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Sam
Sam, Accountant
Category: Tax
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I know winnings from gambling are not taxable, however, does

Customer Question

Hi, I know winnings from gambling are not taxable, however, does the following arrangement complicate things?
I am in a betting partnership with a friend, so the betting account is connected to his bank account, (it couldn't be any other way). He withdraws from the betting account to his bank account & transfers my share to my bank account. This is all perfectly transparent and above board, and easily traceable by looking at the statements. I can even show the betting model I devised, but if the taxman investigates...does the involvement of an intermediary alter the situation for me? Will HMRC say that I'm a third party so have to pay tax? I think this would be grossly unfair as the bookmakers are already taxed at source, so undoubtedly pass the cost on through shorter odds. I would be being taxed twice. I want to know so that I am not caught out & face a massive tax bill one day. Can the question be put to HMRC in an anonymous fashion?
My wife and I currently claim working family tax credits, but will drop the claim if I earn at the level I expect to. Is it as simple as saying nothing (if we are not claiming anything & have no tax to pay on winnings from gambling)? I have read winnings need not be declared.
Cheers.
Submitted: 1 year ago.
Category: Tax
Expert:  Sam replied 1 year ago.

Hi

As this is a regular position whilst being in partnership itself does not attract tax, this will affect your benefits as its a regular source of income arising - along with the fact that you have some of your money sitting with the betting account which I would assume is 50% yours - so this is undisclosed income (although only if interest was earned on the money then this interest would be treated as income)

My advsie make a full disclosure to tax credits -

Your tax position is fine unless you start offering betting advise/making bets for other persons - at which point it will be treated as a trade for both tax and tax credit purposes

Thanks

Sam

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