4 ms·

http://www.theguardian.com/money/2012/sep/10/do-you-pay-tax-lottery-win http://www.theguardian.com/money/2012/sep/10/do-you-pay-tax-... HM Revenue & Custom

http://www.theguardian.com/money/2012/sep/10/do-you-pay-tax-lottery-win http://www.theguardian.com/money/2012/sep/10/do-you-pay-tax-... HM Revenue & Customs doesn't regard lottery winnings as income, so all prizes are tax-free – hurray! However, there could be tax implications once you've banked your winnings. I'm struggling to find other answers, the Daily Mail's 'This is Money' website says the opposite is true and that it's counted as freelancer income. http://www.thisismoney.co.uk/money/experts/article-2551709/I-just-won-5-000-industry-award-Do-I-pay-tax-it.html http://www.thisismoney.co.uk/money/experts/article-2551709/I... HMRC has produced guidance in the context of freelancers who win prizes and the short version is that they view most prizes as taxable income of the freelancer. Grey area? An interesting area.

onion2k 11y ago
http://blog.national-lottery.co.uk/meet-man-pays-money/#.VcCY2flVhBc http://blog.national-lottery.co.uk/meet-man-pays-money/#.VcC... - A blog by the guy who pays out the money. It's tax free.
- shawabawa3 11y ago
  For the lottery, yes. I believe because the tickets themselves are taxed you aren't taxed when you win. I believe the same is true of gambling winnings (The reasoning being that you aren't given tax refunds when you lose, so it's unfair to tax when you win) Prizes that you haven't payed for entry might be different.
  - pizzeys 11y ago
    > I believe the same is true of gambling winnings (The reasoning being that you aren't given tax refunds when you lose, so it's unfair to tax when you win) Which becomes really interesting when you consider professional poker players.
pbhjpbhj 11y ago
Re freelancing - the context is that the prize is an industry award; they won it as part of their work and so if they're a sole trader it counts as income in the normal way and would be taxed accordingly. Gambling income is tax free in the UK as I understand it, you pay tax to take part (the tax at that end is greater unless the company pays out more than it receives!).
- CatsoCatsoCatso 11y ago
  Ah excellent, thanks for the clarity regarding the freelancing. Admittedly I skimmed those articles to try and claw the information as fast as I could. (Having a website which looks like the DailyMail open at work (even during break) isn't the best look!)

onion2k 11y ago

http://blog.national-lottery.co.uk/meet-man-pays-money/#.VcCY2flVhBc http://blog.national-lottery.co.uk/meet-man-pays-money/#.VcC... - A blog by the guy who pays out the money. It's tax free.

shawabawa3 11y ago
For the lottery, yes. I believe because the tickets themselves are taxed you aren't taxed when you win. I believe the same is true of gambling winnings (The reasoning being that you aren't given tax refunds when you lose, so it's unfair to tax when you win) Prizes that you haven't payed for entry might be different.
- pizzeys 11y ago
  > I believe the same is true of gambling winnings (The reasoning being that you aren't given tax refunds when you lose, so it's unfair to tax when you win) Which becomes really interesting when you consider professional poker players.

pbhjpbhj 11y ago

Re freelancing - the context is that the prize is an industry award; they won it as part of their work and so if they're a sole trader it counts as income in the normal way and would be taxed accordingly. Gambling income is tax free in the UK as I understand it, you pay tax to take part (the tax at that end is greater unless the company pays out more than it receives!).

CatsoCatsoCatso 11y ago
Ah excellent, thanks for the clarity regarding the freelancing. Admittedly I skimmed those articles to try and claw the information as fast as I could. (Having a website which looks like the DailyMail open at work (even during break) isn't the best look!)