Tax on Matched Betting when sole income?

1565,004,126

I asked the Matched Betting forum but got no real answer, but I'm feeling you folks are more tax savvy. I'm a recent graduate who is renting some accommodation for 6 months, and I earn enough with matched betting to pay for pretty much everything (some small losses on savings over time, but I have some decent savings and it's only 6 months).

I am on no form of benfits/JSA, need no part time job atm (working on own projects) and I need to know if there is any tax I need to be paying beyond council tax?

What I need is some good evidence for this, from what I've learned it's all tax free, except if you earn over a certain amount (which I have no idea of how much). But it's some hard data I need, I don't want to be in any trouble due to a lack of research or effort. I'm not too keen on a suprise visit by the taxman.

Thanks for reading,
Feel free to PM me

chrismac1

I can help you. Between 2001 and 2008 I made a total of just over £70k in betting, of which around £20k was arbitrage or matched betting, £10k was internet casinos and the rest was straight betting on sports. Since then I've attempted to crack financial spread betting due to the fact that of the 90 plus betting accounts I had only 3 would let me bet over £5 by the end, so far £5k up so proving a tougher nut to crack.

I had a full-time job in this period, but personally know 3 people who made over £500k in the same period, of whom 2 were UK taxpayers and one from NZ. Neither of the UK taxpayers had a requirement to pay tax on their betting.

In UK tax betting is tax-free. Bookies and casinos pay tax on their "drop" and the Budget saw moves to tighten up on the offshore aspect of this. Where you need to be careful is over "badges of trade" - Google this.

One case from 1967 concerned a speculator in silver, such speculations at the time were normally not taxable. But due to badges of trade the guy got taxed on his profits. So you want to avoid this.

If you start to make "real" money the standard method successfully used by many, including the 2 UK guys I mentioned, is a "tax shelter" - in other words something which is normally taxable and which suggests you are not living on thin air. One of the guys started investing in property, 2001 turned out to be a pretty good year to start and he ended up with 9 properties when I was last in touch with him.

There used to be some really good places on the net where arb traders hung out to warn of potential bookie busts and give other advice. Tax shelters were often discussed on there.

Nosht

True, but if you keep earning untaxable income the authorities will really start looking at your finances in detail as you will come under suspicion for potential money laundering.
Open a small business & plough the profits through this even though this could also be construed as money laundering at least you will be paying some tax & keeping a lower profile.

N.

jamesd

For what HMRC say about this see the betting and gambling pages linked from BIM22000. You aren't trying to make money out of the general public, you're just good at arranging your betting so that you make money instead of losing it: "There has been no decision of a court in Australia nor, so far as I am aware, in the United Kingdom where it has been held that a mere punter was carrying on a business. ... However, an organised activity to make profits out of the gambling public will normally amount to trading."