Full time job, more profits trading

[breadman]

Does anyone know what the tax situation would be if you had a full time job 40 hrs a week earning 25000 a year but made trading profits of 30000 spread betting.

Thanks,

Breadman

 

[roguetrader]

Spreadbetting as I understand it from these boards is non-taxable

 

[roguetrader]

If you were trading stocks as a daytrader the calculation would go along the lines of, first 8200 tax free, remainder 40% cgt

 

[pcj]

Does anyone know what the tax situation would be if you had a full time job 40 hrs a week earning 25000 a year but made trading profits of 30000 spread betting.

Thanks,

Breadman

It,s my understanding that spread betting is TAX FREE :cheesy:

As someone who's new too spread betting myself ,i'd worry about making profits first
and deal with the tax issue if and when it arises

 

[Roberto]

Does anyone know what the tax situation would be if you had a full time job 40 hrs a week earning 25000 a year but made trading profits of 30000 spread betting.

I'm not a qualified accountant but this is sufficiently similar to a matter I've discussed in the last year with 2 specialist accountants and 2 inspectors of taxes to be happy to offer my opinion, as follows: the tax situation will be that you can declare all your spread-betting profits openly to the Inland Revenue (with supporting documentation, of course) and not have to pay a penny in tax on them. And that would also be true if you made the same £25,000 a year from your main job and £300,000 from spread-betting (you should be so lucky!). It doesn't matter which figure is the larger. It doesn't matter which figure anyone can allege is your "main income". The only thing that might possibly alter the situation in future would be if the spread-betting income were your "SOLE income". And even then, with the law as it stands now, the I.R. would be very hard put to assess you for tax on the spread-betting profits. You're welcome to send me a PM if you'd like more detailed information or if you think I might be able to answer any questions, and I'm happy to try.

 

[pcj]

Good Advice From Roberto

I'm not a qualified accountant but this is sufficiently similar to a matter I've discussed in the last year with 2 specialist accountants and 2 inspectors of taxes to be happy to offer my opinion, as follows: the tax situation will be that you can declare all your spread-betting profits openly to the Inland Revenue (with supporting documentation, of course) and not have to pay a penny in tax on them. And that would also be true if you made the same £25,000 a year from your main job and £300,000 from spread-betting (you should be so lucky!). It doesn't matter which figure is the larger. It doesn't matter which figure anyone can allege is your "main income". The only thing that might possibly alter the situation in future would be if the spread-betting income were your "SOLE income". And even then, with the law as it stands now, the I.R. would be very hard put to assess you for tax on the spread-betting profits. You're welcome to send me a PM if you'd like more detailed information or if you think I might be able to answer any questions, and I'm happy to try.

Documentation should always be kept on all your trades as this also helps on various levels
monitoring and refining your trading style , seeing were you go wrong etc.
As well as declaring your profits too the inland revenue ,if you were too have a win over a few thousand pounds and payed it into a bank the bank have to ask questions regarding were this money came from (this happened to me last year when a 2000 pounds bonus was payed into my account by my employer, I was grilled by the bank manager about my employment details)
Hope this is some help and good look

 

[roguetrader]

(this happened to me last year when a 2000 pounds bonus was payed into my account by my employer, I was grilled by the bank manager about my employment details)
Hope this is some help and good look

I would have told the bank where to get off, if they have some issue with what they suspect to be unusual or suspicious transactions then they can report that to the appropriate authorities, I have regularly, or more importantly, irregularly paid various sums into my bank accounts, all above board, and never has anyone from any bank queried this. A wise decision in my opinion

 

[pcj]

Apparantly it's due to money laundering laws that came in to force in 2003.

I manager was very apologetic after he realised everything was above board , or was it due to the fact that I explained that I had a morgage , loan , credit card , isa, and shares through there
branch. :twisted



WHAT WOULD SCOOBY DO!!!!!!!! :cheesy:

 

[roguetrader]

Yeah realize what you're saying pcj, just that sort of thing really lightsmy fuse If the Inland Rev or some other appropriate authority comes to me, no probs, I can accept that, but some jumped up little twat in a bank!! As you can probably tell I don't have great affextion for banks.

 

[Roberto]

... but some jumped up little twat in a bank!! As you can probably tell I don't have great affextion for banks.

I know what you mean ... bloody liberty, isn't it? But pcj is right: it's the new banking regulations introduced post-9/11 in an attempt to make it harder for terrorist funding through money-laundering. Or so my bank tells me whenever they want me to explain "atypical deposits" (which I always think sound more like something a zoologist might deal with).

 

[pcj]

Take it from me , The reply i gave him didn't get me any invites to there christmas party!!!!! :evil

Reminded him that he was the man who managed to send me a new credit card
unfortunaterly it was sent to Cornwall !!!!
You can see from my login i live in Cumbria.

just a distance of about 400 miles.
A easy mistake to make.




WHAT WOULD SCOOBY DOO!!!!!!!!!

 

[starspacer]

Don't be too harsh on the bank staff. The bank top brass scare the living daylights out of staff by telling them that they are personally criminally liable if they let a money launderer slip through.

The reason that most banks are useless is that staff numbers have been slashed and government regulation means they have to employ an army of bureaucrats, instead of customer service people.

 

[DIN]

I would have told the bank where to get off, if they have some issue with what they suspect to be unusual or suspicious transactions then they can report that to the appropriate authorities, I have regularly, or more importantly, irregularly paid various sums into my bank accounts, all above board, and never has anyone from any bank queried this. A wise decision in my opinion

me too. we have had major building works over the last 12 months and there has been large amounts of money flying through the ether, large cash withdrawls, large BACS transfers etc. with very minor questions on transfers and withdrawls.

e.g.

"what's it for?|
"builders"
"ok".

certainly no hard time.