Selling competition wins, is this self employed?

pitkin2020

Mouse1812 wrote: »

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?

Q. Do I have to pay tax on my prizes?

A. No. Just like betting in sport, your winnings in the UK are tax-free. The only exception’s if your employer runs an incentive competition for staff, eg, the salesperson who sells the most cars wins a trip to Ibiza.

heathcote123

Not so sure on this, for example spread betting is tax free, but if it's being done as a 'job' (ie your main income) income tax is payable..

Probably best just to keep it quiet, can't imagine you'd get chased for it. You could get a job instead.

pitkin2020

heathcote123 wrote: »

Not so sure on this, for example spread betting is tax free, but if it's being done as a 'job' (ie your main income) income tax is payable..

Probably best just to keep it quiet, can't imagine you'd get chased for it. You could get a job instead.

Do you have a link to back that up?? As far as I was aware all gambling was now tax free.

Also where does doing it for fun 40 hours a week to it becoming a job become defined??

heathcote123

pitkin2020 wrote: »

Do you have a link to back that up?? As far as I was aware all gambling was now tax free.

Also where does doing it for fun 40 hours a week to it becoming a job become defined??

http://www.hmrc.gov.uk/manuals/bimmanual/bim22020.htm

http://www.taxinsider.co.uk/552-Sophisticated_OnLine_Gambling_Does_This_Still_Hold_As_Tax_Free.html

Looks easy enough to get away with though, as long as it isn't your main 'profession'

Is entering lots of competitions with all your time really that different? (ie the carrying on of a trade) I don't know, and if it was me I wouldn't ask.....

pitkin2020

heathcote123 wrote: »

http://www.hmrc.gov.uk/manuals/bimmanual/bim22020.htm

I may be reading that wrong but would only apply if your main business was attached. So in the case of winning things, lets say electrical appliances were the main prizes unless you ran an electrical retail store for example there would be no link. If your on benefits and have no employment there again would be no link to a profession and no gain to the business.

I think thats purely to stop tax evasion, whereby the gambling club owner for example could easily say the club makes no profits but he wins 10k a night playing poker.

lucinad

pitkin2020 wrote: »

Q. Do I have to pay tax on my prizes?

A. No. Just like betting in sport, your winnings in the UK are tax-free. The only exception’s if your employer runs an incentive competition for staff, eg, the salesperson who sells the most cars wins a trip to Ibiza.

thank you, sorry on my tablet (that i won as a matter of fact!) and i cant/havent figured out how to copy and paste big sections of words

pitkin2020

lucinad wrote: »

thank you, sorry on my tablet (that i won as a matter of fact!) and i cant/havent figured out how to copy and paste big sections of words

LOL, no problem. Hope you don't sell that tablet for profit you might have to pay tax it :rotfl::rotfl:

heathcote123

pitkin2020 wrote: »

I may be reading that wrong but would only apply if your main business was attached. So in the case of winning things, lets say electrical appliances were the main prizes unless you ran an electrical retail store for example there would be no link. If your on benefits and have no employment there again would be no link to a profession and no gain to the business.

I think thats purely to stop tax evasion, whereby the gambling club owner for example could easily say the club makes no profits but he wins 10k a night playing poker.

I think you are reading it wrong - what they are saying is that if gambling 'is your job' then it becomes taxable. Have a google on it, a few spread betters are a bit concerned.

It's all a bit academic, can't imagine hmrc would ever chase anyone for winning a few prizes.

heretolearn_2

It is not taxable income, so no, it doesn't have to be declared as a business and tax paid.

It is still an income though so could effect benefits - some of them you can only have a certain amount of savings so extra money in your account would effect that. Likewise getting £20 for selling on a blender I wouldn't imagine is declarable, but winning a '£10,000 a year for life' competition would give you a regular income so would be declarable and would effect most benefits.

pitkin2020

heathcote123 wrote: »

I think you are reading it wrong - what they are saying is that if gambling 'is your job' then it becomes taxable. Have a google on it, a few spread betters are a bit concerned.

It's all a bit academic, can't imagine hmrc would ever chase anyone for winning a few prizes.

Please link to where it says that, i.e the paragraphs as I can only see where it says if there was a direct link that it could be classed as a taxable income. If gambling was your job i.e you ran a betting shop or poker tournament there would be a link.

If someone spends all day mon-fri in the betting shop as a punter is that their job??