If you are a beginner to gambling, trying to get your head around all the different tips and tricks of the trade can be tough. You will find yourself learning a lot at once. One thing you will learn quickly is that winning a bet is a great feeling. It’s almost like when you find a £20 note lying on the floor. Free money. What’s best about winning a bet is, you don’t pay any tax on it whatsoever. It makes it that little bit sweeter.
Whilst gambling in many other countries does cost in taxes, some countries taxing up to 25% on gambling winnings, the United Kingdom has a tax-free gambling policy. It used to be that you had to deal with betting duties which would be present. These were scrapped by Gordon Brown when he was chancellor in 2001. Since then, and due to threats from offshore betting, the UK government has passed the Gambling Act 2005, Uk gambling Commission and started to regulate online betting casinos, but one thing has remained the same – gambling in the UK is tax free.
The betting companies pay a levy of around 15% which assures that the UK government and HMRC department actually receive a huge cut of profits from gambling without a tax on the individual. This means that whilst the bettor doesn’t pay direct fees, they do by proxy.
Betting companies offshore
Gambling online brings with it a certain luxury. It’s simple and easy. It is now also super popular. But before this trend blew up into what it is now, betting online would most likely see your money head to an offshore company which would be evading the levy imposed by the UK duty. This tax burden was quickly realised by the British government who created the UK Gambling Commision effectively forcing betting shops to join the commision, become fully licenced and have a flat rate 15% levy like every other company.
Are professional gamblers taxed?
In short, no. HMRC makes no distinction between professional players and casuals. At present this is the law but this may be subject to change fairly soon. This is because the UK government doesn’t register it as a professional trade.
Keep records, for peace of mind
Whilst you shouldn’t need to prove it to HMRC, it is always worth having records of your gambling records. This can allow you to prove your income easily for any questions asked and is also a good way of tracking your wins and loses to make sure you aren’t haemorghing money.
Is it different in different countries in the Uk?
The tax is the exact same across the whole of the UK. This means throughout the devolved nations – England, Scotland, Wales and Northern Ireland – gambling remains tax free.
Better to start betting
If done well, betting can be a brilliant way of boosting monthly incomes and allowing an extra couple of beer tokens in your pocket. If you are struggling as a beginner why not check out tipsters to try and boost winnings – specifically see more on Footy Accumulators. Regardless, the tax free nature of it allows you to walk away from the bookies with a win, free from tax spite. So why not give it a go?