, 3 and 4 Bookmakers should pass this Form of Declaration to a person or persons, eligible under the provisions of the Companies Act 2006 for appointment as a company auditor in order that they may provide their Report in accordance with the Agreed Upon Procedures detailed on pages 19 to 21. The following Bookmakers are excluded from this requirement: (a) Category 2, Betting Activity 2.1 and 2.2 (excluding Bookmakers who operate a Bet-broker or Betting Exchange and/or who undertake any other Betting Activity to which Category 1 applies). (b) Exempt Bookmakers who hold a valid licence but have not traded on British Horserace Betting Business during this Levy Period. An Independent Accountant, qualified in accordance with the Levy Scheme requirements, must ensure pages 7 to 18 are appropriately and properly completed in block capitals as required and obtain the signature(s) of the Bookmaker(s) on page 5 where appropriate. The Independent Accountant must hold a current practising certificate issued by an accountancy body recognised by the Companies Act 2006 as eligible for appointment as a company auditor. Name: (as it appears on the Practising Certificate) ……………………………………………………………………………….................. Address: (as it appears on the Practising Certificate) ...……………………………………….…………………………………................... ………………………………………………………………………………………………………………………………..………........................... Email address: ………………….……………………………....................... Contact name: ...………………………......………........ Daytime telephone number: …………..………………...................... Fax number: ........................................…………… Accountancy body of which a member: ………………….............. Membership number: ....................................... I/We* have examined the information given in the Bookmaker's Form of Declaration with reference to the 53rd Levy Scheme, have performed the Procedures set out on pages 19 to 21 and have obtained such information and explanations as I/we* consider necessary for the purpose of these procedures. I/We* attach a separate signed letter confirming the Procedures I/we* have performed, and this letter highlights any discrepancies that were discovered. Furthermore, if applicable, my/our* report to you includes an explanation of any significant differences or trends that were identified in the course of performing these procedures. I/We* confirm that the bookmaker has / has not* utilised the default percentage, 35%, in the Levy calculation for their Betting Offices. Signature of Independent Accountant: ………………………….……………… Dated: …………../……..…../…………..….. * Please delete as applicable Please remember to obtain the Bookmaker(s) signature(s) on page 5 where appropriate. Page 6 of 21 SECTION 3 Office Use CATEGORY 1 BOOKMAKERS Please tick the appropriate Betting Activities into which you fall for the period 1st April 2014 to 31st March 2015 Refer to All Bookmakers who undertake any or more of the following Betting Activities and do not fall within Page Category 2, 3, 4 or Exempt shall fall within Category 1 and shall be defined as a “Category 1 Bookmaker” Number (paragraph 14 in the 53rd Levy Scheme). Betting Activity 1.1 applies to Bookmakers whose Gross Profit from British Horserace Betting Business (‘BHBB’) is derived from Cash Turnover only (defined in paragraph 36(15) in the 53rd Levy Scheme). [8] [9] [10] [11] [12] [13] For each betting office, when completing this Form of Declaration, Betting Activity 1.1 is subdivided into five sections namely:a) Where the Bookmaker operates more than 100 betting offices. b) Where the Bookmaker operates 100 or fewer betting offices and where the Betting Activity is undertaken throughout the Levy year and the Gross Profit on BHBB is £55,860 or more. c) As b) above but where Gross Profit on BHBB is less than £55,860. d) Where the Bookmaker operates 100 or fewer betting offices and the Betting Activity is only undertaken for part of the Levy year and where the Gross Profit on BHBB averages £153.04 or more for each day within that part of the Levy year, during which the Bookmaker has carried on such Betting Activity. e) As d) above but where Gross Profit on BHBB averages less than £153.04 for each day within that part of the Levy year, during which the Bookmaker has carried on such Betting Activity. Should it be necessary, please provide your detailed calculations on a separate sheet or via an electronic medium. (Please discuss with the