Declaring income form gambling on tax return - help please

[meemok]

Site Team, please move to the correct forum if this is not the place.

 

I would like to know do I have to declare gambling winnings (casino, bingo, lottery) on my tax return?

 

and if so, can I put down the stakes laid out as expenses?

Edited July 2, 2011 by meemok
second question

[papasmurf1cx]

I don't believe that you are required to pay tax on these winnings.

 

 

have you had a big win????

[jdes26]

No

u don't have to declare any form of gambling winnings

[Conniff]

If they treated winnings as taxable, they would also have to treat losses as expenses and that would be a right minefield, so the answer is no.

 

Taxes are taken at source in various ways however from the companies.

[meemok]

Thanks for getting back so quickly guys, I couldn't get a direct answer from anywhere!

 

I have detailed records of all plays/wins, just in case mrs queen sends her revenue & customs boys round

 

I'm not looking to try & dodge tax or anything... I work freelance, and I currently care for my mum on an almost full-time basis, so I was gonna take the rest of the year off and live off the winnings, and wasnt sure if they would question how I was supporting myself when I declared such a reduced income next april.

 

It was just a lucky few spins on an online casino (which I have now quit ) and a bit on the bingo, but in total its almost what I earned all last year. I can see how some folks get addicted!

 

 

edit: oh and yes, the lovely cag shall be receiving some!

[mr2mr2]

if your winning alot, share the love lol..

hope your luck is good.

[honeybee13]

Hello there. I'm so envious!

 

And I think the offer of a donation to CAG is wonderful. It will help the site help other people.

 

My best, HB

[Conniff]

HMRC says the following:

 

"

BIM22017 - Trade: Exceptions & alternatives: Betting and gambling - the professional gambler

 

 

 

The fact that a taxpayer has a system by which they place their bets, or that they are sufficiently successful to earn a living by gambling does not make their activities a trade.

The case of Graham v Green [1925] 9TC309 concerned a man whose sole means of livelihood came from betting on horses at starting prices. Rowlatt J says at pages 313 and 314:

 

Now we come to betting, pure and simple… the man who bets with the bookmaker, and that is this case. These are mere bets. Each time he puts on his money, at whatever may be the starting price. I do not think he could be said to organise his effort in the same way as a bookmaker organises his. I do not think the subject matter from his point of view is susceptible of it. In effect all he is doing is just what a man does who is a skilful player at cards, who plays every day.

 

He plays to- day and he plays to-morrow and he plays the next day and he is skilful on each of the three days, more skilful on the whole than the people with whom he plays, and he wins. But I do not think that you can find, in his case, any conception arising in which his individual operations can be said to be merged in the way that particular operations are merged in the conception of a trade. I think all you can say of that man ... is that he is addicted to betting. It is extremely difficult to express, but it seems to me that people would say he is addicted to betting, and could not say that his vocation is betting. The subject is involved in great difficulty of language, which I think represents great difficulty of thought. There is no tax on a habit. I do not think ”habitual” or even “systematic” fully describes what is essential in the phrase “trade, adventure, profession or vocation”.

 

This shows that having expertise or being systematic (“studying form”) is not enough to create a trade of being a ”professional gambler”.

Some ”professional gamblers” do carry on a trade, for example, where they receive appearance money for appearing on television programmes. They are providing a service to a customer (the television production company) for reward. Whether their gambling winnings are proceeds of that trade would depend upon the facts."

 

So unless you are running a trade, then you are exempt.

[Marieleeza]

Now that you have stopped your fluttering, you cannot be said to be earning a living from it so you are certainly in the clear. Enjoy!

[meemok]

Awesome conniff thanks for that!

 

edit: could you post a link to where you found that please?

 

... And I think the offer of a donation to CAG is wonderful. It will help the site help other people. ...

 

oh absolutely! i made a small donation before as I received some brilliant help on the debt collection forum, and cag is such a wonderful source of info I have actually started helping friends and family out now using info from here, and also now I know where to dig to find bits of legislation e.t.c. so its the very least I can do

Edited July 2, 2011 by meemok
question

[meemok]

It was just thru boredom, signed up to get the free welcome bonus offers as you do, then the numbers just rolled in. I had to actually deposit £20 to be able to withdraw it but I'm not going on them again so it was never 'business'.

I just didnt want to get caught out when next years return went off and the amount was so much less.

 

As always, brilliant advice and info from cag