Professional Gambler & Income Tax

[mowa]

I remember a long time ago reading about a guy who was working as a self employed person for a number of years but had not registered. His wife also worked full time IIRC PAYE. He got away with it for years and years but like many evaders eventually got caught and got assessed for thousands. After the court case he was asked if he had any regrets, his reply was no and went on to explain that he had placed 30% of his gross earnings into premium bonds each month as a contingency for being caught. IIRC the basic rate of tax was 25% at the time.His theory was if he did n't get caught before retirement it would be an addition to his pension. He went on to say that the amount he had saved more than covered the back tax and interest/penalties and that as well as many small wins of £50 he had had other big prizes totalling £15,000 during the period. He said the only down side of it was that he could have faced a custodial sentence but believed because he was totally transparent and co-opertive after being caught he was spared this fate.

Disclaimer: I am by know means advocating this course of action.

[mowa]

"She went away to confirm it with a supervisor and came back laughing about the idea it might be taxable saying "there isn't even anywhere on the form you could declare it".


The last time I looked at an SA100 (self assesment form for the self employed) a couple of years ago there was a box which asked "any other income"

The notes to this numbered box said that any other TAXABLE income was to be declared here.

[Ole]

i'll understand if you don't answer this question the gambler,but on your self assessment form,were you declaring yourself as a pro gambler?

If someone doesn't want any state hand outs and basically wants to drop from the radar,and become a 'house husband',do they still have to fill out a self assessment/self employed form?

[mowa]

"If someone doesn't want any state hand outs and basically wants to drop from the radar,and become a 'house husband',do they still have to fill out a self assessment/self employed form?"

AFAIK only people who are self employed or have another income from a part time business come under self assesment. For any other sources of income the onus is on the tax payer to inform HMRC in a timely manner. The HMRC have a number of tools to detect evasion which I'm aware of which many people are not. I should add my awareness has come about through edcation and not through contravening the law of the land.

[Ole]

so,if my only source of income was from gambling,which,it seems,from earlier posts,isn't taxable in this country,i'd be ok...just to be 100% sure,i think,as the gambler said earlier,i'm going to have to bite the bullet and ask the tax office outright.

thanks for the info mowa,and dare i ask what the 'number of tools' consist of?

[lucky_scrote]

Hey guys, i made a comment in this thread over a year ago.

According to the uk government if you are making a living out of gambling you are "retired". Yep its true, you are unemployed and don't have to pay tax. The other thing is that im not too sure off, is national insurance. I think i should be paying this but im not. I should probably get some advice and see if i have to pay for this because i may or may not need to.

Any other young people making money out of gambling (In my case i make a good amount of money out of poker and i am also sponsered)

[The Gambler]

Ole,
I have never filled a self-assessment form in. I only phoned self-assessment re the gambling question because I didn't know who else to try.

I have since found out that a friend of mine approached his local tax office and got it in writing that any winnings are not taxable.

[lasvegasdan]

Ole
I wish you lots of luck in what your hoping to do. But are you not putting the cart before the horse. Should you not worry about all this once you have £30k stuck under your bed!! all the best Dan

[Ole]

Thanks all,just had a stroke of luck,i bumped into an old friend who now works at the tax office,gawd bless him,who thinks the same as lucky_scrote,so he'll make a tentative enquiry for me,and i'll post the answer on here.

[Ole]

hiya lasvegasdan,

fair point,its started so well,(i've 7k at the mo),and its going like a runaway train up to press,thats why i thought i'd best make a few enquiries now,thanks for your the best wishes.