Income from betting / professional gambler

bet78

Hi there,

Just a question regarding the above. In the past year, I've started earning money betting on horses, this has come to a point where I am beginning to make a decent income from it so am interested in giving it a go full time. I spent most of the last two years travelling and doing casual freelance work so haven't been earning / in the country much for tax purposes. Am more or less settling here now, and plan to combine freelance work (journalism etc) with my betting activities. I'm wondering what my obligation to the state is here as regards paying tax. My primary income would be betting winnings, how do I account for that? This has all come about gradually and was never really something I had planned, I more or less stumbled on it. Haven't the slightest idea about the taxation side of things and there aren't many similar examples in Ireland, I've read about people in the UK but obviously the laws are different. Where to start?

Any advice would be appreciated!

Thanks.

srsly78

You would have to declare the winnings as extra earnings, then file a form11 self assessment form every year. Start by talking to an accountant.

Note that you cannot claim expenses for gambling.

nompere

UK Revenue have written on this subject:- http://www.hmrc.gov.uk/manuals/bimmanual/bim22015.htm and given the similar nature of tax legislation here and there, the majority of tax practitioners would see Irish Revenue adopting the same approach.

The main reason why HMRC (and probably the Revenue Commissioners) take this approach, and refuse to see gambling as a trade, is the converse. They would be swamped by the greater number of losers claiming loss relief.

There was an Australian case a few years ago that cast a little doubt on the traditional view - explained in this article: http://www.taxandlegal.ie/ITRJune2010.pdf

bet78

Interesting, thanks for taking the time guys.

Any further info would be much appreciated too!