Advantages of trading forex via a company?

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Old Jun 11, 2016, 5:20pm   #1
Joined Mar 2016
Advantages of trading forex via a company?

I have been researching forex and am thinking of trading via a Ltd company.

I understand that as a UK resident this is more advantageous in terms of tax, as I could draw dividends after paying corporation tax on any profits.

Any possible downsides?

I am thinking of opening up a trading account in the name of my existing personal contractor company.

Thanks!
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Old Jun 11, 2016, 6:40pm   #2
 
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Quote:
Originally Posted by rom1 View Post
I have been researching forex and am thinking of trading via a Ltd company.

I understand that as a UK resident this is more advantageous in terms of tax, as I could draw dividends after paying corporation tax on any profits.

Any possible downsides?

I am thinking of opening up a trading account in the name of my existing personal contractor company.

Thanks!
as a UK resident, spreadbetting you'd pay no tax at all
why would you want to pay corporation tax and be taxed on your dividend income as well
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Old Jun 12, 2016, 6:17pm   #3
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Worry about making money first.....paying tax is a bonus most traders never get a chance to worry about ....l

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Old Sep 4, 2016, 4:14pm   #4
 
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I am looking into the same thing. If u learn of any advantage/disadvantages trading as a inc. or llc. please do share.. thx
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Old Oct 1, 2016, 11:14pm   #5
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Originally Posted by rom1 View Post
I have been researching forex and am thinking of trading via a Ltd company.

I understand that as a UK resident this is more advantageous in terms of tax, as I could draw dividends after paying corporation tax on any profits.

Any possible downsides?

I am thinking of opening up a trading account in the name of my existing personal contractor company.

Thanks!
1) @malaguti don't spread bet you'll lose it all

2) @NVP is right

3) Don't do a LTD in the UK, do a trust in Jersey, this way you pay 0% forever, until you take the money out of the trust. Will cost you 2-3kú per year. When you accumulate enough money in the trust, move to Monaco for a year and take it all as profit, you're taxed 0% again.

4) @doodboy if you're in the US, you want to do a delaware LLP or cayman LP so that you're taxed only when you take the money **out** of the company. This way if you make 1m$ in Y1, lose 1m$ in Y2 and make 1m$ in Y3, you only pay taxes on the 1m$ you take out, instead of paying in both Y1 and Y3.
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Old Oct 2, 2016, 4:00pm   #6
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and don't get clever .....the Taxman will hunt you down .........and if you are ever skillfull enough to make some money beware the taxmans grasp..........if you are not working or retired he will look at the income as potentially taxable ..........people can come on here and argue but the definition of TAXFREE is actually pretty thin if you start to make a decent few quid and cant pass it off as secondary income streams

and if you open a company to trade you have just opened the door on being taxed anyway ......although you can then offset expenses against any profits which is useful if you also open up a training arm to the business....

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Old Oct 2, 2016, 4:05pm   #7
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and don't get clever .....the Taxman will hunt you down .........and if you are ever skillfull enough to make some money beware the taxmans grasp..........if you are not working or retired he will look at the income as potentially taxable ..........people can come on here and argue but the definition of TAXFREE is actually pretty thin if you start to make a decent few quid and cant pass it off as secondary income streams

and if you open a company to trade you have just opened the door on being taxed anyway ......although you can then offset expenses against any profits which is useful if you also open up a training arm to the business....

N
I think you don't understand the definition of Income. Income is money that you make personnally. Yourself. On your account. This has nothing to do with money a corporation makes. And you, as a shareholder of a corporation, are not taxed for the money a company makes. You are taxed for dividends you take out of it.

Otherwise the taxman would ask you a % on the 600Bn$ Apple made because you own shares in Apple.

The concept of a Holding company (e.g. a limited company used for business purpose) is widely accepted and you can make a holding company in the UK or elsewhere, depending on where the management of the holding company will be located.

You'll still need to pay taxes on it.... but you'll be able to avoid paying it twice (!) when you lose money on the market or in any other investment you may do.
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