Spread betting and Personal Income Tax

Hi All,

I am just starting to trade Spread bets as a UK resident. I have read that this is still free of Income Tax.
If this is going to be my only form of income how should I be registered with HM Revenue and Customs?
Do professional Spread betters register themselves as self employed and then only pay NI?

Many thanks

AK

You're possibly making a fatal mistake and assuming that you're going to be making money. Making money from spread bets for a living is one hell of a touch job and the odds of you, me or anyone else doing it are very very slim.

So don't worry about the tax angle, that is the LEAST of your worries.

Instead, concentrate 100% of you efforts on making money, then worry about your tax situation.

Not having a go at you, just spelling it out as it is. I'd give myself the same advice

Thanks appreciated I fully realise that making a living from this is damn difficult. This is not my question though.
I still need to know how I should be registered with Inland Revenue and where it leaves me with regard to NI contributions.
I don't want to be on the wrong side of the law. Presumably the authorities would want me contributing to NI still??

THanks

AK

Please follow the link

cheerios

Magos

http://www.trade2win.com/boards/trad...-taxes-uk.html

As long as you are purely gambling with a spread betting firm then there shouldnt be any need to even contact the tax man as you arent self employed. Full time gambling against a bookmaker is not classed as self employment.

If you spread bet and those bets are related to taxable things then your spread bets might become taxable also. For example you sell spread betting seminars, or you use spread bets to hedge real stock or commodity positions you have in a normal brokerage account.

Otherwise you can enjoy your pofits 100% tax and NI free.

You should consult a tax expert if you think your spread bets could be liable for tax.

You don't need to do anything, just like if you had started going to the bookies to make a living out of the gee-gees.

I have been reading about this topic recently as well. I have yet to find a forum post that definitively states that HMRC has an uniform position on this issue, people say it is wholly tax free then others say it isn't. I believe this is an issue which excites a lot of passion and the arguments used contain layers of subtlety and context than can leave you quite unsure.

I personally like the comment made by 'nojmeister' at the top of this page on Taxation Web - TaxationWeb Ltd • Professional Gambler & Income Tax : Income Tax - 3.

I find myself asking a hypothetical question. On the one hand, Is it possible that HMRC is saying to people who gamble/bet now and again for a spot of fun, we don't mind you having fun and we could tax your income but we're not going to. Though on the other hand if you are going to approach this as a business then we think you should pay tax just as any other business would do.

Were an imaginary person to put up £1 million to say ' I would like a court ruling on this topic and I am prepared to cover mine and HMRC's legal costs to get it' then I think this topic would be a lot clearer. Until that point it would be prudent to seek professional advice.

Good luck with your trading.

jorune

see it from the horse's mouth Trade: exceptions & alternatives: betting and gambling: introduction

good trading

jon