Taxes in UK

    • Rabenstein
      Rabenstein
      Bronze
      Joined: 14.08.2006 Posts: 3,010
      Hey,

      I'm looking for someone in the UK who can call his local tax office and find out information about taxes on gambling when played on a professional basis, meaning regular and sole income.

      Can anyone help me?
  • 11 replies
    • eudodo
      eudodo
      Gold
      Joined: 11.05.2008 Posts: 241
      Hi,

      I recollect an article in Flush that was a few months ago saying that an income from gambling is in UK free of tax. However I ma not sure about it and it needs to be verified.

      I am curious as well...

      Regards
    • xxbchxx
      xxbchxx
      Bronze
      Joined: 17.09.2008 Posts: 55
      • 03.10.2008, 01:04
      • This post has been edited 1 time(s), it was last edited by xxbchxx: 03.10.2008 01:08.
      Yeah its true you dont have to pay tax on money won through poker.
      I know this as a good friend of mine uses poker as his sole source of income, no mean feat realy but one wich we all inspire to.
      He is the reason i started playing.

      I was actualy at his house when the tax man knocked to interview him as he hadn't payed any tax for the last 6 years, he told them his sole source of income was on line gambling and at that thay left....
    • Rabenstein
      Rabenstein
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      Joined: 14.08.2006 Posts: 3,010
      • 03.10.2008, 01:49
      • This post has been edited 1 time(s), it was last edited by Rabenstein: 03.10.2008 02:13.
      Thanks, but is it still possible one of you asks a tax office, maybe in London? And if you can get this evidenced in writing?

      My written english is ok, but when I tried to call them, they didnt understand me and I didnt understand them :P

      edit:
      Let's say I'll pay a few dollars if someone helps me. What I need is a native speaker, resident of the UK, who can find out at which office I can order written confirmation about taxes, and if the term "professional poker player" is actually a profession, maybe with a trading license or whatever. If interested, contact me in skype, rabenstein83
    • watfordjc
      watfordjc
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      Joined: 07.02.2008 Posts: 34
      • 03.10.2008, 14:34
      • This post has been edited 1 time(s), it was last edited by watfordjc: 03.10.2008 14:35.
      At the present time, UK gambling winnings are not subject to income nor capital gains taxes.

      Until someone in authority (or a court case) establishes that poker is a game of skill - and therefore could be considered a skilled trade profession - rather than a game of luck, it is considered a form of gambling and therefore exempt from tax.

      The case mentioned on the HMRC page BIM22017 - Trade: exceptions & alternatives: betting and gambling: the professional gambler combined with BIM22016 - Trade: exceptions & alternatives: betting and gambling: what is a bet? would consider a "Professional Poker Player" as someone 'addicted to poker'.

      Hmmm... Man guilty in poker skills case, the jury decided poker is a game of skill and chance combined. Poker under the Gambling Act 2005 also considers poker a game of both skill and chance (or equal chance). Some chance involved = a form of gambling.

      The only UK taxes that would be payable for poker would be Gaming Duty or Remote Gaming Duty (neither of which apply to poker players unless you are playing poker as part of business - that is, you're a representative of the card room/pub/club/etc at the place that poker is being played).

      If the online site is US-Based, you may be liable to [url=http://www.irs.gov/businesses/small/international/article/0,,id=106252,00.html[/url]US taxes[/url] on winnings unless you fill in [url=http://www.irs.gov/pub/irs-pdf/fw8ben.pdf[/url]Form W-8BEN (Rev. February 2006) [PDF][/url]

      One other thing, that I'm not sure of from your original post, is if you are a UK resident or not. If not, then you may be liable to pay taxes on your winnings in your country of residence.

      BTW, I'm not a lawyer.


      John.
    • Rabenstein
      Rabenstein
      Bronze
      Joined: 14.08.2006 Posts: 3,010
      Thanks for the detailed information, I've read a lot in the last few days and I can say it's fairly secure you don't have to pay taxes there.

