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Where Taxpayers and Advisers Meet

Tax Investigation and gambling

vera1965
Posts: 12
Joined: Thu Dec 12, 2013 7:02 pm

Tax Investigation and gambling

Postby vera1965 » Thu Dec 12, 2013 7:17 pm

Over a period of time won cash from betting shops , gambled on internet exchange site and lost .
Taxman asks where I got money to lose.
Did'nt keep receipts of tkts and goes back to 2000.

LozaACCS
Posts: 1504
Joined: Wed Aug 06, 2008 3:55 pm

Re: Tax Investigation and gambling

Postby LozaACCS » Thu Dec 12, 2013 9:16 pm

Vera 1965

The gambling explanation has no credibility whatsoever unless you can provide evidence to support it.

It seems pretty clear that you are subject to a tax investigation.
The tax inspector is incorrect regarding the re mortgage (posted on the CGT page).

I really would urge you to instruct an accountant or tax adviser to assist you.

vera1965
Posts: 12
Joined: Thu Dec 12, 2013 7:02 pm

Re: Tax Investigation and gambling

Postby vera1965 » Thu Dec 12, 2013 9:54 pm

Thank you will do and yes ti, have internet betting accts ie hills lads crls etc all closed would that help re winnings.

wamstax
Posts: 1862
Joined: Wed Aug 06, 2008 3:39 pm
Location: Operate Nationally but based in Aberdeen
Contact:

Re: Tax Investigation and gambling

Postby wamstax » Fri Dec 20, 2013 1:24 am

Having dealt with many a betting "story" on both sides of the fence the answer to this is only tell the truth about your gambling results and do not forget the losses you made to get those overstated gambling winnings.

Now I am not prejudging matters in any way BUT my experience is that unless an individual is undertaking gambling as a means of a living the chances are that overall the individual will make losses.

Of course if you do "gamble professionally" for a living the chances are that HMRC will succeed in taxing your profits but if you are merely a punter then your losses will not be allowable in arriving at your overall tax liabilities.

Successful gamblers will have no difficulty in evidencing their performance and you would be surprised what records can be available to a decent investigator who is seeking to destroy your alleged large unexpected gambling winnings. Anecdotally, it is not impossible of course that once you lead the investigator into the fact that you gamble he/she will uncover facts you never thought were available to show all the undeclared cash you didn't tell them about that you lost in getting your overstated wins.

The key in all this is be realistic as straying from the truth or exaggerating wins can lead to HMRC thinking that not only was your understating taxable income deliberate - getting you heavier penalties - they might also suggest that your straying from the truth also revealed your efforts to make it "deliberate AND concealed".

Full disclosure is I am afraid the only cost effective way to go forward in these sort of situation and don't remember your ODD SUCCESS but forget about all your disappointments .
regards and hope this helps
http://www.wamstaxltd.com
Operates Nationally with competitive costs
and email and phone contact can be obtained from website

King_Maker
Posts: 6538
Joined: Wed Aug 06, 2008 3:22 pm

Re: Tax Investigation and gambling

Postby King_Maker » Sat Dec 21, 2013 12:59 pm

>snip>
Of course if you do "gamble professionally" for a living the chances are that HMRC will succeed in taxing your profits but if you are merely a punter then your losses will not be allowable in arriving at your overall tax liabilities.

<snip>
IMHO, HMRC would not wish to even attempt to tax a professional gambler (book-making aside) - the case of Graham v. Green would normally prevent that plus the ability to claim Loss Relief.

Where the money was obtained to fund the gambling is a different matter.

wamstax
Posts: 1862
Joined: Wed Aug 06, 2008 3:39 pm
Location: Operate Nationally but based in Aberdeen
Contact:

Re: Tax Investigation and gambling

Postby wamstax » Sat Dec 21, 2013 6:27 pm

To King-Maker,
You are absolutely correct in relation to Graham v Green and even where somebody has a system or regularly does it successfully by laying bets with bookmakers it does not usually amount to trading. I did put the term "gamble professionally " within inverted commas signifying in my mind that you had to be doing more than being a punter.
However do not be surprised at the ingenuity of a HMRC tax investigator if the enquiry looks to be going out of the window because of alleged gambling winnings. And of course if your tax returns are incorrect in that you have "lied" previously are you going to win before a third party tribunal LoL.

But yes a properly evidenced betting and gambling story can save you a lot of tax.
regards and hope this helps
http://www.wamstaxltd.com
Operates Nationally with competitive costs
and email and phone contact can be obtained from website

vera1965
Posts: 12
Joined: Thu Dec 12, 2013 7:02 pm

Re: Tax Investigation and gambling

Postby vera1965 » Tue Dec 24, 2013 8:38 am

Re valid proof of where money came from , would receipted evidence be sufficient
times dates and bet details in shops of cash bet placement , chqs paid into bank from ladbokes etc , letter from bookmakers clarifying gains , full history of gaming transactions and losses.
Thanks again

wamstax
Posts: 1862
Joined: Wed Aug 06, 2008 3:39 pm
Location: Operate Nationally but based in Aberdeen
Contact:

Re: Tax Investigation and gambling

Postby wamstax » Mon Dec 30, 2013 4:09 pm

Yes those and properly put together would certainly assist in convincing the HMRC as to the validity of betting transactions
regards and hope this helps
http://www.wamstaxltd.com
Operates Nationally with competitive costs
and email and phone contact can be obtained from website

vera1965
Posts: 12
Joined: Thu Dec 12, 2013 7:02 pm

Re: Tax Investigation and gambling

Postby vera1965 » Sat Jul 12, 2014 11:36 am

Had second interview provided evidence of full time gambling. HMRC were not fully happy about cash amounts but said as I am not employed or self employed and nothing indicates other income on any statements provided etc, said that favours my case and they are a bit confused on gambling aspect? Awaiting next stage 8 months in. I stated all gambling involves different strategies and results are incomparable. I will update next stage thanks

wamstax
Posts: 1862
Joined: Wed Aug 06, 2008 3:39 pm
Location: Operate Nationally but based in Aberdeen
Contact:

Re: Tax Investigation and gambling

Postby wamstax » Sat Jul 12, 2014 1:30 pm

Pressure should be applied to have the check closed down now they are on the backfoot
regards and hope this helps
http://www.wamstaxltd.com
Operates Nationally with competitive costs
and email and phone contact can be obtained from website


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