Levy Collection Department if you would like more information on how to file your Levy return electronically). [14] Betting Activity 1.2 applies to Bookmakers whose Gross Profit from BHBB is derived from Telephone Turnover and/or Internet Turnover only (defined in paragraph 36(41) and 36(30) in the 53rd Levy Scheme respectively). [14] Betting Activity 1.3 applies to Bookmakers whose Gross Profit is derived from BHBB on Horse Racecourses (i.e. Licensed Track Only) in conjunction with any other betting activity (except when operating solely on Horse Racecourses for which see Category 2). [14] Betting Activity 1.4 applies to Bookmakers whose Gross Profit from BHBB is derived from operating as a Betting Exchange in conjunction with any other Category 1 activity (except when operating solely as a Betting Exchange for which see Category 3). [15] Betting Activity 1.5 applies to Bookmakers whose Gross Profit from BHBB is derived from operating as a Bet-broker in conjunction with any other Category 1 activity (except when operating solely as a Betbroker for which see Category 3). [15] Betting Activity 1.6 applies to Bookmakers whose Gross Profit from BHBB is derived from Spread Betting Turnover in conjunction with any other Category 1 activity (except when operating Spread Betting solely for which see Category 4) (defined in paragraph 36(40) in the 53rd Levy Scheme). [15] Betting Activity 1.7 applies to Bookmakers whose Gross Profit from BHBB is derived from any other Betting Activity not referred to above. Page 7 of 21 SECTION 3 (continued) Office Use CATEGORY 1 BOOKMAKERS – BETTING ACTIVITY 1.1(a) (Full Year) Betting Activity 1.1(a) (Full Year) - The Bookmaker operates more than 100 betting offices* whose Gross Profit is derived from Cash Turnover and the Betting Activity is undertaken throughout the Levy year. - If a Gross Loss is incurred for an individual betting office, then the Gross Profit for that betting office is equal to zero. - Exclude Racecourse Betting Offices (refer to Category 2). - Exclude Telephone and Internet (refer to Betting Activity 1.2). - Exclude Betting Exchange operation/Bet-broking activities (refer to Category 3 or Betting Activity 1.4 or 1.5). - Exclude Spread Betting (refer to Category 4 or Betting Activity 1.6). Gross Profit on BHBB Levy Due Total number of offices within this Betting (in whole pounds) (in pounds and pence) Activity £ £ B A B = (A × 10.75%) Office 1 Address: ………………………………………………………………………………… …………………………………………………………………………………. Office 2 Address: ………………………………………………………………………………… …………………………………………………………………………………. Office 3 Address: ………………………………………………………………………………… …………………………………………………………………………………. Totals from continuation sheets Flat Rate Rebate – Deduct from the total Levy Due a rebate equal to £758 per Betting Office in respect of the first 30 Betting Offices operated by the Bookmaker and £191 per Betting Office in respect of any additional Betting Offices operated by the Bookmaker. ( ) In determining the first 30 Betting Offices, reference shall be made to the aggregate number of Betting Offices operated by the Bookmaker for which the deduction is claimed for Betting Activity 1.1(a) (Part Year) on page 9. Totals carried forward to page 14 ________________________________________________________________________________________________________________________ * 100 Betting Offices is calculated by reference to the total number of complete ‘betting office months’ at Betting Offices operated by the Bookmaker during the year, divided by 12. If the result is 101 or greater, then the Bookmaker should be classified as having more than 100 Betting Offices. If the result is between 100 and 101 the number shall be rounded down and the Bookmaker is classified as having 100 Betting Offices or fewer. If the result is less than 100 then the Bookmaker is classified as having 100 Betting Offices or fewer. Page 8 of 21 SECTION 3 (continued) Office Use CATEGORY 1 BOOKMAKERS – BETTING ACTIVITY 1.1(a) (Part Year) Betting Activity 1.1(a) (Part Year) - The Bookmaker operates more than 100 betting offices* whose Gross Profit is derived from Cash Turnover and the Betting Activity is undertaken for only part of the Levy year. - If a Gross Loss is incurred for an individual betting office, then the Gross Profit for that betting office is equal to zero. - Exclude Racecourse Betting Offices (refer to Category 2). - Exclude Telephone and Internet (refer to Betting Activity 