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Is there anything I have to consider when receiving prize money from the USA i.e. limits etc.

This is a hypothetical question as I have not won any money or received a scam email claiming that I have.

I have no citizenship in the US, the competition is similar to a game jam and I would compete in the UK but the company hosting the competition is based in the US. I am currently in the Basic Tax rate.

The prize money is around $30,000 or roughly £22,125.

I want to know if the laws will allow me to accept the prize money and how much I may get taxed.

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If it’s a competition, it would most likely be income, so you pay income tax. Not sure if you would have to pay NI contributions. If you receive support because your income is low, you might lose that.

And check whether the company running the competition will pay out to anyone outside the USA, often these things are restricted to residents.

For the tax rate, you say you are paying the basic tax rate, which goes up to £52,070 so you make less than that. Say you make £40,000. You’d pay 20% for the first £12,070 until you reach £52,070, and 40% on the rest.

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  • Thank you so much. The website for the competition says "if you are in another country, check your laws that you can accept the prize before competing". Although I never heard any laws in the UK that would prevent that, I got a little worried because of it.
    – Meerfall the dewott
    Commented Feb 28, 2022 at 9:46

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