Personal Betfair or corporate Betfair and tax

[Borisbulldog18]

Anyone have any view on this please for tax?

I am systematically trading sports via api. If I were to become a company (so I can legally share splits of the business with my partners) then use a corporate Betfair to bet would I likely be liable for tax on winnings? The issue is as partners they don’t want to send large sums to my account and bet in my own name, with a company we can all ensure security of funds.

Also any corporate uk bank account recommendations so I can put money in Betfair as a company. Will any uk banks give me an account where I can put cash in Betfair or do I need to go offshore?

All help is welcome tvm.

[tumby]

I use a private company for my sports betting. Your company will have to pay corporation tax on its final profit for the year but thats after deducting any costs. I put all my internet costs through my company and all computer costs, I buy a new PC about once every 2 years. You can also pay yourself a salary which reduces the companies costs. Obviously that salary will attract income tax for you personally but in my case this is my only income so if I keep the salary below the tax allowance then I pay no income tax at all. You have to watch out for NI but there is a level where you and the company will not have to pay any NI but you still get credits towards your state pension.

Having said all that if you still have a profit then yes you pay corporation tax.

I use Natwest for my corporate account, i regularly withdraw money from by betfair account without any problem.

[Borisbulldog18]

Awesome , thanks you very much. I imagine your corporate business type must be something very vague. If I say gambling to NatWest they simply reject me at outset. Any ideas there?

[ShaunWhite]

The issue is as partners they don’t want to send large sums to my account and bet in my own name, with a company we can all ensure security of funds.

That seems like a really expensive way to do it. What sort of amounts are you taking about? I don't see many markets where you can stake amounts that mean you'd need an investor.

[tumby]

Awesome , thanks you very much. I imagine your corporate business type must be something very vague. If I say gambling to NatWest they simply reject me at outset. Any ideas there?

Originally my company was something like "securities dealing on own account" as thats what I started off doing, now its is "gambling and betting activites". Maybe it was easy for me as I wasn't using my company for "gambling" when I started the company.

[Borisbulldog18]

Thanks for replies it just seems impossible to get a corporate gambling account…..sums are not insane but big enough to care about splitting in pooled company name.

[emjay]

Gambling profits are tax free in the uk and conversely you cannot claim tax relief on any losses. HMRC do not consider gambling to be a trade. Why anyone should want to use a limited company to put their gambling through surprises me. Try googling your question and you should find confirmation of this.