How Complicated Is/Are Tax Reporting/Returns?

Nowler

Experienced member
1,517 225
Hey folks!

The simple question is, generally speaking, how easy is it to do my UK tax reporting/file tax returns for a Stocks & Shares portfolio, and CFD trading account?
I am not very mathematically gifted, though I can use a calculator lol


To make this more complicated:

Is there any difference from the general if we factor in things like:

- I am Irish living in the UK
- My stocks and share portfolio only holds US, Canadian, and Australian assets (no UK)
- I believe I am non-domicile in the UK as I am not here long, and don't plan on being here past 2025

Do any of the above change things, or...?

Thanks in advance.


Oh & PS...
When doing my tax returns, I only need bottom line gains, losses, interest & dividends right?
I don't need to trawl through all my buys & sells?
 
Last edited:

Atilla

Legendary member
19,822 3,092
Anyone got anything to say on this?

Hi Nowler,

Have you tried the Which Tax Calculator. Somewhile back they used to have a software that did it all for you and submitted to gov.uk site at the click of a button.

https://www.which.co.uk/money/tax-c...lc&utm_content=button-cta&utm_term=income-tax

All the forms were available and they had lots of good advice and answers to questions. Context-sensitive help was really good too.

Otherwise would advise you find a good accountant. I always say a good solicitor or accountant expense is money well spent.


ATB (y)
 
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Nowler

Experienced member
1,517 225
Hi Nowler,

Have you tried the Which Tax Calculator. Somewhile back they used to have a software that did it all for you and submitted to gov.uk site at the click of a button.

https://www.which.co.uk/money/tax-c...lc&utm_content=button-cta&utm_term=income-tax

All the forms were available and they had lots of good advice and answers to questions. Context-sensitive help was really good too.

Otherwise would advise you find a good accountant. I always say a good solicitor or accountant expense is money well spent.


ATB (y)

Hello mate!
Oh wow! I didnt know this was a thing...
Thanks very much for the info!

After a quick look at the link it seems perfect for a pleb like me :D

Do you know if it matters that my portfolio only holds stocks/shares from non-UK companies?
Would I be liable for the same amount regardless?

Ive taken note of you last comment about a good accountant/sols.
I've see the difference between good and bad solicitors through my place of work, lol
 
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BigDeal

Active member
113 55
I am not an accountant, but I an in Self Assessment and complete a return every year. This is what I think:

You are not on their radar, but I'm pretty sure you would have to declare if you've made capital gains in excess of last years allowance (£12,300). You would also then have to record your dividends. although you've probably paid tax on these in the associated countries already so wouldn't be taxed further as I'm sure the UK has a reciprocal tax arrangement with the countries you mention.

As for your resident status - well, I studied this years ago, and it was complicated then, so not sure what the score is now, but there may well be different rules for you based on your residency and domicile status.

Your PS is correct, you do not have to list all trades separately for HMRC, but would need the detail if they queried your figures - I know this bit from experience :)
 
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Nowler

Experienced member
1,517 225
I am not an accountant, but I an in Self Assessment and complete a return every year. This is what I think:

You are not on their radar, but I'm pretty sure you would have to declare if you've made capital gains in excess of last years allowance (£12,300). You would also then have to record your dividends. although you've probably paid tax on these in the associated countries already so wouldn't be taxed further as I'm sure the UK has a reciprocal tax arrangement with the countries you mention.

As for your resident status - well, I studied this years ago, and it was complicated then, so not sure what the score is now, but there may well be different rules for you based on your residency and domicile status.

Your PS is correct, you do not have to list all trades separately for HMRC, but would need the detail if they queried your figures - I know this bit from experience :)

Thanks for the input mate!

The taxable stocks/shares I own are through a European broker, and are for Canadian, Australian and US companies.
The dividends wont be an issue this time around for sure as it won't exceed this years allowance for my taxable accounts.

CGT might not be an issue next time around anyway, but I cannot say that for sure.
I just thought it best to get up to speed with this stuff now before it becomes an issue.
Particularly as I don't quite understand how things may vary since I am an Irish citizen, living in the UK for a relatively short time, with no UK stocks in a European brokerage account.

In regards to listing all my trades - hopefully they never ask. Then again, my broker should be able to provide a neat list of buys and sells.

Thanks again for taking the time to comment ;)
 
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Parky

Well-known member
260 32
The main factor is this. Is your main income derived from your trading? If you are trading for a living you have to pay tax. Anyone who thinks they can earn and making a living without paying any tax is totally deluded.
 

Nowler

Experienced member
1,517 225
The main factor is this. Is your main income derived from your trading? If you are trading for a living you have to pay tax. Anyone who thinks they can earn and making a living without paying any tax is totally deluded.
You have to pay taxes on trading income if you dont trade for a living too...
Provided you made a certain amount of profit of course
 

tomorton

Legendary member
8,403 1,338
If you use a spreadbetting account in the UK to trade there will never be any tax liability. You don't even have to report the winnings to HMRC.
 
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Parky

Well-known member
260 32
Not true. Nobody in the UK can earn a living tax free regardless of the source or instruments involved. If your principal source of income is trading, wether it be spreadbetting, CFD's or straight gambling you will have to pay tax. Anyone who thinks they can earn a living in the UK without making a tax contibution needs to to take professional tax advise....FAST.
 

Parky

Well-known member
260 32
Selling Lego on Ebay, is that taxable? No.
Make a living from selling Lego on ebay is that taxable? Yes.
Casual spreadbetting via a platform taxable? No.
Make a liviing from Spreadbetting via a platform taxable? Yes.
Big difference.
 

1nvest

Well-known member
309 109
Not again, how many times!
Just read this thread, i needn't repeat myself.
 

Parky

Well-known member
260 32
Yep my sentiments exactly. Anyone who expects to earn a living in the UK and pay no Tax can expect a big bill (or worse). Regardless of the instrument you are trading.
 
 
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