Where does he stand? Gambling and the Dole

D Boyo

A friend of mine came to me with an interesting question tonight, he is pretty handy at gambling but started claiming the dole when he lost his job. Where does he stand as betting income is not taxable or am i wrong. I told him i'd ask on here.

Peregrinus

If he's claiming an insured benefit, on the basis of the social insurance contributions that he paid, then his income is irrelevant.

But if he's claiming a means-tested benefit, then his income is relevant. There's no rule that only taxable income is relevant; if he has income from gambling, he should disclose it, and if he doesn't he may be taken to be engaged in benefit fraud.

Delancey

A Professional Gambler must pay tax on their income from gambling so I would guess if your friend earns a living that way then he is self-employed and thus liable to tax and not entitled to Job Seekers Benefit/Allowance.
Someone correct me if I'm wrong ?

dats_right

Delancey wrote: »

A Professional Gambler must pay tax on their income from gambling so I would guess if your friend earns a living that way then he is self-employed and thus liable to tax and not entitled to Job Seekers Benefit/Allowance.
Someone correct me if I'm wrong ?

I am not sure that is right. I am aware that there is UK case law on this subject, which suggests otherwise. Certainly a professional gambler's income from appearances at tournaments, tv or whatever would be taxable but my understanding is that winnings from pure gambling are not taxable regardless of whether you are a professional or not.

Peregrinus

Delancey wrote: »

A Professional Gambler must pay tax on their income from gambling so I would guess if your friend earns a living that way then he is self-employed and thus liable to tax and not entitled to Job Seekers Benefit/Allowance.
Someone correct me if I'm wrong ?

He's "lost his job" according to the OP, which implies that he wasn't, at least until recently, living off his gambling earnings; he had a Proper Job. The gambling winnings might have supplemented his income, not represented most or all of it.

Even if, with many idle hours to fill, he has now stepped up his gambling and is earning more from it, that wouldn't necessarily mean that he is now self-employed. He could still be seeking work, and so entitled to claim benefits. But his gambling earnings would be taken into account in assessing his entitlement, and this does not depend on whether they are taxable or not.

Delancey

dats_right wrote: »

I am not sure that is right. I am aware that there is UK case law on this subject, which suggests otherwise. Certainly a professional gambler's income from appearances at tournaments, tv or whatever would be taxable but my understanding is that winnings from pure gambling are not taxable regardless of whether you are a professional or not.

You may well be right though I do remember a well known Irish Professional Gambler named Barney Curley owing revenue here and I'm sure I read somewhere that Lord Lucan prior to his vanishing act owed HM revenue from his gambling winnings ( he was a professional gambler ).

Can't imagine revenue not taxing someone who effectively earns a living from gambling

coylemj

Delancey wrote: »

You may well be right though I do remember a well known Irish Professional Gambler named Barney Curley owing revenue here and I'm sure I read somewhere that Lord Lucan prior to his vanishing act owed HM revenue from his gambling winnings ( he was a professional gambler ).

Can't imagine revenue not taxing someone who effectively earns a living from gambling

Claiming that you came into money from gambling is a classic way to launder money and/or avoid paying tax, isn't that the excuse Bertie Ahern used when at one of those tribunals?

I don't think gambling winnings are liable to any kind of tax.