Bingo is an exciting game by itself, but when you win money playing Bingo it is a twice joyful time to celebrate, until you come into the account of having to claim those bingo winning for tax purposes, and the larger the amount of money won, probably the bigger your concern.
The news is that in the United Kingdom about claiming those winnings are now clearly explained in a new bingo taxation law that benefits players on the one hand, but enforces the claiming of bingo winning on the other hand. Past August 2012, Chancellor Gordon Brown announced changes to the law following a the proposal of the Bingo Association renews calls for 15% tax rate over bingo to provide offshore rivals with further advantages.
The new taxation law, however, kept in mind all bingo players offering now bigger prizes and cheaper tickets, so the government plans are taking a bigger tax slice upon bingo clubs rather than charging directly any tax over players’ winnings and stakes. With this measure, the UK government expects to reduce that tax burden on the bingo industry by near £35 million a year, although small bingo halls fear the impact makes the close their doors in the near future.
Bingo, the Most Popular Game in the UK
Although there is not an official survey on this matter, the government estimates that near three million British citizen’s play bingo more than twice a week despite there was a 10% tax applied on their stakes. However, with the new bingo law regulations, the bingo operators will pay a 15% on their gross profits, replacing by this action the tax that they applied directly to the players in their ticket prices. To find information on bingo sites in the UK check out BingoSites.com as they have a complete list with good reviews.
Players and the Gross Profits Tax (GPT)
Treasury’s Economic Secretary John Healey says that the new measure will boost the opportunity to get the bingo clubs delivering higher prizes at lower prices, an action that will benefit bingo operators and bingo players alike. In the UK, the Bingo Duty requires that bingo operators claim their profits, but as a player, you might be lost amidst all the information derived from the approval of the new Gross Profits Tax, that does not substitute nor redeem the VAT on bingo. Therefore, it is always a good idea visiting the HM Revenue and Customs website to find out how bingo tax law affects your bingo winnings, considering that in the USA the claim of bingo winning is mandatory.
Certainly, nobody likes the idea of having to share bingo winning with the Treasury, when the idea is making money, not giving part of it away. However, the United Kingdom is often infamous for having some of the most bloody tax regulations in the world, not just in gambling but also in many other aspects. However, the best way to keep your peace of mind is reading the new bingo law regulations, available at the Parliament’s documents area, or downloading the document directly from this link, www.parliament.uk/briefing-papers/SN02151.pdf