How competition winnings are paid
At Grand Draws, prizes are cash and paid by bank transfer, straight to the winner's account, and we aim to pay within one working day of verifying the winner. There is no cheque to cash, no prize to collect and no cash alternative to negotiate, because the prize was cash to begin with. Before paying we confirm the winner's identity, that they are 18 or over and resident in Great Britain, and that the winning entry qualified. Then the full amount is sent with nothing deducted.
Cash, straight to your bank
Every prize is paid by bank transfer to the account in the winner's name. The figure advertised is the figure that arrives: a £1,000 prize pays £1,000, with no fees taken off the top and no tax deducted, because a prize won by a private individual is not taxed as income.
There is nothing to ship, collect or insure. Cash removes the whole awkward middle step that physical prizes create.
How long it takes
We aim to pay within one working day of verifying the winner. The bank transfer itself usually clears the same day or the next, depending on the banks involved.
The only thing that slows a payout is verification, which is why it helps to have your details ready.
The checks before a payout
Before paying a prize we confirm three things: that you are who you say you are, that you are 18 or over and resident in Great Britain, and that the winning entry met the terms, including a correct skill answer. It is a light-touch check, there to make sure a prize reaches the real winner and no one else.
These checks apply equally to paid and free postal entries. Winning by post is paid exactly the same way as winning on a bought ticket.
What we publish about winners
Every winner is published with their first name, county and winning ticket number, so the result can be matched to the draw and recomputed by anyone.
The CAP Code asks promoters to publish or make available information showing that a valid award took place, ordinarily the surname and county of major winners, so a winner's surname and county are available on request.
Why we pay cash and not prizes
Physical prizes look good on a poster and cause problems in real life: a car has to be delivered, taxed and insured, a watch has to be sold on if you would rather have the money, and both have to be valued and stored in the meantime.
Cash skips all of it. You get the amount, in your account, to do whatever you like with. It is the simplest, and to our mind the fairest, way to hand someone a win.
Sources
- CAP Code, section 8: promotional marketing (ASA)
- HMRC Business Income Manual BIM45090: prizes and incentives, tax treatment of recipient (gov.uk)
- DCMS: Voluntary Code of Good Practice for Prize Draw Operators (gov.uk)
Checked against these sources on .
Common questions
How will I receive my winnings?
By bank transfer to an account in your name. We aim to pay within one working day of verifying you as the winner.
How long does it take to get paid?
We aim to pay within one working day of verifying the winner. The bank transfer then clears on the banks' normal timescales, typically the same or next day.
Do I have to pay tax on my winnings?
Not as a private individual. A prize like this is not taxed as income, so the full amount reaches you with nothing deducted. Any interest you later earn on the money is taxable in the normal way.
Is a postal winner paid the same as a paid entry?
Yes. A free postal entry that wins is paid exactly the same way, by bank transfer, on the same timescale, with the same checks.