Business set up / tax question

zacharius

Hi

I am running a web based soccer pools-type competition each month - the basic jist is people pay a monthly 20 euro entrance fee, play the game and the top two get the pot split 80/20.

If the numbers entering grow significantly, I am considering taking a small admin/running fee from each entrant for running the competition - this started as a hobby but could possibly grow into something more.

My question is, what are, if any, tax implications etc. I am doing this now as an individual so would I need to register a company etc in order to legally do this I wonder?

I know the details are quite vague at the moment but would beinterested in any initial feedback anyone may have.

Cheers

Z

antoinolachtnai

I would take care that you do not end up running an illegal lottery. There is an Act about this (1956, I think). The interpretation of the Act is a little strange, so I would get legal advice if I were you.

You would have to pay tax on any profit you make, obviously.

You also need to be careful about how you handle stuff like unclaimed prizemoney.

finnpark

If your based in Ireland and keep things small you should be ok. It all depends how you take in the money, probbaly Paypal. Paypal will notify customs when you withdraw a few thousand I think so you will have to pay tax on this. Why not try take in a few thousand 1st and then worry about the tax when you withdraw it from your Paypal account.

Consultant

If your income grows significantly, it is better for tax purposes if you register a company. But you could do that after it proves that you receive a good income from your business project.