tax credits and us..

[Makipuppy]

I'm just about to apply for tax credits and would appreciate advice with our slightly bizarre situation.

We have a DS and will be looking after DN full time in a few months time. That's all ok.

We'll apply as a couple - I'm freelance and have my accounts ready. DP is a professional gambler and so his earnings (or winnings) are zero rated for tax. DP doesn't know how much he earns as it is all in different accounts with online bookies and very hard to track. He is also doing a part-time MSc. It is however a substantial amount, probably our main income in the household.

Any ideas how I can put this down honestly? Is he even entitled to tax credits seeing as he doesn't pay tax?

Professional gambler? Am intrigued.

There are lots of them said. Most of them lose hand over fist though, which is why the govt decided it would make more money if it encouraged them by not taxing winnings than it would make from the tax.

DP does it with maths, stats, smoke and mirrors.

Any idea about the tax credits though?

He needs to just ring HMRC and discuss this with them. There must be a way that he can calculate his annual ernings. He will need to provide them if applying for tax credits.

Thanks, so are your tax credits worked out on how much you earn, rather than how much tax you pay then?

Tax credits are paid on how much you earn after tax.

There is a section on the form for "other income" - this does need to be declared if over £300 a year. If he is a professional gambler he will be clearing the £300 disregard in a very short period so needs to work out his earnings.

thanks very much, really useful

Just a note - it's income before tax/NI you have to declare.

it says here, about 11 bullet points down, that income from betting is declarable.

NOT declarable, NOT declarable, God, when will I EVER check what I type.

Winnings from betting are NOT declarable. It is NOT remunerative employment.

How does one become a prefessional gambler then?

Seems DH is in the wrong profession if the gambling is the main source of income.

Thanks snigger but do you think he still has to declare it for tax credits? .

Lady, it's a job like any other, what DP does is work. He starts at 7am every weekday morning on the financial markets and works all weekend too as well as studying. He has a Phd that involves logic which is what he applies to the markets. Not just having a punt!

It causes lots of problems, you know, DP's income is way bigger than mine but now self-cert mortgages are hard to come by our borrowing will be based on my income because his is impossible to prove.

I'm wondering what the tax office will ask for to prove his earnings? He has money in accounts with several different bookies that sort of builds up before he transfers it to his bank account. He really doesn't have a very clear idea of any annual or even really a monthly amount.

So, a bit of a dearth of fellow wives-of-professional-gamblers on mumsnet then eh? (Or are they all busy with DH-gambled-the-house-away type posts in relationships ).

When you say markets, is there a share dealing element in his earnings or is it purely online gambling in the traditional sense, ie poker'n'ponies, etc?

According to the guidance it's fairly clear he doesn't have to declare betting income, however shares dealing may be a different matter dependant upon what he's doing, exactly.

As far as tax credits are concerned, if his income is from betting, it's not declarable, just keep an eye on the guidance or call and clarify (this is lesser known guidance, or rather, a less than everyday occurrence, so hold your ground and ask them to check the manual when you call in).

I'd say record keeping would be a good idea though, just so you have some accountability for the income.

By the way, just to clarify, the guidance I linked to is Tax Credits guidance for working out what income to declare as investment income.

Go to hmrc.gov.uk, follow the links for tax credits and then tax credits manuals till you get to the tax credit manual, go down to eligibility then click on income other than earnings. All the info's in those links.

Hi Snigger, that's an interesting point, he does a lot of share dealing but it's more betting on whether a particular share will go up or down within a short period, rather than buying the shares themselves, so still zero-rate I think.

So that link was for tax credits? Wow, will be amazed if he can get away with not declaring it as revenue. I always rather loathe him at this time of year, when I'm paying my tax...

Hiya.

Don't know about the gambling thing but I do know that they base this years award on last years tax year. So if you call now and can't estimate your DH earnings for the year it does not matter as they just want to know what you both earnt April 08- April 09. Hope this helps.

thanks Hando. he's going to get an accountant to run up some accounts - fortunately last year we were traveling so he didn't work much, we might get something.