Winnings from Prize Money

PennyStump

Good Afternoon
Not sure if anyone can help?  Do you have to pay tax on prize money over £1000.  I know you now have to declare if you earn over £1000 on say eBay or Vinted, but what if your prize money winnings are over £1000 from Greyhound Racing? And is a regular income.

Mark_d

No you don't need to pay tax on your winnings from gambling.

PennyStump

Mark_d said:

No you don't need to pay tax on your winnings from gambling.

it is not gambling, i own a greyhound and it is prize money from racing? is that classed the same? thank you

HillStreetBlues

Prize money isn't taxable

TimeLord1

No matter how big you win, your gambling income is not taxed. This has been the status quo since 2001, when Gordon Brown abolished tax on gambling winnings and put the tax responsibility on betting companies rather than individual players. 

PennyStump

smashing, thank you all.  I'm not complaining but seems unfair if you sell second hand clothes and have to declare but can earn several £1000s a year through your dog  running and it's all free, I just didn't want to get caught out and owe tax.

TimeLord1

PennyStump said:

smashing, thank you all.  I'm not complaining but seems unfair if you sell second hand clothes and have to declare but can earn several £1000s a year through your dog  running and it's all free, I just didn't want to get caught out and owe tax.

If they're your own clothes and you're selling them on, then they're personal possessions; if you buy to sell for profit, that's trading, and you need to register as a business with HMRC once the thousand pounds is passed.

uknick

The official answer from HMRC regarding owner winning from greyhound racing;

Are race winnings taxable/ require a tax return? - Community Forum - GOV.UK

"Posted 6 months ago by HMRC Admin 19 Response 

Hi,

Generally, we do not consider greyhound racing to be a taxable activity. Prize money from Greyhound racing is generally non taxable and there is no tax relief available for buying the dogs or any of their training costs.  

Section 30 ITTOIA 2005 specifically states that animals kept wholly or mainly for racing or other competitive purposes should not be treated as trading stock. We have a similar position in respect of horse racing. Yoiu can seeguidance here:

BIM55701 - Farming: stud farms: overview

Greyhound racing prize money, in itself, would not constitute a criteria for completing a tax return.

Thank you."

I've posted this to ensure there is no confusion with winnings from placing bets, which is not really relevant to the OP's question.