Question about gambling income

[5v3d3b0]

First question: If I was earning a steady income from gambling on something (horses, football etc), would I need to pay any tax? Would it depend on how much I was earning?

Second: Let's say the reason for my consistent winning was some perfectly legal information that most people don't have. And I got to a stage where I want to bet more than the maximum amount allowed on the betting sites. I could then potentially give someone else this information at a price: xx% of their winnings resulting from the information I've given them. This is where it starts to sounds dodgy/illegal... Would it be? At the most surely I could pay tax on the "gift" that is a wad of cash, but I'm not sure.

This is all hypothetically speaking of course

[D O G]

If you were earning a steady income from gambling then you must be a bookie, and would therefore have to pay tax on your profits.

[Suntan Sid]

Not a gambler myself, but I thought if you place your bets through a Booky, you get the choice of paying the tax on your stake or on your winnings. You pays your money and takes your choice.
I'm sure a someone will come along and tell me if I'm wrong!

Spreading your stake over different bookies is precisely what bookies do to limit any possible losses or winning, that's why bookies always win.

AFAIK there is no tax on winnings from gambling, so when you win 145 gazillion, on euro millions, the taxman doesn't come calling.
The revenue will be battering your door down a year later, wanting their slice of the income, that your 145 gazillion has accrued in the preceeding 12 months.
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"Everybody needs money, that's why they call it money!"

[Suntan Sid]

If you had oodles of cash, why get some one else involved, it's more likely to belly up. Just lay your bets off around the country.

If your system was that successful, you'd end up banned from every bookies in the land, after a few months.

There are limits on the size of "gifts" you can receive, tax free.
Once you're over that limit anything you make is classed as income and is taxable, AFAIK.
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"Everybody needs money, that's why they call it money!"

[5v3d3b0]

That's one of the reasons to use other people, because if I or anyone else was that successful they'd get shut down very quickly. Also, let's say I put a grand on a 30:1 bet and won it. What are the chances that betfair, william hill or who ever now owes me the 30k pays up quick and neat with no fucking about? Would they try and screw you over with big bets like that? Maybe it would be better to bet 100 quid on that bet, but on 10 different gambling sites.

[shereen]

[MarJay]

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[5v3d3b0]

Is that the equivalent of a fish in poker?

[iooi]

[joshef]

Yeah..It would depend on how much you are earning and It also depends on your country that where are you living because different countries have their different policies and you have to follow their guidelines. If they put the charges on your income which is coming from the gambling then you have to pay them.

[Ayrton]

Theres no tax on what you earn from gambling. probably because most people cant earn anything near a steady income.
I have seen quite a few people on other forums make a living from poker.

[Mr.Everready]

[tbourner]

I know someone who was earning about 20k a month from gambling, he wasn't paying tax AFAIK. The sites he used gradually introduced new rules to limit what he was doing though - they don't like it but there's not a lot they can do about it.
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[Derivative]

No tax on personal gambling transactions.
The Govt are trying to tax the establishments themselves (flat rate % of profits on bets) - so should be no future worry either.

If you "use other people" you would have to be prepared to be audited though, large amounts of cash moving about is likely to be looked at.

I made about £700 from matched betting but exhausted most of the offers that I can be bothered with.

[bLiXeY]

As above, no tax on money received from gambling.

As a hobby I used to buy and sell UK shares via an execution only broker, profits were not liable to income tax, but they were liable for capital gains tax (and if I'd kept them long enough dividends would be liable for income tax).

As I couldn't short with my broker (only buy), I got around this by using a spread betting company, and as it was gambling, no tax on profits.

You're additional scenario is liable to income tax though.

In taking a return of other peoples profits from their benefiting from your information, you are selling a service. Just like any other company selling a service you would have to pay income tax on your profits.

If you kept it informal and it was only a few k a year you may never be bothered by HMRC, but if it was ran as a business and your 'clients' were strangers and in high numbers, and your profits were many thousands then you could pop up on HMRC's radar and be 'worth' pursuing by them.

HMRC only ever want 'something' from people as opposed to nothing, so it would be far better for you set up a self employed limited company (to stop any of your clients suing you and taking your home should anything go awry) and give HMRC a small amount of tax (after your creative accounting ).

Everyone's happy, job done.

[iooi]

[joshef]

First and the foremost thing is that you are living in which country as much country doesn’t allow betting as legal in their areas. And the second thing is that is that if betting is legal their so you have to follow the betting rules of that country. Is they charge any tax then you have to pay it.

[yuri2085]

In the UK there is no tax on personal gambling winnings.

[hellkat]

[daemonoid]

This might be a good read:

https://news.bbc.co.uk/1/hi/magazine/4482273.stm

OP, it is unlikely you have genuine info that the bookie don't have - after all they pay their staff millions to calculate the odds in their favour. So, be very careful about the quality of info you have!

The company in the bbc article have branched out into selling their advice now (I assume because simply gambling couldn't cover their overheads). As an individual you won't pay tax on the gambling, but you would have to pay tax on any sales you make - ie your cut of other people's winnings, you could set up a company to reduce that rate to ~20% with an overhead of about £500-1000 a year if you do some of the tax returns yourself. Otherwise as a sole trader you'd just pay income tax at your normal level.

Just to be clear, lets say you 'invested' £1000 a week and sold info to 10 people who also did the same at 10% of their winnings. If all goes to plan you double up, as do they:

Your winnings = £1000
Their winnings = £1000x10, your cut being £1000

You then pay tax on £1000 and get £1000 tax free.
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[The Artist]

Most bookies have a payout limit though. Usually 50-150k.

If you bet £5k on a 30:1 and it came in, then you most likely wouldn't get the full amount. Your fault for not checking their payout limit.

[AndyRoberts]

[TheSmiler]

[Harold_Shand]

When it comes to gambling, I'm with the Muslims.
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