Housing benefit and gambling winnings

Tomasulo

Hello,

I am currently unemployed and on housing benefit. Over the last few months I have managed to make several thousands of pounds through gambling (I'm still under the £16,000 savings limit). Does this count as income, should I tell the council and will it have any effect on my benefits?

I've searched the HMRC website but can't seem to find any solid written information about gambling winnings being taxed or counted as income.

Thanks

Housing_Benefit_Officer

As soon as your capital went over £6,000 you need to declare the capital. It isn't treated as income but your savings are treated as capital.

ManAtHome

Gambling winnings aren't taxed, but make sure you have a paper trail - HMRC etc have a tendency to question the source of untaxed dosh.

Tomasulo

Thanks for the response I have been over £6,000 for several months, I'm hoping that isn't a problem if I am honest about it.

allen35

If you are claiming income based JSA you will need to inform Jobcentre Plus, your JSA benefit entitlement will reduce by £1 per £250 above £6,000 and up to £16,000

As long as your savings are below £16,000 there will be no change to your HB as reductions are only relevant to one benefit.

Inform JCP if your savings reduce or increase for a reassessment.

Be aware if you currently have £7,000 and lose it gambling you may still be classed as having the whole amount due to depravation.

If not on JSA inform your local authority.

scootw1

i think the taxpayer is paying out too much to the op if they can go gambling.

MadelinesMum

Take it out of the bank. If they question you about where it went, then say you lost it again gambling.

AMG762

allen35 wrote: »

As long as your savings are below £16,000 there will be no change to your HB as reductions are only relevant to one benefit.

I never knew this, thanks, really useful info

Tomasulo

Sorry to bump an old thread but I've spoken to my local authority and two people have told me the same thing. They are saying that any income can be used against my claim and hence have stopped my benefit.

I've tried to argue my point but am getting nowhere. I've told them that the HMRC doesn't count gambling winnings as income but they've replied that it's up to them as a local authority to make that decision? I've tried making the argument that I could win £1000 today and lose £2000 tomorrow.

Does anyone have any advice as to where I should go from here?

My benefits were stopped completely because I had several withdrawals (£800+) from one particular bookie over the period of one month. That is, despite having many outgoing transactions to other bookies.

HappyMJ

Tomasulo wrote: »

Sorry to bump an old thread but I've spoken to my local authority and two people have told me the same thing. They are saying that any income can be used against my claim and hence have stopped my benefit.

I've tried to argue my point but am getting nowhere. I've told them that the HMRC doesn't count gambling winnings as income but they've replied that it's up to them as a local authority to make that decision? I've tried making the argument that I could win £1000 today and lose £2000 tomorrow.

Does anyone have any advice as to where I should go from here?

My benefits were stopped completely because I had several withdrawals (£800+) from one particular bookie over the period of one month. That is, despite having many outgoing transactions to other bookies.

You need to show us the wording exactly of the letter you have. Are they going for deprivation of capital for the amounts that you have won and spent? You'll need the help of someone local to you specializing in benefits to get this resolved as some people see it as income when it isn't.

If you were to win £5,000 in one bet having already had £5,000 in the bank you are expected to declare fairly quickly that you have £10,000 you cannot use it to gamble it away again the next day. You must use the winnings to live off and spend the capital at a certain rate which could take quite a few months possibly a year or more if you are single to get it back below £6,000. The weekly decay rate is only around £100 per week for living costs plus whatever your rent is.

Personally if you can make enough on matched betting to not really require housing benefit then you should really aim to come off housing benefit as you are smart enough to not need it although as you know you are fully entitled to it.

Tomasulo

Thanks for the reply

When my benefits were stopped they had no idea of my capitol as I wasn't aware I had to declare it. The latest statement I send had a little over £300 in my bank account.

All they said was, 'we've looked at your statement and can see that between X of May and X of June you received £xxx from this bookie. We are dividing this amount by the number of weeks and using this as income. No more benefits for you...'