1.2). - Exclude Betting Exchange operation/Bet-broking activities (refer to Category 3 or Betting Activity 1.4 or 1.5). - Exclude Spread Betting (refer to Category 4 or Betting Activity 1.6). Total number of offices within this Betting Gross Profit on BHBB Levy Due Activity (Include offices commencing to trade for (in whole pounds) (in pounds and pence) the first time under this licence from 1st April 2014 to the 31st March 2015) £ £ A B B = (A × 10.75%) Office 1 Address: ………………………………………………………………………………… …………………………………………………………………………………. Trading Dates from to Inclusive total number of days in date range Office 2 Address: ………………………………………………………………………………… …………………………………………………………………………………. Trading Dates from to Inclusive total number of days in date range Totals from continuation sheets (if applicable) Flat Rate Rebate – Deduct from the total Levy Due a rebate equal to £758 per Betting Office in respect of the first 30 Betting Offices operated by the Bookmaker and £191 per Betting Office in respect of any additional Betting Offices operated by the Bookmaker, in each case pro-rated in line with the inclusive number of days falling within that part of the Levy year during which the Bookmaker has traded at that Betting Office. ( ) In determining the first 30 Betting Offices, reference shall be made to the aggregate number of Betting Offices operated by the Bookmaker for which the deduction is claimed for Betting Activity 1.1(a) (Full Year) on page 8. Totals carried forward to page 14 ________________________________________________________________________________________________________________________ * 100 Betting Offices is calculated by reference to the total number of complete ‘betting office months’ at Betting Offices operated by the Bookmaker during the year, divided by 12. If the result is 101 or greater, then the Bookmaker should be classified as having more than 100 Betting Offices. If the result is between 100 and 101 the number shall be rounded down and the Bookmaker is classified as having 100 Betting Offices or fewer. If the result is less than 100 then the Bookmaker is classified as having 100 Betting Offices or fewer. Page 9 of 21 SECTION 3 (continued) Office Use CATEGORY 1 BOOKMAKERS – BETTING ACTIVITY 1.1(b) Betting Activity 1.1(b) - The Bookmaker operates 100 or fewer betting offices whose Gross Profit is derived from Cash Turnover and the Betting Activity is undertaken throughout the Levy year and the Gross Profit on BHBB is £55,860 or more. - If a Gross Loss is incurred for an individual betting office, then the Gross Profit for that betting office is equal to zero. - Exclude Racecourse Betting Offices (refer to Category 2). - Exclude Telephone and Internet (refer to Betting Activity 1.2). - Exclude Betting Exchange operation/Bet-broking activities (refer to Category 3 or Betting Activity 1.4 or 1.5). - Exclude Spread Betting (refer to Category 4 or Betting Activity 1.6). Gross Profit on BHBB Levy Due Total number of offices within this Betting (in whole pounds) (in pounds and pence) Activity £ £ B A B = (A × 10.75%) Office 1 Address: ………………………………………………………………………………… …………………………………………………………………………………. Office 2 Address: ………………………………………………………………………………… …………………………………………………………………………………. Office 3 Address: ………………………………………………………………………………… …………………………………………………………………………………. Totals from continuation sheets (if applicable) Flat Rate Rebate – Deduct from the total Levy Due a rebate equal to £758 per Betting Office in respect of the first 30 Betting Offices operated by the Bookmaker and £191 per Betting Office in respect of any additional Betting Offices operated by the Bookmaker. ( In determining the first 30 Betting Offices, reference shall be made to the aggregate number of Betting Offices operated by the Bookmaker for which the deduction is claimed for Betting Activities 1.1(b), 1.1(c), 1.1(d) and 1.1(e) on pages 10 to 13. Totals carried forward to page 14 Page 10 of 21 ) SECTION 3 (continued) Office Use CATEGORY 1 BOOKMAKERS – BETTING ACTIVITY 1.1(c) Betting Activity 1.1(c) - The Bookmaker operates 100 or fewer betting offices whose Gross Profit is derived from Cash Turnover and the Betting Activity is undertaken throughout the Levy year and the Gross Profit on BHBB is less than £55,860. - If a Gross Loss is incurred for an individual betting office, then the Gross Profit for that betting office is equal to zero. - Exclude Racecourse Betting Offices (refer to Category 