UK compers face the prospect of having to pay tax on their winnings and on their competition entries if new government tax proposals are finalised in The House of Lord. Under the scheme competition promoters would be forced to inform tax offices of entry details and winner details so that the new ‘compers tax’ can be collected. This would have some benefits to compers as it would mean that all competitions would have to be run properly and genuine winners chosen too.
5p In Tax For Each Competition
Government spokesperson Farina Lopstoil suggests that “each competition entered would cost a comper an additional 5p in tax”. So if you enter just 50 competitions a week you’ll be paying an additional £130 in tax a year. More prolific compers could be paying up to £1000 to the government just to enter competitions. But that’s not all, as you’ll also be liable for tax on your winnings too: “all winnings will taxed at around 25% including tshirts, DVDs, CDs and big prizes like cars and cash”. So if you win an iPod for example, and the prize value was £100, you’re going to have to pay an extra £25 in tax.
Who Was Farina Lopstoil?
This could have major implications for competitions in the UK and it will be interesting to see how promoters and compers react to this worrying situation. Update: Well it’s past midday, so well done to everyone who spotted that the story was just a little bit of April 1st fun. Farina Lopstoil = It’s an April Fool! Lets’ hope though this blog doesn’t give the powers that be any idea though!