Betting and Taxes

[Zalid]

I left my employment 4 years ago and have been living off the money I made from investments during my working time.
I have made no benefit claims as I had enough money to keep me going and did not want to work for a company any more.
During that time I've dabbled a little but really just been enjoying my free time. I knew this could not last as my money was finite and have been making a more concerted effort to find an income that allows me to work from home.

So I have started making a nice small profit from horse racing. I know that in general that betting is tax free as we pay a betting tax. But as it is my sole means of income currently I am concerned that I will need to pay income taxes on this profit. So I am now wondering what I need to do to keep the taxman happy. I already fill out a tax return every year. Will I need to add this income to that and what will I need to supply from the various bookies and betfair ? Can I claim for costs that I incur for betting advice, manuals etc ?
Any advice welcome, or if there is a site you can direct me to that would be appreciated too.

TIA,
Zalid

[swill453]

No, I'm pretty sure it's not taxable at all, and you don't need to tell HMRC anything.

It might be worth keeping records in case of any money laundering-type of query.

Scott.

[swill453]

So of course you won't be able to claim for costs.

Scott.

[PinkDalek]

So I have started making a nice small profit from horse racing. I know that in general that betting is tax free as we pay a betting tax. But as it is my sole means of income currently I am concerned that I will need to pay income taxes on this profit. So I am now wondering what I need to do to keep the taxman happy. I already fill out a tax return every year. Will I need to add this income to that and what will I need to supply from the various bookies and betfair ? Can I claim for costs that I incur for betting advice, manuals etc ?

This and the pages that follow therein should be worth a read:

Meaning of trade: exceptions and alternatives: betting and gambling - introduction
https://www.gov.uk/hmrc-internal-manual ... l/bim22015

There is further comment here https://www.taxation.co.uk/articles/200 ... s-you-lose albeit from 2006. If the link doesn't work, search for "Heads I win, tails you lose! Taxation 20 July 2006", probably without the inverted commas.

PD

[Zalid]

Thanks all.
I will check those out

[Zalid]

Thanks 1nv35t. Good advice as best to be upfront and honest with them as they will come knocking one day

[Gengulphus]

Meaning of trade: exceptions and alternatives: betting and gambling - introduction
https://www.gov.uk/hmrc-internal-manual ... l/bim22015

Just to point out that its link to https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim22017 looks particularly appropriate to this question.

Gengulphus

[Clitheroekid]

Can I claim for costs that I incur for betting advice, manuals etc ?

As a matter of interest, do you rely on advice from third parties - tipsters and so on - to make your bets? I've seen adverts for such people, but I'd always assumed that they were a con, so I'd be interested to know more if you've found otherwise.