Tax free Casinos
Even though this may seem hard to understand, it is important to note that gambling winnings are taxfree for gamblers in England, Scotland, Northern Ireland, and Wales. As is to be expected, Her Majesty’s Revenue and Customs have no reason at all to cry wolf. This is because they are able to claim a sizable portion from the gambling industry in the form of a levy imposed on all gambling operators and taxfree casinos.
The United Kingdom Betting Experience
Whereas players in countries such as Macau, France, and the USA have to worry about gambling tax, gamblers in England get the privilege of retaining all their winnings. Actually, both online taxfree casinos and offline gamblers in the United Kingdom need not waste their precious time thinking or worrying about tax.
For those who may have been gambling for a while, they will be able to recall that they had to deal with betting duties a few years back. However, the duties were scrapped by Gordon Brown in 2001 when he was Chancellor of the Exchequer during that period.
The government had no option but to introduce new changes at the beginning of this century. In part, this was due to the sudden rise of offshore betting, which many in the government perceived to be a serious threat due to its massive popularity with the British residents. However, this move came to be a first, in many other notable developments.
It was followed by the enactment of the Gambling Act 2005. The act led to the establishment of the UK Gambling Commission. It also led to the regulation of all tax free casinos and online gambling platforms. If you live in Northern Ireland, Wales, Scotland, or England, all your gambling winnings will not be taxed, regardless of whether you play on the internet or live.
The research we at casino advisers have conducted has led us to believe that the regime actually makes a virtual killing from gambling-allied activities. For instance, when we looked at the figures from the 2016-17 fiscal year, we came to note that HM Revenue and Customs collected a total of 2.7billion pounds in the form of game-related duty.
Even though this particular figure also includes remote gaming, live gaming in taxfree casinos, betting, and lotteries, the reality is that this amount is quite astronomical. Of this, a great deal can be attributed to the fifteen percent tax levy that is paid by all gambling platforms.
As a player, you do not have to worry about paying taxes when you play, regardless of whether you win or lose. However, the regime does in fact tax the taxfree casinos, poker rooms, betting shops, and all other allied establishments for all the profits they make from the people frequenting their gambling platforms.
It is worth noting that although the player will not get to pay these fees in a direct manner, they are in reality built into their gambling odds. On the other hand, it is always nice to know that you have an opportunity to concentrate on playing your favourite online or live game as opposed to having to deal with all kinds of tax-related forms.
Placing Offshore Bets
If you have ever gambled online, then it is possible that you have noted that the industry is still growing. This is true whether casino advisers are talking about technological aspects such as mobile betting, the quality of games, taxfree casinos, or regulatory issues. As you have probably realised by now, many of the online casino platforms in the United Kingdom are all offshore based.
Many of these operations were initially all based in England. However, many soon came to the realization that it was possible for them to reduce their tax burden by opting to relocate their operations. By basing their servers in other countries, it became possible for them to incorporate taxfree casinos in the jurisdictions where they were based.
In a bid to counteract the moves made by the taxfree casinos’ operators, the gambling commission in the United Kingdom has made it mandatory for all websites that welcome UK clients to ensure that they are fully licensed. This is regardless of whether their base of operations is in the UK or in another country.
Additionally, the taxfree casinos and other related establishments must also remit the fifteen percent tax that is levied upon their counterparts operating in Britain. As a casino player, you do not have to worry about ever dealing with such tax. Still, the presence of a level playing field helps reduce the chances of the regime introducing changes that can negatively affect bettors.
If you are into online gambling and like to try out the games being introduced on a frequent basis by the taxfree casinos, you will be pleased to note that Her Majesty’s Revenue and Customs has not made any distinction between casual and professional gamblers.
Although this may be subject to change in the coming years, at the moment, the government does not recognize gambling as a professional occupation or trade. It, therefore, makes no difference to the regime whether you earn a living playing skilled games like poker or trying out your chances on slots offered by taxfree casinos.
At the end of the day, you get to retain all your earnings so long as you are in the United Kingdom. If you play poker on a professional level, then chances are that you have already retained or consulted with a professional accountant.
For instance, casino advisers have come to learn that if you were to gamble in Las Vegas and win some money, then you would be subjected to what is known as a federal withholding tax. But the good news is that you are always welcomed to apply for a refund if you are a non-resident.
In addition, if you become really good at playing poker and become a poker celebrity, you would start earning money for making public appearances on taxfree casinos or for representing various online cardrooms. This means that you would be subjected to paying tax, but not on the winnings that you make from your poker games.