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Where Taxpayers and Advisers Meet

Do I need to pay tax on prize money?

plc
Posts:6
Joined:Wed Aug 06, 2008 4:08 pm

Postby plc » Thu May 22, 2008 8:07 am

I have recently been informed that I have won £5,000 in a television competition that I entered on the internet. The competition was a simple question which required a choice of A-B-C as answers.

I am led to believe that I am not required to pay tax on the winnings, as I'm not employed by the television company in question and have an unconnected full-time job, but would like some reassurance just in case a bill for £2,000 lands on my doormat...

Thanks in advance.

Simon Sweetman
Posts:1690
Joined:Wed Aug 06, 2008 3:11 pm

Postby Simon Sweetman » Thu May 22, 2008 8:56 am

Despite the fact that there is some pretence at an exercise of skill, there is no tax on prize winnings unless they come about as a result of your employment or self employment (literary prizes may be taxable, for instance). In your case there is no problem.


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