Christmas Quiz Answers: how did you do? Did you beat the AI? ChatGPT set its own questions, and to be honest, it would have benefited from a subscription to

Question 1

Santa's Income: How would Santa Claus report his UK income for tax purposes, considering he delivers gifts all around the world?

a) As a gift-receiving business.
b) Not applicable, as he works for cookies and milk.
c) As self-employed income.
d) Exempt from taxation due to magical status.

AI says: 

(C) As self-employed income.

We think that the real question is whether Santa Claus exists, but ignoring that point:

  • The terminology: 'a gift-receiving business': is odd and not in use in UK tax.
  • There is no tax exemption for 'magical status' anywhere that we are aware of!
  • Whether he is actually in receipt of any taxable income or benefits.
    • If Santa is employed: some benefits are Tax-free
    • Are cookies and milk classed as Trivial benefits as they are just refreshments?
  • Santa's residence for tax; he should consider the Statutory Residence Test
  • Whether Santa is chargeable to UK (or any other) taxes.

Scoring: We conclude that the nearest thing to a probable answer is (B) as Santa is not engaged in any business nor does he work for anyone.

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