I've been chatting to a couple of snooker players: one is a member of the professional body and plays on the main circuit, the other is an amateur, who has been lucky enough to qualify to play in some professional events by virtue of his ranking as an amateur, and both have raised queries about taxation of prize money.
The pro is relatively straight forward, but what about winnings from entering a regular pro-am at his local club? It is a totally open competition which attracts a reasonable number of lower and mid-ranked pros. Prizes are funded mainly by entry fees and a small amount of sponsorship. The competition is organised by a couple of indiviuduals, and the club just agrees to act as host venue. Presumably the pro should declare these winnings as part of his business income.
As for the amateur player he has no income other than some minor prize money from amateur events (including the likes of the pro-ams mentioned above), and the couple of prizes from the professional events, along with some sposnorship. One of the prizes was earned at an overseas event and was subject to 20% withholding tax. He is obviosuly an aspiring pro, but are any of these earnings taxable? What about expenses, are any or all allowed?