There are always ways around everything...can always filter money through different meansScott wrote:So say your name is Lino and you have a bad 6 months where you only make 100k, you put it in the bank, whats the worst case scenario? Surely that much cash being banked from someone who does'nt work will cause suspicion. Even 100k banked over say 5 years for instance would raise a few eyebrows!
Blue Mist
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messiah wrote:Actually very dangerous, to have a document drawn up saying that you play fruit machines for a living. This looks dangerously like this is your business. Notwithstanding that winnings are exempt from tax, if you are trading then the profits of the trading would be subject to tax.
Much precedent here - e.g. most dividends are exempt from tax, but if you are a bank or insurance company and buy and sell investments as part of your trading activities then you are taxed on them.
Now the question comes down to whether you are trading - and we need to look at the badges of trade. A large number of frequent transactions generating a profit over all would certainly provide positive evidence that you were trading.
You would then be taxed on 20%/40%/45% of your trading profits (less the personal allowance). You would of course be entitled to a deduction for all expenses incurred wholly and exclusively in the course of the trade.
Just saying.....as it wouldn't be nice if HMRC turned round and demanded the last 20 years back taxes....
Well that to me seems to be a totally separate issue. As has been discussed before, winnings here seem to fall into a grey area somewhere between 'trading' and non-taxable winnings such as lottery/betting. I think without some sort of test case being heard, it would be difficult to surmise either way. I know that in my personal circumstance, I sent a letter to the Inland Revenue explaining what I did for a living and have heard nothing since. I think it would be unreasonable to now chase me for tax seeing as I was clearly seeking advice on tax at the time. I think in a lot of ways the legitimacy/credit scoring/etc... would make paying tax worthwhile. The accountancy would just be ludicrous, and because it's all in cash it's totally untraceable. I'm sure it's just one of those things they just aren't that fussed about. Prostitution isn't illegal as far as I'm aware, but you don't hear about whores filling in their tax-returns or asking for a receipt at the GUM clinic (do you pay for AIDS tests? Probably a contribution if you're there every week ;-) )
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I played a spiker a few weeks ago and died on a 4 start, this is the 2nd time it has happened to me, the 1st was years ago and no one believed me. I was on my own again and just had to laugh at the irony of it as my mate was over the road and didn't see it.superfeature wrote:I've been nicked 4 times for slottin and now I'm invincible, just think of it like surviving 4 question marks on spiker the biker.......
Eloquent response, although relying on difficulty of proving precise amounts of income is not likely to satisfy an angry taxman. Regarding your point about prostitutes, it is interesting that all the top us gangsters back in the day got done for tax avoidance rather than the somewhat more viscuous offences they were responsible for. And even if the taxman had responded they would have worded it in such a way to say they could revisit whenever they wanted. However, having written that letter you are in a far stronger position than others, as they could not prove you were hiding information from them, assuming you kept a copy of the letter, sent by recorded delivery etc. This will drastically reduce the length of tome they can go back to revisit the past.Noels Beard wrote:Well that to me seems to be a totally separate issue. As has been discussed before, winnings here seem to fall into a grey area somewhere between 'trading' and non-taxable winnings such as lottery/betting. I think without some sort of test case being heard, it would be difficult to surmise either way. I know that in my personal circumstance, I sent a letter to the Inland Revenue explaining what I did for a living and have heard nothing since. I think it would be unreasonable to now chase me for tax seeing as I was clearly seeking advice on tax at the time. I think in a lot of ways the legitimacy/credit scoring/etc... would make paying tax worthwhile. The accountancy would just be ludicrous, and because it's all in cash it's totally untraceable. I'm sure it's just one of those things they just aren't that fussed about. Prostitution isn't illegal as far as I'm aware, but you don't hear about whores filling in their tax-returns or asking for a receipt at the GUM clinic (do you pay for AIDS tests? Probably a contribution if you're there every week ;-) )