poker winnings - are they liable for income tax

C

cormacol

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Hi all

I'm justwondering whether technically i have to declare any money that i have won playing poker?
 
I wouldn't think so, not unless it is your profession, and even then, I think that winnings from gambling may still be exempt.
 
I suppose if everyone was to declare their winnings, everyone else would be able to declare their losses. So it would be a zero sum game for the revenue.
 
both really but mainly from online where i had won a few relatively large sums of money which will show up on my credit card.

Thanks for the replies
 
I have plenty of experience of gambling losses - not much in the way of winnings!! But this is one source of income which is exempt (99% certain anyway), part of the reason is that losses would obviously have to be deductible (I think this is the case in the states, where losses are deductible from any income, ie not ring fenced to gambling income). The other reason would be that historically there was a 10% tax on betting, this could either be paid in advance or paid on your winnings, so in effect additional tax would have been a double taxation. Currently this rate has been reduced to 3% and the majority of bookies pick this up, basically if you still pay this 3% you really are'nt trying!
Anyway - best of luck and keep on fishing!
 
When getting paid, why not do a 'double or nothing' with your company? Get someone to flick a coin. Heads you get nothing, tails you get double.

This would be gambling, and therefore you shouldn't have to pay income tax on your winnings.
 
umop3p!sdn said:
When getting paid, why not do a 'double or nothing' with your company? Get someone to flick a coin. Heads you get nothing, tails you get double.

This would be gambling, and therefore you shouldn't have to pay income tax on your winnings.
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because you would still need to pay paye on the money you are going to gamble on the toss...
 
because you would still need to pay paye on the money you are going to gamble on the toss...
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Good point (duh! :D)

A revision of the scheme:

An employee gambles an nominal amount, say 10 cents, with their company. If they win, they get double their wages, if they loose they get nothing. Odds of winning are even.

The stake is 10 cent, and income tax will already have been paid on this.
 
umop3p!sdn said:
An employee gambles an nominal amount, say 10 cents, with their company. If they win, they get double their wages, if they loose they get nothing. Odds of winning are even.
Click to expand...

Why would the company want to do this? If the company wins, they get 10c.
 
The company gets 10c plus they get to keep the employee's wages for that month or week.
 
Any such scheme (no matter how frivolous) would fall foul of the Revenue as it is clearly designed to 'avoid' tax. It could also be argued that it contravenes employment legislation.
 
You'd need to employ an independant adjudicator from KPMG to witness the toss ;)
 
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