2). - Exclude Telephone and Internet (refer to Betting Activity 1.2). - Exclude Betting Exchange operation/Bet-broking activities (refer to Category 3 or Betting Activity 1.4 or 1.5). - Exclude Spread Betting (refer to Category 4 or Betting Activity 1.6). Total number of offices within this Betting Activity B = ((A × 10.75%) / £55,860) ♦ × A (♦ Calculate rate to four decimal places rounding down) This abated rate is only applicable up to a maximum of 30 Betting Offices operated by the Bookmaker and shall be calculated by reference to the aggregate number of Betting Offices operated by the Bookmaker for which the abated rate is claimed for Betting Activities 1.1(c) and 1.1(e). Office 1 Address: ………………………………………………………………………………… Gross Profit on BHBB (in whole pounds) £ Levy Due (in pounds and pence) £ A B …………………………………………………………………………………. Office 2 Address: ………………………………………………………………………………… …………………………………………………………………………………. Office 3 Address: ………………………………………………………………………………… …………………………………………………………………………………. Totals from continuation sheets (if applicable) Flat Rate Rebate – Deduct from the total Levy Due a rebate equal to £758 per Betting Office in respect of the first 30 Betting Offices operated by the Bookmaker and £191 per Betting Office in respect of any additional Betting Offices operated by the Bookmaker. ( In determining the first 30 Betting Offices, reference shall be made to the aggregate number of Betting Offices operated by the Bookmaker for which the deduction is claimed for Betting Activities 1.1(b), 1.1(c), 1.1(d) and 1.1(e) on pages 10 to 13. Totals carried forward to page 14 Page 11 of 21 ) SECTION 3 (continued) Office Use CATEGORY 1 BOOKMAKERS – BETTING ACTIVITY 1.1(d) Betting Activity 1.1(d) - The Bookmaker operates 100 or fewer betting offices and the Betting Activity is only undertaken for part of the Levy year and where the Gross Profit on BHBB averages £153.04 or more for each day within that part of the Levy year, during which the Bookmaker has carried on such Betting Activity. - If a Gross Loss is incurred for an individual betting office, then the Gross Profit for that betting office is equal to zero. - Exclude Racecourse Betting Offices (refer to Category 2). - Exclude Telephone and Internet (refer to Betting Activity 1.2). - Exclude Betting Exchange operation/Bet-broking activities (refer to Category 3 or Betting Activity 1.4 or 1.5). - Exclude Spread Betting (refer to Category 4 or Betting Activity 1.6). Total number of offices within this Betting Gross Profit on BHBB Levy Due Activity (Include offices commencing to trade for (in whole pounds) (in pounds and pence) the first time under this licence from 1st April 2014 to the 31st March 2015) £ £ A B B = (A × 10.75%) Office 1 Address: ………………………………………………………………………………… …………………………………………………………………………………. Trading Dates from to Inclusive total number of days in date range Office 2 Address: ………………………………………………………………………………… …………………………………………………………………………………. Trading Dates from to Inclusive total number of days in date range Totals from continuation sheets (if applicable) Flat Rate Rebate – Deduct from the total Levy Due a rebate equal to £758 per Betting Office in respect of the first 30 Betting Offices operated by the Bookmaker and £191 per Betting Office in respect of any additional Betting Offices operated by the Bookmaker, in each case pro-rated in line with the inclusive number of days falling within that part of the Levy year during which the Bookmaker has traded at that Betting Office. In determining the first 30 Betting Offices, reference shall be made to the aggregate number of Betting Offices operated by the Bookmaker for which the deduction is claimed for Betting Activities 1.1(b), 1.1(c), 1.1(d) and 1.1(e) on pages 10 to 13. Totals carried forward to page 14 Page 12 of 21 ( ) SECTION 3 (continued) Office Use CATEGORY 1 BOOKMAKERS – BETTING ACTIVITY 1.1(e) Betting Activity 1.1(e) - The Bookmaker operates 100 or fewer betting offices and the Betting Activity is only undertaken for part of the Levy year and where the Gross Profit on BHBB averages less than £153.04 for each day within that part of the Levy year, during which the Bookmaker has carried on such Betting Activity. - If a Gross Loss is incurred for an individual betting office, then the Gross Profit for that betting office is equal to zero. - Exclude Racecourse Betting Offices (refer to Category 2). - Exclude Telephone and Internet (refer to Betting