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Posted Wed, 03 Jan 2024 23:04:51 GMT by
Hello HMRC Community! I had filed few Self Assessment forms before, but this year - I have a question that I'm not able to find info on online. In 2022 I've participated in a Software Engineering Hackathon in Helsinki and as part of a competition which had ~15-30 teams, we won. Thus as a result I had 2 cash payments: 1. The prize for the competition was cash that was given to me. 2. Also, hackathon organizers partially covered the plane tickets with a cash payment. For now my assumption is that I have to report both of this cash payments as part of my SA. However would like to get definite answer on this. As haven't found relevant info on similar cases. (I'm not sure if it is covered by definition of the foreign income, as I was not employed and it was just a weekend event). If my assumption is correct and I have to report either both of the payments of any of those - whish section of the SA should be used? Thanks!
Posted Wed, 10 Jan 2024 17:43:59 GMT by HMRC Admin 25 Response
Hi Yurii T,
Prize money, goods and any incidental expenses awarded on entering a competition would not be taxable,
As long as they are not considered as a normal source of income for customers trade, vocation or profession and they do not arise out of the customers employment.
So, if the prize is connected with the customers trade or profession etc then the general rule is that it will be taxable.
An example would be the sports profession such as golf, snooker or darts etc or Authors and other creative arts professions.
Where it is seen as a normal part of the profession to enter related competitions and receive prizes for doing so.
BIM50710 sets out the general rule for authors, but can equally be applied to self-employment as income from the underlying trade.
You would include the income within the self employment along with any other receipts of the trade or profession.
Alternatively, if of a more casual or occasional nature it can be shown as miscellaneous income on the main return Page TR3 Question 17. 
Thank you. 

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