      UK,tremble! I'm coming :D
    • cannell555
      cannell555
      Bronze
      Joined: 06.03.2008 Posts: 2,410
      Hi guys,

      So if online poker is seen as gambling, and not a profession. Can you claim benefits from the government? As its not seen as a job. If so any winning player could become a professional. Anyone clear on this matter?

      Also is there any UK professionals I could chat with on skype? You can add me - stievro.cannell555

      I just want to ask a few more personal questions.

      Best regards,
      Stiev
    • c4ught
      c4ught
      Bronze
      Joined: 14.02.2008 Posts: 58
      Originally posted by cannell555
      Hi guys,

      So if online poker is seen as gambling, and not a profession. Can you claim benefits from the government? As its not seen as a job. If so any winning player could become a professional. Anyone clear on this matter?

      Also is there any UK professionals I could chat with on skype? You can add me - stievro.cannell555

      I just want to ask a few more personal questions.

      Best regards,
      Stiev
      To get benefits dont you have to be actively "looking" for a job? Is quite a good question theres a guy in my local casino who does this actually now you come to mention it.
    • cannell555
      cannell555
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      Joined: 06.03.2008 Posts: 2,410
      What is actively looking for a job? I know men who have been on the dole for 15-20 years, and they do nothing to find a job.

      I've always been totally against people claiming benefits who are basically just lazy, but lately I have been thinking otherwise. I have payed taxes to recieve wages from an employer, then pay taxes on fuel, on food, on my car, etc......

      I have been i'll and signed off work for the last 7 months by my doctor, and yet I recieve less than a guy who's on the dole. I have to pay for all my own medication and weekly trips to the hospital. A guy on the dole gets travel money to go and sign on, and doesn't pay for medication.

      This country is fucked up, and it seems that you need to be foreign or lazy to recieve help from the government. So I advise every English guy to claim what he can, and screw the thieving government for everything they can.

      Rant over,
      Stiev
    • sirilidion
      sirilidion
      Gold
      Joined: 15.04.2008 Posts: 1,656
      I could be worse you could live in holland. Where professianal pokerplayers are fucked in there taxes. Rob Hollink lost his his case where they counted his tournament winning as income without giving him the opportunaty of deduct his cost like tournament fee, traveling expences and hotelcosts. This all while the Dutch gouverment still claims that poker is gambling.

      You're really much better of in the UK trust me.
    • cannell555
      cannell555
      Bronze
      Joined: 06.03.2008 Posts: 2,410
      My rant wasn't aimed at the poker sides of things. It was just a general moan about how the government has fucked me over these past 7 months. So I was suggesting that poker pro's should claim benefits as poker is not seen as a job.

      Best regards,
      Stiev
    • watfordjc
      watfordjc
      Bronze
      Joined: 07.02.2008 Posts: 34
      Actively looking for a job would depend on what the Jobseekers agreement says. Normally when first signing on it's to apply for at least 2 jobs per week, and as time goes on the number of job applications you have to make and job interviews you have to attend increases (as well as work-focussed courses and such-like).

      Although online poker is seen as gambling, any money in poker accounts might have to be taken into account when claiming benefits (this I'm not 100% sure about). I know that if you have more than 3,000GBP in savings the amount you're entitled to decreases - whether a poker account could be seen as savings I dunno.

      cannell555, I agree with you about the current system. I'm on long term incapacity and DLA. When I was on short term incapacity I (for the life of me) couldn't understand how - had I not paid my NI contributions when I was working - I would've been entitled to approximately the same amount as I was getting plus I would've been entitled to free travel, free prescriptions, free dental, free eye-checks, etc.

      Then again, I'd have been worse off now had I not paid my contributions, but at the time I hadn't anticipated not being capable of working for over 2 years. One thing that has helped is having a pre-payment certificate for prescriptions that I pay by direct debit (think it works out 9.87GBP/month for 10 months and 2 months free).


      John.