So how much proof do they need to keep to justify to the taxman where they get their income from Posted by PUCPOUND
Please understand, they need no proof to justify any ''Taxable income'' as they have no ''Taxable income'' to HMR&C as it is not ''Taxable income'' it is winnings through gambling. A lottery winner would pay no tax on his/her multi millions in winnings (though would on the interest) as would a pro layer winning thousands of pounds on the horses pay no tax on the winnings. Be assured though that the companies where they ''earn'' their profit are taxed so therefore the taxman does definitely get his slice. Some people seem to be saying pro poker players are nothing more than tax dodgers who pay nothing into the system but receive all the benefits that a paye employee would be entitled to, but this is completely wrong (and i am not a pro player lol) it just seems that way to the uninitiated. I would rather they turned their attention to all the benefit fraudsters out there, they are the real villains, not the poker players!
As another poster said all poker players pay tax indirectly. Rake forms part of sky pokers trading profits which are subject to corporation tax. Just like any other consumer a poker player pays VAT on the purchase of a good or service, stamp duty on house purchase, IHT on death assuming they have a large bankroll!
The only tax they are really exempt from is income tax.
Other countries do see poker winnings as taxable income. In USA all winnings are taxed at 30%,
With a win over $3000 (?) in a casino the tax is automatically deducted. But when an American fills out his tax return he can claim deductions on losses.
The system sounds pretty unworkable and it also applies to online winnings, which is odd because online poker is illegal !
But it is only applied to American citizens. An English player cashing in Vegas has to fill in a tax form to receive an ITIN number and then gets paid in full. I still have my ITIN number (blatant brag!).
When I banked some of my winnings I had to show it to prove it was not drug money, or some other money laundering.
I believe some local players use this as a loophole by claiming they are playing aith a foreigners cash.
Some European countries have similar systems, so maybe we should not be too smug about our situation in the UK, particularly with online poker.
As many poker sites are registered offshore and not paying the full rate of tax, and with the growth of poker here, there is bound to be some civil servant reviewing the issue already.
Other countries do see poker winnings as taxable income. In USA all winnings are taxed at 30%, With a win over $3000 (?) in a casino the tax is automatically deducted. But when an American fills out his tax return he can claim deductions on losses. The system sounds pretty unworkable and it also applies to online winnings, which is odd because online poker is illegal ! But it is only applied to American citizens. An English player cashing in Vegas has to fill in a tax form to receive an ITIN number and then gets paid in full. I still have my ITIN number (blatant brag!). When I banked some of my winnings I had to show it to prove it was not drug money, or some other money laundering. I believe some local players use this as a loophole by claiming they are playing aith a foreigners cash. Some European countries have similar systems, so maybe we should not be too smug about our situation in the UK, particularly with online poker. As many poker sites are registered offshore and not paying the full rate of tax, and with the growth of poker here, there is bound to be some civil servant reviewing the issue already. Posted by penguin7
I wouldnt hold your breath, as 90% of poker players in the UK lose money if it was taxable losses could be offset against other income eg PAYE effectively making it a freeroll for your income tax liability. The HMRC or the exchequer would not stomach that. The UK gaming industry makes a significant contribution to the exchequers coffers in anycase regardless of those companies who are based overseas.
In Response to Re: do they pay tax? : I wouldnt hold your breath, as 90% of poker players in the UK lose money if it was taxable losses could be offset against other income eg PAYE effectively making it a freeroll for your income tax liability. The HMRC or the exchequer would not stomach that. The UK gaming industry makes a significant contribution to the exchequers coffers in anycase regardless of those companies who are based overseas. Posted by ACEGOONER
Point taken about majority of players being losers.
This is why I said the American system is unworkable. But the system is also in place in several European countries and already causing conflicts of interest. A case in point is that expats in some European countries cannot play on here now because of the tax regime iwhere they are living.
So with pressure from Brussels for tax harmonisation a change cannot be ruled out
In Response to Re: do they pay tax? : Point taken about majority of players being losers. This is why I said the American system is unworkable. But the system is also in place in several European countries and already causing conflicts of interest. A case in point is that expats in some European countries cannot play on here now because of the tax regime iwhere they are living. So with pressure from Brussels for tax harmonisation a change cannot be ruled out Posted by penguin7
Dont want to make this political but seeing as cameron told brussels where to stick their contingency baliout fund, I cant see them dictating our tax policy.
Comments
Might not pay Tax but the Rake paid to enter tournaments must be more expensive
With a win over $3000 (?) in a casino the tax is automatically deducted. But when an American fills out his tax return he can claim deductions on losses.
The system sounds pretty unworkable and it also applies to online winnings, which is odd because online poker is illegal !
But it is only applied to American citizens. An English player cashing in Vegas has to fill in a tax form to receive an ITIN number and then gets paid in full. I still have my ITIN number (blatant brag!).
When I banked some of my winnings I had to show it to prove it was not drug money, or some other money laundering.
I believe some local players use this as a loophole by claiming they are playing aith a foreigners cash.
Some European countries have similar systems, so maybe we should not be too smug about our situation in the UK, particularly with online poker.
As many poker sites are registered offshore and not paying the full rate of tax, and with the growth of poker here, there is bound to be some civil servant reviewing the issue already.
This is why I said the American system is unworkable. But the system is also in place in several European countries and already causing conflicts of interest. A case in point is that expats in some European countries cannot play on here now because of the tax regime iwhere they are living.
So with pressure from Brussels for tax harmonisation a change cannot be ruled out