Activity 1.2). - Exclude Betting Exchange operation/Bet-broking activities (refer to Category 3 or Betting Activity 1.4 or 1.5). - Exclude Spread Betting (refer to Category 4 or Betting Activity 1.6). Total number of offices within this Betting (Include offices commencing to trade for the first time under this licence from 1st April 2014 to the 31st March 2015) Activity ♦ B = ((A x 10.75%) / £153.04 × N ) × A ♦ Calculate rate to four decimal places rounding down Gross Profit on BHBB Levy Due This abated rate is only applicable up to a maximum of 30 Betting (in whole pounds) (in pounds and pence) Offices operated by the Bookmaker and shall be calculated by £ £ reference to the aggregate number of Betting Offices operated by the Bookmaker for which the abated rate is claimed for Betting A B Activities 1.1(c) and 1.1(e). Office 1 Address: ………………………………………………………………………………… …………………………………………………………………………………. Trading Dates from to Inclusive total number of days in date range N Office 2 Address: ………………………………………………………………………………… …………………………………………………………………………………. Trading Dates from to Inclusive total number of days in date range N Totals from continuation sheets (if applicable) Flat Rate Rebate – Deduct from the total Levy Due a rebate equal to £758 per Betting Office in respect of the first 30 Betting Offices operated by the Bookmaker and £191 per Betting Office in respect of any additional Betting Offices operated by the Bookmaker, in each case pro-rated in line with the inclusive number of days falling within that part of the Levy year during which the Bookmaker has traded at that Betting Office. In determining the first 30 Betting Offices, reference shall be made to the aggregate number of Betting Offices operated by the Bookmaker for which the deduction is claimed for Betting Activities 1.1(b), 1.1(c), 1.1(d) and 1.1(e) on pages 10 to 13. Totals carried forward to page 14 Page 13 of 21 ( ) Office Use SECTION 3 (continued) CATEGORY 1 BOOKMAKERS (Summary) Gross Profit on BHBB (in whole pounds) £ Betting Activity 1.1(a) Full year - Cash turnover Totals brought forward from page 8 i Betting Activity 1.1(a) Part year - Cash turnover Totals brought forward from page 9 ii Betting Activity 1.1(b) Cash turnover Totals brought forward from page 10 iii Betting Activity 1.1(c) Cash turnover Totals brought forward from page 11 iv Betting Activity 1.1(d) Part year -Cash turnover Totals brought forward from page 12 v Betting Activity 1.1(e) Part year -Cash turnover Totals brought forward from page 13 vi Betting Activity 1.1 – Sub-total Total Levy Due cannot be below £nil Levy Due (in pounds and pence) £ Total of i, ii, iii, iv, v and vi Betting Activity 1.2 - Telephone turnover (As defined in paragraph 36(41) of the 53rd Levy scheme). If a Gross Loss is incurred, then the Gross Profit is equal to zero. × 10.75% = Betting Activity 1.2 - Internet turnover (As defined in paragraph 36(30) of the 53rd Levy scheme). If a Gross Loss is incurred, then the Gross Profit is equal to zero. × 10.75% = Betting Activity 1.3 – On-Course On-course Levy liability to be included only where undertaken in conjunction with any other Betting Activity (see page 16). Insert Levy liability directly on to page 18 (Row b) (using details from page 16) Betting Activity 1.4 - Betting Exchange operation In conjunction with any other Betting Activity (as defined in paragraph 36(4) of the 53rd Levy scheme). If a Gross Loss is incurred, then the Gross Profit is equal to zero. Where BHBB is derived solely from the operation of a Betting Exchange refer to page 17. Totals carried forward to page 15 Page 14 of 21 × 10.75% = SECTION 3 (continued) Office Use CATEGORY 1 BOOKMAKERS (Summary) (continued) Gross Profit on BHBB (in whole pounds) £ Totals carried forward from page 14 Betting Activity 1.5 - Bet-broker operation In conjunction with any other Betting Activity (as defined in paragraph 36(2) of the 53rd Levy scheme). If a Gross Loss is incurred, then the Gross Profit is equal to zero. Where BHBB is derived solely from operating as a Bet-broker refer to page 17. × 10.75% = × 2.15% = × 10.75% = Betting Activity 1.6 - Spread Betting Turnover In conjunction with any other Betting Activity (as defined in paragraph 36(40) of the 53rd Levy scheme). If a Gross Loss is incurred, then the Gross Profit is equal to zero. Where BHBB is derived solely from Spread Betting refer to page 17. Betting Activity 1.7 - Other BHBB gross profit not