Premium Charge Question

[Wesdag]

Could someone please explain how losses impact on the premium charge.

Assuming I'm in profit of course and have used up my allowance, if during a week I had:

£1,000 of winning bets
£500 of losing bets

so therefore net profit of £500
and assuming commission of 4%

would pc be payable and at what amount?

Thanks in advance.

[Cran]

Assuming you need to pay 20% PC and commission is 4% to keep things simple.

PC owed on the £500 profit is £100

But you already paid some commission on your winnings and implied commission on your losses (£1500 x 4% / 2) so that's £30 you already paid.

£100 - £30 = £70

So you'd pay about an extra £70 PC.

I think...

It's more complicated than that and I never bother trying to working it out, life's too short...

I'm sure someone else will correct me if this is wrong.

[Caan Berry]

I'm sure someone else will correct me if this is wrong.

You're not, probably the simplest explanation on it though that i've seen... well done Like you say a little more complicated and there are other rules to it which can effect things but not really worth the explanation lol

[Wesdag]

Thanks for the replies but I've managed to get the answer from elsewhere.

You've overlooked that the £500 loss would generate implied commission of 500 x 3% = 15.

Therefore: 40+15 / 2 = 27.5 which means PC of £72.50.

[Caan Berry]

No easy way around it... just have to accept it unfortunately :s