Selling competition wins, is this self employed?

Charityworker

I was just thinking if I started entering competitions with the view of selling the prizes I win would I be classed as self employed and would I have to declare the income? My mum told me about someone she knows who has won loads and I mean loads. Her house, her car everything.

I enter competitions a lot but I only enter ones that I want to keep or give as gifts. I gather if I want to sell the winnings it would be seen as an income?

lucinad

i imagine that this person is extremely lucky to have won such huge prizes and i wouldnt go into it thinking that you will possibly have the same outcome,

sorry not much help as i dont know about declaring them as an income as i enter comps and win somethings (nothing like cars and houses!!!!!!! i wish) but i do it because i enjoy it and i dont really get rid of many of my wins.

good luck if you go ahead to try and make a living out of it but i wouldnt be expecting similar wins as houses and cars regularly coming your way.

Charityworker

I realise that.

But if I win the odd dvd or something and I sold it would this be seen as a declarable income?

nickj_2

i wouldn't have thought prizes could be classed as income

elsien

I've been comping on and off for years and the biggest prize I've ever managed to ebay went for about £50. Unless you spend all day on it, or are extremely lucky, you may not get enough to worry about the tax implications.

Charityworker

So are you seriously saying that if you comp for an income, no matter how small, you don't have to tell the benefit people? Great!

I've been comping for 5 years and I've won a lot of big prizes. 6 holidays, iPad, washing machine, 3 wiis, xbox, ps3, wide screen tv, tickets, books, DVDs etc. So if I had sold them for an income I wouldn't have to declare it?

pitkin2020

A competition prize is a tax free gift so I can't see how you would have to pay tax on if you decided to sell it. Your not buying to sell, even if you are trying to win so you can sell it.

Its not a very good business model though if your looking for a regular income.

elsien

Charityworker wrote: »

So are you seriously saying that if you comp for an income, no matter how small, you don't have to tell the benefit people? Great!

Nowhere in your OP did you say you were on benefits. If you had, the answer might have been different. We're not psychic.

pitkin2020

elsien wrote: »

Nowhere in your OP did you say you were on benefits. If you had, the answer might have been different. We're not psychic.

I can't see how it would make any odds unless you can say it is classed as a self employed income. Which as the OP is not buying to sell I can't see how it would be?

The only time the OP would have to inform benefits is if this is a business or if the OPs saving go over a certain amount. You don't have to tell benefits if you have decided to up your income from gambling only when you have saved enough. I can't see how this idea (or a poor business model at best) is any different to gambling.

lucinad

http://www.moneysavingexpert.com/family/Competitions-comping-win

martins says no you dont have to pay tax read this page it is a question near the bottom of the page

Mouse1812

I've not read Martin's opinion, but without that insight I will also say no, its not taxable.

If you win something it is exactly that, a win. You have not earned it, no work was done for reward, no services were provided, there was no trading (buying and selling), there was no guarantee of payment in entering the competition and there has been no reduction in the value of your estate.

You are merely converting one asset (the win) into another asset (cash). That’s not taxable.

What did Martin say?