Alliance01
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Deliberating going full time trading on own account. By trading I mean sports and spreadbetting UK and us names and indices. Am I as well of just to trade in my own name or set up some sort of company?
going full time - what structure?
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Lee Shepherd
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Hi Alliance,
If you set up a company you will (very possibly) be liable for tax plus taxed again from what you pay yourself as an employee of this company, although I don't know this for sure. What I do know is that it's an odd way to do this and totally Unnecessary.
As you are spreadbetting, keep it simple. You gamble, you win or lose - that's it - tax free - no paperwork or hassles with the Inland Revenue. (except maybe 1 meeting) - Unless of course you wish to pay tax, some people need to register their winnings (earnings) or create a company/business for tax purposes so they can get credit/mortgages etc.
Lee
You should only worry about taxes when you are winning in this game, else its irrelevant.
Also, why are you spreadbetting? Do you get volume information from your spreadbetting company? People need to wake up and realise spreadbetting is actually an advanced trading tool that should only be used by the well informed. You should open a proper DMA account and if possible avoid scalping because the maths doesnt work unless your very very good and extremely self disciplined. That knowledge took me 7 years to acquire. Dont kid yourself. This is a long painful game and the most important issue in it is not the market.. its your psychology.. who you are, what makes you do things how to stop the impulses and how disciplined are you? Heres the number 1 question that will tell me how successful you will be as a Trader.. ready? DO YOU HAVE A WRITTEN PLAN DETAILING HOW YOUR GOING TO TRADE with the entries and exits you will use? If not youre not ready to trade. Simple.
Also, why are you spreadbetting? Do you get volume information from your spreadbetting company? People need to wake up and realise spreadbetting is actually an advanced trading tool that should only be used by the well informed. You should open a proper DMA account and if possible avoid scalping because the maths doesnt work unless your very very good and extremely self disciplined. That knowledge took me 7 years to acquire. Dont kid yourself. This is a long painful game and the most important issue in it is not the market.. its your psychology.. who you are, what makes you do things how to stop the impulses and how disciplined are you? Heres the number 1 question that will tell me how successful you will be as a Trader.. ready? DO YOU HAVE A WRITTEN PLAN DETAILING HOW YOUR GOING TO TRADE with the entries and exits you will use? If not youre not ready to trade. Simple.
Alliance01
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Don't disagree with most of your sentiments here. Might have worded it differently but there you go! In answer to your question; yes, I do have trading plans. An overarching set of principles as well as detailed plans and strategies for each market. They took a huge amount of time to develop and are very much living documents that get refined and tweak with each new experience.
lol...don't think I've ever had a written plan but manage to trade full time and have made constant profits over a long period of time trading equities.
That's the beauty of the markets so many different personalties and so many different ways to be successful...nothing is balck&white!
Just trade in your own name no need to set a company up for a sole trader.
Only one thing would say before committing to going full time is make sure you have plenty of capital/margin behind you before taking the plunge...minimum 100k as margin and look to make 2% + per month. Doesn't sound a lot but longevity is the name of the game!
Hope it goes well for you
Soloquan
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lol...don't think I've ever had a written plan but manage to trade full time and have made constant profits over a long period of time trading equities.
That's the beauty of the markets so many different personalties and so many different ways to be successful...nothing is balck&white!
Just trade in your own name no need to set a company up for a sole trader.
Only one thing would say before committing to going full time is make sure you have plenty of capital/margin behind you before taking the plunge...minimum 100k as margin and look to make 2% + per month. Doesn't sound a lot but longevity is the name of the game!
Hope it goes well for you
Total contradiction.
Alliance, I learnt a long time ago to stop listening to horse s**t like this in forums.
Mate, look at your life. You know how much you need to survive. If you're married with kids or living in a damp bedsit. The amount you need differs. 100K
I spread bet for a living. I have no job. I make make more doing this than my previous crappy job therefore I could leave that job. You only have to ask yourself that question.
AM I MAKING MORE FROM TRADING THAN I AM IN MY CURRENT JOB?
If the answer is yes then quit your ****ty job. But don't listen to anybody else except YOURSELF.
NVP
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trade as an individual first of all .............unless you are trading on behalf of others as well and responsible for their money - then some form of seperate entity recommended (although this doesnt prevent angry investors kneecapping you if you lose their money)
worry about Incorporation and tax when you are making serious and regular profits
N
worry about Incorporation and tax when you are making serious and regular profits
N
Hoggums
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Spreadbetting and other Forms of betting are only tax free for individuals. For starters any SB firm won’t allow you to open an account under a company name and you lose all benefits of it being a tax free vehicle.
My advice is to consider doing it as an individual. If you start to make money then you can look into other ways to trade. But the fact you are even asking this question makes me think that you won’t get that far.
My advice is to consider doing it as an individual. If you start to make money then you can look into other ways to trade. But the fact you are even asking this question makes me think that you won’t get that far.
rubbish it isnt completely tax free....
Quote " Most traders are also not liable for Income Tax unless they rely solely on their profits from financial spread betting to support themselves"
reference: Spread betting - Wikipedia, the free encyclopedia
The Leopard
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I have good reason to believe this is incorrect. My source is not wikipedia or the local tax office, both of which have been known to make errors.
The Leopard
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Relying on Wikipedia for anything is not best practice
.But the same can be said for local tax inspectors (over the years I have seen a number of people who have made decisions based on what the local office has told them). I can give you some shocking examples of how wrong they can be.
If you are serious about this, you need to consult a specialist. If you speak to HMRC, don't go to the local office for an answer.
My accountant assured me some years ago, at time I had no other means of income, that no forms of trading would ever convince HMRC to put me on income tax. He advised it did not matter what trading vehicle was used, how much the income was or how many hours / trades per week were involved, his practice would never recommend such an approach to HMRC as it would be bound to fail.
I wouldn't mind being convinced his advice is now incorrect - but seems to me the only people who can speak with authority here are either a) HMRC, or b) a trader who actually is subject to UK income tax and whose sole means of support is SB profits. Happy to hear from either.......
I wouldn't mind being convinced his advice is now incorrect - but seems to me the only people who can speak with authority here are either a) HMRC, or b) a trader who actually is subject to UK income tax and whose sole means of support is SB profits. Happy to hear from either.......
ChocolateDigestive
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Relying on Wikipedia for anything is not best practice
But the same can be said for local tax inspectors (over the years I have seen a number of people who have made decisions based on what the local office has told them). I can give you some shocking examples of how wrong they can be.
If you are serious about this, you need to consult a specialist. If you speak to HMRC, don't go to the local office for an answer.
what about if I trade the account of my friend who lives in the British Virgin Islands, he doesn't pay tax over there. He is good friend though, I pop over there every few months to collect my cash give him 1% for his trouble. :clap:
i have to take 3 pils in the morning to keep it at bay but that still doesnt help.. sorry if i hurt your feelings
The Leopard
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If it is a hand shake and a wink type arrangement then there is no contract, and no Tax.
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