Report of the Independent Accountant


The Board requires all Levy payers to file an annual return which is accompanied by a Report by an Independent Accountant.

Requirement to provide an Independent Accountant's Report 

Size of Operator    


Scope of Reporting

How Often?                                                                           

Gross profit (of Group) > £500,000

Full Independent Accountants Report for all entities


Gross profit (of Group) > £250,000

Full Independent Accountants Report for all entities


Gross profit (of Group) < £250,000

Full Independent Accountants Report for all entities

Selection of Operators will be selected at random

Failure to provide an Independent Accountant's Report 

If an Operator fails to provide an Independent Accountant's Report where such a report is required, that Operator shall be deemed to have failed to submit a properly completed Form of Declaration. In such circumstances the Chief Executive of the Board shall have power (but no obligation) to instruct an Independent Accountant to provide the required report. On receipt of the required Independent Accountant's Report, the Board will issue a Notice of Assessment, if applicable.

Agreed Upon Procedures for the Independent Accountant 

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 the Board as part of the completion of the Independent Accountant’s Report. If a particular test is not deemed to be relevant to the Operator, a statement to this effect must be included in the Report of the Independent Accountant.

Information to be included in an Independent Accountant’s Report 

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 profits from leviable bets for the Levy period and Levy payable as shown on the Form of Declaration to the Levy Summary created by the bookmaker.

3. Obtain a detailed breakdown of the Levy Summary and check that the totals provided by the Operator  agree to the Levy Summary.

4. Agree the mathematical accuracy of the profit breakdown provided by the bookmaker on the Levy Summary.

5.  Select one month and trace the total leviable bets turnover and profit to management’s records. 

6. Consider and confirm that the Operator has in place a reasonable and accurate method of distinguishing between bets placed in Great Britain and those outside for the purposes of classifying whether or not a bet is leviable,

7. Consider and confirm the reasonableness and accuracy of the treatment of linked or multi bets that are dependent on the outcome of more than one race where the races are not all taking place in Great Britain, such that the entirety of the bet is not leviable.

8.  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 fully and accurately recording turnover and profit on leviable bets, including confirmation that any pool betting operations have been fully accounted for by the pool betting operator, and provide an explanation of how the pool betting operator has satisfied themselves that all Levy payable on pool operations has been captured and included for the purposes of calculating leviable profits 

9. Obtain an analysis of turnover and gross profit figures for leviable bets by Betting Platform 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 Board would consider an unexpected variance of more than 10% of the total value to be significant.)

Last Updated: 29 March 2018