Pay taxes on prizes?

view

Just a random thought that has popped into my head, if you're self employed / your own company and complete your own tax return, would you have to declare monies on prizes (especially any big ones?)

One-Eye

No - all prizes are tax free in the UK.

(This is the main reason why all T&C exclude employees and people connected with the promoter from entering)

see HERE (and note the date)

brownhandbag

Hi View, As I understand things the only place you need to watch out is if you are claiming any type of benefits.... then a cash win would need to be mentioned as it could effect what you are entitled to. Ditto e-bay sales etc.

Dew_Green_Lady

Unless it was a very large sum which took you out of benefits it would be classed as an irregular payment which need not be declared. Similarly unless you are a business seller on ebay you need not declare selling off your personal belongings there - and this includes prizes.

Lonster

Well if you win big on a Lottery scratch card and the cash prize is paid out over a number of years (i.e win £10K cash a year for life) then that is taxable. The prize is an annuity, a financial instrument that pays out each year and this I'm afraid is taxable.

mjm3346

Lonster wrote: »

Well if you win big on a Lottery scratch card and the cash prize is paid out over a number of years (i.e win £10K cash a year for life) then that is taxable. The prize is an annuity, a financial instrument that pays out each year and this I'm afraid is taxable.

Don't see many competitions on here which are paid over a number of years, there used to be a free lotto which bit the dust a while ago although there was an option with that to take a reduced lump sum instead of annual payments so avoiding the tax liability.