Tax

[malaguti]

I did phone HMRC, but I guess the problem is you can phone a dozen times, talk to a dozen different people and get a different answer every time.
The problem is that the "down side" to assuming your income is tax free and getting it wrong is going to be very costly especially as HMRC can go back several years.
However the person I spoke to you was very sure that nobody can expect to earn a living tax free, and that more than anything else makes perfect sense as far as HMRC are concerned. Also that Spread Betting is gambling as far as HMRC are concerned and that assumes casual betting not making a living out of it and that rules with concern to the main or sole income were covered under other tax rules.
In any case this is all about people making their own interpretation of the rules and if it was clear cut then the companies offering this service would be able to state unequivocally that this is tax free rather than hiding behind disclaimers.

Parky, remember..its tax free IF its not your main source of income. You will not be paying tax on your spreadbetting you will be paying tax on your other income. The rest is gambling. IF its your sole source of income, then yes you will be taxed accordingly.
So if you talk to HMRC dont leave out the drug dealing and you will be fine

 

[D70]

Parky, remember..its tax free IF its not your main source of income. You will not be paying tax on your spreadbetting you will be paying tax on your other income. The rest is gambling. IF its your sole source of income, then yes you will be taxed accordingly.
So if you talk to HMRC dont leave out the drug dealing and you will be fine

Hi Malaguti,

I have heard different to you on this one.
My friend actually has a letter (he insisted on it) from HMRC telling him he doesnt have to pay tax on his only source of income (which is betting / gambling / sb'ing (whatever you want to call it)).

 

[malaguti]

Hi Malaguti,

I have heard different to you on this one.
My friend actually has a letter (he insisted on it) from HMRC telling him he doesnt have to pay tax on his only source of income (which is betting / gambling / sb'ing (whatever you want to call it)).

Well, erring on the side of caution and all that.
My mrs is the one who relies on this as her only source of income. So she will be chuffed to know she no longer has to sell her body on the streets!
Thanks though D70. I will get that letter myself. No way am I letting her off that easily

 

[D70]

Well, erring on the side of caution and all that.
My mrs is the one who relies on this as her only source of income. So she will be chuffed to know she no longer has to sell her body on the streets!
Thanks though D70. I will get that letter myself. No way am I letting her off that easily

He has been told by HMRC 8 years in a row that his tax bill is zero.
It's funny tho because we play golf with a couple of accountants and they both lose their mind saying that because it is his only source of income he MUST pay tax on it.
Assume everyone doesnt know what they are talking about and you'll be about right

 

[Lord Flasheart]

He has been told by HMRC 8 years in a row that his tax bill is zero.
It's funny tho because we play golf with a couple of accountants and they both lose their mind saying that because it is his only source of income he MUST pay tax on it.
Assume everyone doesnt know what they are talking about and you'll be about right

Facts are facts and as far as I can tell,no one has been prosecuted and there are many firms that state it is tax free.If one prosecution went through there would be major implications for all.

 

[D70]

Facts are facts and as far as I can tell,no one has been prosecuted and there are many firms that state it is tax free.If one prosecution went through there would be major implications for all.

Plus, if it is taxable you would also be able to offset losses.
So the tax man knows not to touch it.

 

[capitalspreads]

this is always a difficult area.

In reality, I understand, the Capital Gains revenue for the Exchequer is still at the same level today as it was in the 1970's. In the recent past all the way back to "way back when" it was almost impossible for the tax man to find out Capital Gains income of individuals as you could easily buy thorugh one broker and sell through another and there was no way of connecting up the two.

The point of this comment is that trying to get people to pay capital gains tax on the surplus over 10k of 28% as opposed to just getting a definite 3% gaming duty on all client net losses plus corporation tax from the SB companies will nearly always be more than they could squeeze out of the punters on CGT. And with absolutely no effort.

The tax free side is a very good advert but do not mistake it for a 'free lunch' from the taxman. The Taxes still get paid, just into a different pot.

Not only this but if a client does win big he generally spends it on a big ticket item with 20% VAT !

Simon

 

[malaguti]

this is always a difficult area.

In reality, I understand, the Capital Gains revenue for the Exchequer is still at the same level today as it was in the 1970's. In the recent past all the way back to "way back when" it was almost impossible for the tax man to find out Capital Gains income of individuals as you could easily buy thorugh one broker and sell through another and there was no way of connecting up the two.

The point of this comment is that trying to get people to pay capital gains tax on the surplus over 10k of 28% as opposed to just getting a definite 3% gaming duty on all client net losses plus corporation tax from the SB companies will nearly always be more than they could squeeze out of the punters on CGT. And with absolutely no effort.

The tax free side is a very good advert but do not mistake it for a 'free lunch' from the taxman. The Taxes still get paid, just into a different pot.

Not only this but if a client does win big he generally spends it on a big ticket item with 20% VAT !

Simon

Basically, we're all screwed in the end...love your taxman

 

[capitalspreads]

malaguti

amen to that