Poker Discussion Post

You don't pay tax on your winnings I believe it counts as prize money which isn't taxable (like the lottery)

In the UK gambling is not classed as a trade, and even if it is your sole source of income you don't have to register as being self-employed, so we pay no taxes at all on any gambling activities here in the UK.

Yup, it is awesome that we don't pay tax on winnings. But I've heard rumours that in the next couple of years they'll be looking into taxing professional gamblers, so be warned.

Yip, no tax, even if it is your sole income. And yes they definitely are looking into a way of taxing professional gamblers, just hope it takes them a while - 10 years should be enough...

No tax on poker winnings if it isn't your main income.

If your 'job' is as a poker player though you are liable to income tax.

It is taxable if it's your job - you are classed as self-employed and pay tax as such.

Yeah but you can just say you're unemployed and I don't think they care. 

Anyone got an official line on this - mixed responses so far already.

Id love to hear moormans take on it. I did try to PM him but no reply.

Anyone from P5s know of discussions about this in the past and their conclusions?

 definitely not taxed at the moment -Joe Beevers did an article about this last year sometime

kramssor... there is no discussion about this; British nationals do not pay tax on gambling winnings at all (well, almost..)

I think the only exception to this rule is if you own a poker club that you make profit from AND you win money from playing in games at that poker club, then the money you win is taxable as it is apparently part of your business earnings. But i doubt you own a poker room, so you have nothing to worry about..

Obviously if you're earning big sums of money from poker, and depositing them into your bank account(s) the inland revenue may get suspicious as to how you got the money (laundering etc), but as long as you keep records to show you got it from poker, you'll be alright.
 

Agreed it does seem to depend on who you ask but the following post from a UK taxation website seems to indicate you do have to. Would be interested to see Joe Beevers article though?

In the UK, income tax is not paid on RECREATIONAL gambling profits (whether it be horse race betting, poker playing...or anything of that nature) This is because, as you have already stated in this forum, gamblers could claim tax back on losses.

However, PROFESSIONAL gambling is completely taxable and all profits must be declared to the IR, just as a business must. Currently, there is no threshold to determine what constitutes a professional gambler. These matters are looked at on a case by case basis. There are two main factors which are likely to determine whether you are a professional or merely a recreational gambler:

1. Do you make an organised attempt to make money out of the gambling public...i.e. do you undertake some sort of strategy, such that you expect to make a profit over the long term?

2. Are gambling profits your primary source of income? i.e. do your gambling profits outweigh all of your other sources of income?

If your answer is YES to BOTH of these, then you should declare your profits to the IR.

For example, Re: Mr garysmith above. If you have another job which pays more than £180000 p.a. you have nothing to worry about. If not, i'm sorry to say you must pay income tax on those profits.

It's also worth mentioning that the IR does not take ignorance as an excuse in such matters. If you are a professional gambler...it's best to declare your income and pay your tax as you go, rather than being found out later and having to pay all of the back-dated tax + hefty fines!

1. Do you make an organised attempt to make money out of the gambling public...i.e. do you undertake some sort of strategy, such that you expect to make a profit over the long term?

That's referring to someone like a bookmaker, who gives people the chance to place money on horses, he is obviously 'organising' this so that a number of gamblers will back different horses, and in the long run he will make a profit from the people who lose. This is not like playing poker, where the individual player is simply just 'playing' cards each day..

Here, this is what i was looking for... i remember reading this a while ago, it's from The Hendon Mob website and explains the UK tax laws and poker. It's basically what i've been trying to say in this thread, but a bit better than i was explaining it:

http://www.thehendonmob.com/Articles/poker%20and%20the%20taxman.htm

It's a bit vague Nickh I agree but it could equally be interpreted as someone who plays a strategy to win money through 'gambling' against others - a poker player.

It does seem to be a grey area but the general rule is if you have an occupation then you will pay tax on your earnings.