I left my employment 4 years ago and have been living off the money I made from investments during my working time.
I have made no benefit claims as I had enough money to keep me going and did not want to work for a company any more.
During that time I've dabbled a little but really just been enjoying my free time. I knew this could not last as my money was finite and have been making a more concerted effort to find an income that allows me to work from home.
So I have started making a nice small profit from horse racing. I know that in general that betting is tax free as we pay a betting tax. But as it is my sole means of income currently I am concerned that I will need to pay income taxes on this profit. So I am now wondering what I need to do to keep the taxman happy. I already fill out a tax return every year. Will I need to add this income to that and what will I need to supply from the various bookies and betfair ? Can I claim for costs that I incur for betting advice, manuals etc ?
Any advice welcome, or if there is a site you can direct me to that would be appreciated too.
TIA,
Zalid
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Betting and Taxes
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- Lemon Half
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Re: Betting and Taxes
No, I'm pretty sure it's not taxable at all, and you don't need to tell HMRC anything.
It might be worth keeping records in case of any money laundering-type of query.
Scott.
It might be worth keeping records in case of any money laundering-type of query.
Scott.
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- Lemon Half
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- Lemon Half
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Re: Betting and Taxes
Zalid wrote:So I have started making a nice small profit from horse racing. I know that in general that betting is tax free as we pay a betting tax. But as it is my sole means of income currently I am concerned that I will need to pay income taxes on this profit. So I am now wondering what I need to do to keep the taxman happy. I already fill out a tax return every year. Will I need to add this income to that and what will I need to supply from the various bookies and betfair ? Can I claim for costs that I incur for betting advice, manuals etc ?
This and the pages that follow therein should be worth a read:
Meaning of trade: exceptions and alternatives: betting and gambling - introduction
https://www.gov.uk/hmrc-internal-manual ... l/bim22015
There is further comment here https://www.taxation.co.uk/articles/200 ... s-you-lose albeit from 2006. If the link doesn't work, search for "Heads I win, tails you lose! Taxation 20 July 2006", probably without the inverted commas.
PD
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Re: Betting and Taxes
Thanks 1nv35t. Good advice as best to be upfront and honest with them as they will come knocking one day
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- Lemon Quarter
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Re: Betting and Taxes
PinkDalek wrote:Meaning of trade: exceptions and alternatives: betting and gambling - introduction
https://www.gov.uk/hmrc-internal-manual ... l/bim22015
Just to point out that its link to https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim22017 looks particularly appropriate to this question.
Gengulphus
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- Lemon Quarter
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Re: Betting and Taxes
Zalid wrote:Can I claim for costs that I incur for betting advice, manuals etc ?
As a matter of interest, do you rely on advice from third parties - tipsters and so on - to make your bets? I've seen adverts for such people, but I'd always assumed that they were a con, so I'd be interested to know more if you've found otherwise.
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