included in the Betting Activities referred to above Any other betting activity not within Betting Activities 1.1 to 1.7 above. Note - If a Gross Loss is incurred, then the Gross Profit is equal to zero. Total Category 1 Bookmaker Levy due carried forward to page 18 (Row a) Page 15 of 21 Levy Due (in pounds and pence) £ SECTION 3 (continued) Office Use RACECOURSE BETTING ACTIVITY Levy Due £ Category 1 and Category 2 Bookmakers Betting Activity 1.3 and 2.1 - Bookmakers who have conducted BHBB on Horse Racecourses only and Category 1 Bookmakers who have also conducted BHBB on Horse Racecourses. - Consolidate all Racecourse Pitches and Racecourse Offices. - Exclude point–to-point, harness-racing, and/or trotting events. Annual fixed fee for all Racecourse Bookmakers (including Epsom “Hill”) Fixed Fee £234 Category 1 Bookmakers transfer the above total to Betting Activity 1.4 on page 18 (Row b) Category 2 Bookmakers transfer the above total to Category 2 on page 18 (Row c) unless you undertake any of the following “other On-Course Betting Activities” referred to below whilst on a British Racecourse. Other On-Course Betting Activities Tick as applicable Do you operate a Betting Exchange whilst on course? (If YES insert Gross Profit on BHBB transactions into Betting Activity 1.4 page 14 ) Do you operate as a Bet-broker whilst on course? (If YES insert Gross Profit on BHBB transactions into Betting Activity 1.5 page 15 ) Do you accept any other bets arising from Category 1 activities e.g. telephone bets whilst on course? (If YES insert Gross Profit on BHBB transactions into Betting Activity 1.2 on page 14) YES NO YES NO YES NO Should you undertake any of the above “other On-Course Betting Activities” in addition to conducting BHBB whilst on British Racecourses, your Bookmaking status changes from Category 2 to Category 1, thereby your Form of Declaration becomes subject to an Independent Accountant’s Report, as detailed on page 6. Where “other On-Course Betting Activities” applies to your bookmaking operation, transfer your Betting Activity 2.1 totals to Betting Activity 1.3 on page 18 (Row b) and complete the relevant Category 1 Betting Activity on page 14. Betting Activity 1.3 and 2.2 Bookmakers who conduct British Horserace Betting Business (‘BHBB’) exclusively on point-to-point, harness-racing, and/or trotting events and no other BHBB and Category 1 Bookmakers who have also conducted BHBB on point-to-point, harness-racing, and/or trotting events. Page 16 of 21 Fixed Fee £187 Transfer to page 18 (Row c) SECTION 3 (continued) Office Use BETTING EXCHANGE OPERATION, BET-BROKERS AND SPREAD BETTING Betting Activity 3.1 and 3.2 – Betting Exchange operation & Betbrokers Gross Profit on BHBB (in whole pounds) £ Levy Due (in pounds and pence) £ Betting Exchange operation & Bet-brokers For the purpose of calculating the Levy payable under Category 3 of the Levy Scheme, each Bet-broker shall pay an amount equivalent to 10.75% of Gross Profits made on BHBB derived from Betting Exchange operation & Bet-broking Turnover (see paragraphs 36(4 & 2) in the 53rd Levy Scheme). × 10.75% = If a Gross Loss is incurred, then the Gross Profit is equal to zero. Totals carried forward to page 18 (Row d) Gross Profit on BHBB (in whole pounds) £ Category 4 - Spread Betting Spread Betting For the purpose of calculating the Levy payable under Category 4 of the Levy Scheme, each Bet-broker shall pay an amount equivalent to 2.15% of Gross Profits made on BHBB derived from Spread Betting (see paragraph 36(40) in the 53rd Levy Scheme). If a Gross Loss, then the Gross Profit is equal to zero. Totals carried forward to page 18 (Row e) Page 17 of 21 × 2.15% = Levy Due (in pounds and pence) £ SECTION 3 (continued) Office Use ALL BOOKMAKERS (Summary) Gross Profit on BHBB (in whole pounds) £ Levy Due (in pounds and pence) £ Category 1 Betting Activity 1.1 to 1.7 totals (excluding 1.3) Gross Profit and Levy Due totals brought forward from page 15. a Betting Activity 1.3 On-Course (Include only where undertaken in conjunction with any other Category 1 activity, if not complete Category 2 below.) b Total Category 1 Bookmakers Gross Profit and Levy Due total of a and b above. Category 2 On-course Bookmakers Levy Due totals brought forward from page 16 (Betting Activity 2.1 & 2.2). (Include only when not undertaken with any other BHBB activity.) c Category 3 Bet-brokers and/or Betting Exchange operation Gross Profit and Levy