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Income from Kickboxing Competitions

An existing client sole trader has told us he also competes in Kickboxing competitions.

He says he has won 6 fights earning a total of £1,200.

I don't think this is a trade.

However, I do think it is taxable income - although we could reduce profit by deduction of expenses.

Any thoughts please?

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Hi, I specialize in sports professionals...

This income is taxable and is a trade (prize fighter)

The expenses in earning this income can be offset against it.

If you need any help, PM me

 

Steve

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As Steve says, the income is taxable.

 

Expenses to watch out for are licence fees, gradings, belts, protective equipment, competition entrance fees, insurance.  

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He's not an amateur

Does he consider himself a PROFESSIONAL fighter?

(There's a clue there.)

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Thanks guys.
Much appreciated.

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training

Out of interest, would training costs be allowable too ? and travelling to the gym ? 

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Losing

If this is not his full time profession, what happens when he loses? Will he have a loss position to offset each year if he does not ever win again?

Try for hobby status, no profit/no loss and see if HMRC bite.

 

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