I have gambled a bit and gained some money. How do I account gambling income ?
Also, i have mined some crypto-currency - how do i account this ? I know it is categorised as a gambling so i will greatly appreciated if somebody will help me to properly account this in quickfile.
Regarding the gambling, is this something you’ve done personally and put the money into the business, or is it the business’ funds that have been used? What type of business is it (e.g. Sole Trader, Limited Company etc.)?
Same question really for the crypto-currency - is it your own money and put into the business, or is it as a result of mining carried out by the business?
it is a Sole Trader money for both. (not personal money)
None LTD company.
And i have some money as a result of mining.
You would typically setup the exchange where you deposited the original funds as a Merchant type bank account. From your current account you when then transfer the initial sums invested.
Let’s say you invest £1,000 on 1st Jan, this is a transfer to the crypto exchange account. You then make a £9,000 gain and on 1st June you withdraw £10,000. This will leave the crypto account £9,000 overdrawn, to balance this enter £9,000 “money in” and tag that amount to “Miscellaneous Income”. The £9,000 is the gain that will be subject to taxation.
Pretty much the same concept applies to the proceeds from Gambling.
but as far as i know there is no tax for gambling as well as for crypto currency gains as they are classified as a gambling. So accounting this as a miscellaneous income will result on quickfile to include it for income tax.
It’s still income regardless of the tax treatment. If the income is tax exempt then this goes on as an adjustment in your tax computations when you file your tax return. That’s more of a question for your accountant.