Due totals brought forward from page 17 (Betting Activity 3.1 & 3.2). d Category 4 Spread Betting Gross Profit and Levy Due totals brought forward from page 17. e Total of British Horserace Betting Business Gross Profit / Levy Due (round down to the nearest pound) Deduct: Total of Advance Payments Balance Payable / (Repayable) (Please enter the value of cheque enclosed on page 1 if applicable). Note that all refunds will be paid via BACS; therefore, if you may be due a refund, please ensure you enter your bank details on page 3. Amendments to gross profit and days traded figures will not be accepted. All sections are to be completed in capitals as appropriate and in accordance with the Levy Scheme. Page 18 of 21 The Agreed Upon Procedures, which follow, are for use by the Independent Accountant in preparing his/her Report to the Horserace Betting Levy Board. This work is designed to be performed as an Agreed Upon Procedures (AUP) engagement in accordance with the International Standard on Related Services (ISRS) 4400 “Engagements to perform agreed-upon procedures regarding financial information”. We therefore request that any exceptions identified during the performance of these procedures are formally reported to HBLB as part of the completion of the Independent Accountant’s Report. If a particular test is not deemed to be relevant to the bookmaker, a statement to this effect must be included in the Report of the Independent Accountant. Procedures for the Independent Accountant Procedures for all Bookmakers 1. State whether your firm act as the statutory auditors (in an independent engagement) for the company or group that has produced the Horserace Betting Levy Board (HBLB) Form of Declaration being reviewed. 2. Agree the total of British Horserace Betting Business gross profit and Levy payable as shown on the Form of Declaration to the Levy Summary created by the bookmaker, including the split between all Betting Activities (i.e. Cash, Telephone, Internet, Betting Exchange business and On-Course trading). 3. Obtain a detailed breakdown of the back-up for the Levy Summary, including a list of all Licensed Betting Offices (LBOs), and check that the totals provided by Betting Activity agree to the Levy Summary. 4. Agree the mathematical accuracy of the gross profit breakdown provided by the bookmaker on the Levy Summary. 5. Identify the total number of LBOs that were trading for either a full year or only part of the year and agree these totals to the Form of Declaration. 6. For a sample of LBOs that only traded for part of the year (the lower of 5 LBOs or all of the bookmaker’s LBOs that only traded for part of the year), agree to management’s records the date they started or ceased trading and check that this has been properly reflected in the breakdown that supports the Levy Summary. 7. State whether the bookmaker has utilised the default percentage of 35% in the levy calculation for their LBO shop or estate. Procedures 8 to 13 - To be undertaken for a bookmaker where the gross profit on British Horserace Betting Business can be accurately determined from the bookmaker’s accounting records 8. For each Betting Activity other than LBOs, select one month and trace the total British Horserace Betting Business turnover and gross profit to management’s records. 9. EITHER: 9(a). Perform a walkthrough of one British horseracing bet and one non-British horseracing bet, from the original betting transaction to management’s final gross profit data, agreeing the classification of the stake and payout within the gross profit data. (It is recognised that in performing this test the original betting transaction may/will be aggregated within the bookmaker’s accounting records.) OR: 9(b). Review the internal controls over the completeness of turnover and determine whether they are adequate and test that they were operating during the Levy period. Confirm that the accounting system provides a sound basis for recording turnover and gross profit on British Horserace Betting Business. Page 19 of 21 Procedures for the Independent Accountant (continued) 10. Obtain an analysis of turnover and gross profit figures for British Horserace Betting Business by Betting Activity for the current and previous year to 31st March. Compare the trends observed in the analysis to expectations based on your knowledge of the business. Identify any differences to expectations and obtain explanations from management for any unusual or significant variations. (The Horserace Betting Levy Board would consider an unexpected variance of more than 10% of the total value to be significant.) 