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UK Gambling Firms Avoiding £250m Tax Each Year

UK Gambling Firms Avoiding £250m Tax Each Year

A recent report claims that Britain is missing out on £250 million a year in tax from online gambling profits as bookmakers are increasingly setting up operations into off-shore accounts in Gibraltar, Jersey and the Isle of Man.

UK Gambling Firms Avoiding £250m Tax Each Year

Thanks to loophole in the law, UK bookies are avoiding paying up to £250 million in tax each year.

The report has accused high-street names such as William hill and Ladbrokes as well as operators Betfair and 888. It is thought that the amount of money shielded by the gambling firms is greater than the tax avoidance carried about by Starbucks and Amazon, both of which have recently come under fire for their tax avoidance schemes.

The situation has arisen due to a loophole in betting duty rules, at present gambling firms are taxed according to where they collect a bet rather than where it is placed.

Therefore a bet placed on a computer in Britain is taxed where the money is sent rather than in Britain.

The government is meant to close this loophole, but not until 2015.

Ladbrokes claim that it avoided UK tax laws “reluctantly” after paying £155 million in tax in 2011. William Hill said that strong competition from abroad made it essential to relocate to Gibraltar.

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Raised close to London’s financial district, Ben has always found the world of business and money fascinating. While completing a degree in business studies Ben started writing for his university newspaper and hasn’t stopped since. Over the last decade Ben has gathered a wealth of experience writing about business and the financial markets and he is pleased to be able to share it with you here.

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