Where Will Winnings Tax Be 1 Year From Now

Where Will Winnings Tax Be 1 Year From Now

48
views

Did you know that your gambling winnings in the UK are always yours, 100% tax-free? Because Americans are taxed for their winnings, many people mistakenly believe that they will be taxed on their gambling winnings too, as they would be taxed on any other transactions.

This used to be the case, but the practice of UK gambling tax has since been discontinued. Gamblers in the UK don't need to report their winnings, which also means they don't need to pay a single penny to the taxman.

So where does the UK government get their money? The answer is simple: they apply the tax to the operators rather than to the players.

Casino operators are required by law to declare their profits and pay 15% of their gross profit into the public purse. The primary goal of casino operators is to make money, so of course, they try to find ways to get around this law.

But this hasn't always been the case. Up until 2002, players had to pay a tax whenever they placed a bet. This law was removed in 2002 in order to keep the UK gaming industry competitive.

The casino operators were not too happy about the change, but it was great news for UK-based gamers. They no longer had to worry about the taxman taking a cut from their winnings.

Is the tax here to stay?

It's very unlikely that the UK approach to gambling taxation will be changed anytime soon. In the next year, you can expect things to continue to operate more or less the same as it does now.

As a player, you really don't have much to worry about; the chance of players being taxed again is fairly low. If there are in fact changes to the gambling laws, they will almost certainly affect the operators rather than players.

It's not likely that we will ever go back to a system in which gamblers are taxed. This is because of how the UK taxation system is now structured. If the tax were levied against players again, the players could actually claim allowances for their losses.

Since this would almost certainly result in a net loss for the government, there isn't much risk that they will return to the old system. You will likely continue to enjoy tax-free gaming for years to come.

Can operators avoid the tax?

Up until recently, it was fairly straightforward to avoid paying the 15% tax. You could simply set up your online casino in another country that offers a more favourable tax rate.

This is the reason why you often see casinos operating out of tiny countries. Malta and Gibraltar are two of the most popular destinations for casino operators. If you set up an online casino company in Malta or Gibraltar, you would have to pay those governments significantly less tax than if you operated out of the UK.

Unfortunately for the casino operators, this loophole has now been closed by the UK government. Operators are now subject to a so-called "Point of Consumption Tax".

What this basically means is that casino operators must pay the taxes that apply to the country from which the customer is playing in. This means casinos based in Malta or Gibraltar will still have to pay the 15% tax if the player is based in the UK.

Another loophole?

Given that the Point of Consumption Tax is eating into casino operators' profit margins and forcing them to raise their prices, you can expect to see some more creative methods of avoiding tax starting to surface. The casino gaming industry has always been innovative when it comes to paying as little tax as possible, and there is no reason you should expect that to change.

In the meantime, if you're keen on discovering new online casinos or reading more about gambling tax laws, visit CasinoGuide.co.uk.

Popular Right Now

To The People Who Think Their Insecurities Aren’t Valid, They Are And You Are, Too

Guess what. You're valid!

10
views

It's inevitable. It's summertime. It's the time of year when we see beaches full of beautiful people flaunting everything they have and perfectly staged Instagram posts meant to commemorate the amazingness of summer.

I'm sure you have seen so many inspirational messages preaching body positivity and loving yourself no matter what you look like. And although I adore and support all the love behind these messages, I always feel like those messages are missing something important.

Let's take a step back for a moment.

Accepting yourself the way you are is easier said than done. There have been numerous times when I wanted to change something about the way I looked. It is so important that everyone knows that if you are not at the point where you love and feel completely confident in your body, that is OK.

Self-love is oftentimes a difficult and nonlinear journey that jerks around in so many unexpected directions. There are days when I feel so beautiful and other days when I don't. That is OK.

You can preach body positivity and self-love all you want—and don't get me wrong, I absolutely believe that everybody and every body is beautiful — but let's not forget that there is still yet to be a significant and consistent representation of all body types in the media and elsewhere. And even if there was, it would simply be an attempt, because let's also not forget that every single body is different.

I feel as though I speak for a lot of people when I say that even though body positivity is becoming more and more present, it is still so difficult to not compare ourselves to others. The idea of the "perfect body" has become so instilled in us that I am worried the damage is beyond repair.

I am very petite, which we have been trained to think is conventionally attractive, but I still do not love how my body looks most of the time. One of my legs is a lot longer than the other and so one of my hips juts out noticeably more than the other. I don't wear a lot of tight clothing for this reason.

People tell me all the time that I shouldn't feel insecure about the way I look, but in my eyes, being reasonably insecure is natural and no one should be afraid to acknowledge that. However, let's not use that as an excuse to bask in self-pity this summer.

Yes, it is OK to not love everything about our bodies, but remember this:

You are beautiful. Every little piece of you. Every single day.

On the days when you have all the confidence in the world and on the days when you have none.

You're allowed to have insecurities no matter who you are, what you have, or what you look like. But regardless of what it may be, it will never detract from your beauty.

Have an amazing summer!

Related Content

Connect with a generation
of new voices.

We are students, thinkers, influencers, and communities sharing our ideas with the world. Join our platform to create and discover content that actually matters to you.

Learn more Start Creating
Facebook Comments