11. Where a Betting Activity has started or ceased to be liable for Levy during the year: a. review the monthly turnover and gross profit figures to assess whether the trends seen are in line with expectations and explanations received from management; and b. from winning British horseracing betting transactions select a sample of 5 bets placed on the day before the change and 5 placed on the day after the change. For each of the items selected, check that they have been properly included or excluded from the Levy calculation. 12. For a sample of LBOs (as specified in the table below), agree their total British Horserace Betting Business turnover and gross profit to management’s records. Total number of LBOs operated by the Sample size bookmaker (Subject to a minimum sample of 1 LBO) 1 to 19 20 to 39 40 to 100 Greater than 100 50% of the LBO estate 10 LBOs 25% of the LBO estate 25 LBOs 13. For the same sample of LBOs identified for Procedure 12 above, check that each LBO is appropriately classified as: a. being above or below the gross profit threshold; and b. trading for the full year or part of the year. Procedures 14 to 20 – To be undertaken for a bookmaker where the Gross Profit on British Horserace Betting Business cannot be accurately determined from the bookmakers’ accounting records 14. In respect of those Betting Activities for which the bookmaker is unable to accurately determine the gross profit derived from British Horserace Betting Business, confirm that the default 35% of the total gross profit (excluding machines) of each Betting Activity has been adopted in respect of British Horserace Betting Business. 15. For each Betting Activity other than LBOs, select one month and trace the total Betting Business turnover and gross profit to management’s records. 16. EITHER: 16(a). Perform a walkthrough of one bet, from the original betting transaction to management’s final gross profit data, agreeing the classification of the stake and payout within the gross profit data. (It is recognised that in performing this test the original betting transaction may/will be aggregated within the bookmaker’s accounting records.) Page 20 of 21 Procedures for the Independent Accountant (continued) 16(b). Review the internal controls over the completeness of turnover and determine whether they are adequate and test that they were operating during the Levy period. Confirm that the accounting system provides a sound basis for recording turnover and gross profit. 17. Obtain an analysis of turnover and gross profit figures for Betting Business for the current and previous year to 31st March. Having applied the HBLB default percentage to gross profit, compare the trends observed in the analysis to expectations based on your knowledge of the business. Identify any differences to expectations and obtain explanations from management for any unusual or significant variations. (The Horserace Betting Levy Board would consider an unexpected variance of more than 10% of the total value to be significant.) 18. Where a Betting Activity has started or ceased to be liable for Levy during the year: a. review the monthly turnover and gross profit figures to assess whether the trends seen are in line with expectations and explanations received from management; and b. from winning bets select a sample of 5 betting transactions placed on the day before the change and 5 placed on the day after the change. For each of the items selected, check that they have been properly included or excluded from the Levy calculation. 19. For a sample of LBOs (as specified in the table below), agree their total Betting Business turnover and gross profit to management’s records. Total number of LBOs operated by the Sample size bookmaker (Subject to a minimum sample of 1 LBO) 1 to 19 20 to 39 40 to 100 Greater than 100 50% of the LBO estate 10 LBOs 25% of the LBO estate 25 LBOs 20. For the same sample of LBOs identified for Procedure 19 above, check that the correct default percentage has been utilised in the Levy calculation and that each LBO is appropriately classified as: a. being above or below the gross profit threshold; and b. trading for the full year or part of the year. Page 21 of 21
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