When I first started betting on horses several years ago, I used to transfer funds back and forth, from my then only current account, into the betting accounts that I held with bookmakers and betting exchanges.
What a fool I was!
One day, I popped into the local branch of the bank I was with and asked for a mortgage.
I was puzzled and stunned when I was refused.
Please note that this was way before the credit crunch.
When the current account was initially set up, a modest overdraft limit was agreed with the bank.
To date, I had never exceeded the limit.
Whenever the current account became overdrawn, I always quickly transferred funds from the deposit account that I hold with the same bank into the current account.
I have one credit card. It has a fairly generous credit limit.
To date, I have never exceeded, or come close to exceeding the card’s credit limit.
In fact, I pay the balance of the credit card off religiously every month.
I have never had a County Court Judgement (CCJ) taken out against me.
I have never declared myself, or been declared, bankrupt.
As far as credit goes, I consider myself to be a model citizen.
I assume that I have a good credit rating although, I must confess, that I have never bothered to check.
On the few occasions where I have needed credit, I have never been refused.
Given all of this, I felt that I had every right to be both puzzled and stunned at being refused a mortgage.
Politely, I asked the reason for the refusal.
The reason that I was given was that my account statement showed that monies had been transferred between my current account and a well-known betting exchange.
I was therefore branded a gambler by the bank and, on that basis alone, I was refused a mortgage.
This was in spite of the fact that there was a positive cash flow between the well-known betting exchange and my current account.
I now reflect on the bank’s decision and the statement regarding my past mortgage application with some consternation given the recent events relating to the losses of billions of dollars which they incurred when the bank purchased a considerable amount of bonds backed by US sub-prime mortgages.
Perhaps I should now return to the bank and ask them to explain their past decision in the light of their gambling activities?
I also wonder how the appearance of the well-known betting exchange on my current account statement affects my credit rating.
In view of the above, I would strongly recommend that before betting activities commence, that a new current account is opened with a bank that you have had no connection within the past and that any transfer of monies to or from bookies and betting exchanges is effected via this new current account.
In this way, your existing bank will be none-the-wiser.
There is also another good reason for using a new current account for all of your betting activities. The dreaded TAX MAN!
I use the word ‘dreaded’ in a half-joking way.
I have always found ‘THE TAX MAN’ to be fair and helpful, but I just wish that he would be fair and helpful a little less often.
In the past, the UK tax authorities have notified me on four occasions that my financial affairs were to be investigated.
On each occasion, I was assured that I had been randomly selected and that there was no reason in particular for the investigation.
On each occasion, I was asked to provide a few basic facts and then, a few months later, I was notified that all was well and that nothing untoward had been unearthed during their investigations.
I was not surprised by this since there is nothing untoward to unearth.
Currently, under UK tax laws, all profits resulting from gambling activities are exempt from all taxes.
However, any profits which are made from such activities are more easily and more quickly explained to the UK tax authorities if a bank account is used for the sole purpose of supporting any and all gambling activities.
A separate bank account, through which all of your gambling activities are conducted, also ensures that any money-laundering accusations can be dispelled quickly and easily.
I hope that you are now aware how important it is to open a new bank account if you plan to derive an income from betting.