Tax related question

[kinboshi]

Unless they tax your winnings at source (i.e. at the time they are handed over by the casino) then you'd have to declare them in a self-assessment, which would also allow you to offset any expenses incurred. If you're a pro, then your books will include buy-ins and other costs, surely?

Also, they couldn't tax any cash winnings in this way (at source, that is), only tournament winnings.

[smashedagain]

I had a conversation with keys about this .....the main problem you full time pro guys are gonna have is when the powers that be decide to start taxing poker winnings.

If its your only source of income then it will really hurt.

imagine having to pay even 20% tax. I would think it takes a massive number of players from being profitable to losing.

[tikay]

I had a conversation with keys about this .....the main problem you full time pro guys are gonna have is when the powers that be decide to start taxing poker winnings.

If its your only source of income then it will really hurt.

imagine having to pay even 20% tax. I would think it takes a massive number of players from being profitable to losing.

Not really. You are assuming "a lot" of players are profitable, & whilst it is all relative, the vast majority are not.

[bobAlike]

Imagine a poker players self assessment, lol. It would cost the government more in VAT fraud than they'd ever get in receipts.

[Doobs]

We all pay plenty of tax. 10% rake capped at £7?

I think a lot of venues have to pay 50% gross profits tax on that depending on square footage of gaming areas.

[ ] lot of tax.

I play mostly on line and my tax to profits ratio is absolutely minuscule.  The fact some if the sites/the occasional live venue may pay some tax doesn't really change this. 

Working outside poker most are taxed at 30% + when they include thrir own NI and before you include employer taxes etc. 

[gouty]

I think it is a lot of tax live. In Vegas where poker is taxable income rake is capped $4/$5. Over here it's $11. That is not because casinos are greedy it's simply due to restrictive tax on rake.

[ScottMGee]

Also, they couldn't tax any cash winnings in this way (at source, that is), only tournament winnings.

Not really, the casino could simply record your buy in and then deduct X% from any profit when you cash out.

[redarmi]

Also, they couldn't tax any cash winnings in this way (at source, that is), only tournament winnings.

Not really, the casino could simply record your buy in and then deduct X% from any profit when you cash out.

What happens when you lose?  You can't only get taxed when you win.....you have to be able to deduct losses going forward or there would be no pro's.

[doubleup]

When they put betting tax on before, they didn't give me tax relief on my losses.  Other countries also seem happy to just tax winners. 

We should be happy we have a favourable regime for the likes of us and hope it continues.  I don't think we can assume it will always be like this though.

That wasn't tax, it was duty, which is now paid by providers.  In a big casino, 50% of the rake goes to the govt, so professional players pay a lot of rake.  Some sort additional duty on winnings would simply destroy the gaming industry.

They would have to create a new tax schedule to tax winnings as income because legal cases have settled that gambling winnings aren't income.  Not only would income tax on winnings be trivially easy to avoid, it would also mean that everyone who got 3 numbers up on the lottery would have to complete a tax return....

 

[doubleup]

Also, they couldn't tax any cash winnings in this way (at source, that is), only tournament winnings.

Not really, the casino could simply record your buy in and then deduct X% from any profit when you cash out.

it should take you about 3 seconds to find a way round that rule.

[Jon MW]

I had a conversation with keys about this .....the main problem you full time pro guys are gonna have is when the powers that be decide to start taxing poker winnings.

If its your only source of income then it will really hurt.

imagine having to pay even 20% tax. I would think it takes a massive number of players from being profitable to losing.

Not really. You are assuming "a lot" of players are profitable, & whilst it is all relative, the vast majority are not.

If you add up all the poker profits around the country - even taxing it at 30% is going to yield a fairly trivial amount for the treasury.

As stated above the providers of the service are the ones with constant and consistent revenue, hence why they get taxed and it's unlikely that the players ever will.

[jgcblack]

Id like to know how you think the state will know whats in your account?
Assuming you are not investigated by the tax office they will only know if you tell them, and as others have said you have no concerns as your income is not taxable.

such a cute comment, the authorities have the ability to look when they have 'justifiable means'.

I have this in my security clearance every 5 years.

[SuuPRlim]

tax is stupid.

I had a tax audit recently, was really stressful - I was also absolutely bewildered at how much and what they could find out seemingly very easily, luckily I had nothing (much) to hide but if I did I'd have been abso shitting myself because there is no doubt whatsoever they would have found it.

Pretty scary really lol

[nirvana]

I would put the chances of your tax affairs being investigated at around 90,000/1

[Skgv]

So I graduated from Uni recently and have been playing poker as my only source of income. I've withdrew several 4/5 figure amounts into my bank account in the last few months and what i'm wondering is how long before hmrc get suspicious and question where this money is coming from?

Should I have been keeping some sort of records so I can provide proof that the income is from gambling if/when they decide to ask questions?

the answer is yes as it will save a lot of time an complications later on if the worse happens, as I have had a stressful time over last year when the tax man was investigating all my finances over the last 15 years  which took 6 months to clear up with them coming to my house wt, actually two of them where I had to show tv clips  explaining what the differance between tournament an cash game poker is.an all my online poker accounts from the past an deposit receipts from casinos  to explain an prove I even had bettting slips photo copied to show them e.t.c. The trouble with meetings with my accounts to prove that poker had paid for for my lifestlye an had helped me with buying my buisness an visa versa was quite torrid an I hope I don't ever have to go through that again. Thankfully I was able to prove beyond reasonable doubt that my assets were all legit but the invasion of privacy an paying an accountant an loss of sleep did affect my life during those months.