frugi
1
- Messages
- 1,843
- Likes
- 133
Without wishing to be rude I'd be interested to know how all you full time traders cope with the tax issues that arise from trading. An anonymous poll seemed the least intrusive, dangerous way of posing my questions. Please do not vote if you feel it may compromise your financial position in any way. The categories are a bit long winded I'm afraid!
SB = spread bet firm
DA = direct access
I trade full time through:
1. SB and pay no tax on profits and so far the Revenue hasn't questioned this.
2. SB and pay no tax on profits despite my informing the Revenue in writing that SB is my main source of income, a situation with which they were happy as they regard SB as gambling and collect more than sufficient revenue from the SB firms to worry about the likes of me.
3. SB and used to pay no tax on profits but then the Revenue became suspicious of my income source and decided it would tax me on it at the usual income tax rate despite telling the rest of you that gambling is tax free.
4. SB and used to pay no tax on profits but when I informed the Revenue that SB was my main source of income it decided to tax me on it at the usual income tax rate despite telling the rest of you that gambling is tax free.
5. DA broker and pay no tax on profits because they are less than the annual capital gains allowance (£7900)
6. DA broker and pay no tax on profits because they are less than double the annual capital gains allowance (£15800) and I have an understanding spouse
7. DA broker and pay capital gains tax
8. DA broker and pay income tax as a private individual, with regular expenses (e.g. datafeed, commissions, exchange fee) deducted
9. DA broker and pay some form of income tax (business tax?) from within a limited company that I have set up
10. DA broker and I avoid a large proportion of UK tax by placing my company offshore. This is quite legal.
11. DA broker and I haven't told the taxman about my trading income while I am learning to trade because it is less than the personal allowance (£4615 pa) and thus I owe no tax.
12. DA broker and I haven't told the taxman about my trading income while I am learning to trade because it is less than the personal allowance (£4615 pa) BUT, oops, I forgot to mention that I am holding down another job that uses up my personal allowance. I am evading tax, in other words.
13. To be honest I'm not sure what sort of tax I pay as I let my accountant deal with it. But I do pay some tax on trading profits, that's for sure.
14. None of the above.
I'm sure I've forgotten a few categories - please let me know if your situation isn't included. Part time traders with a regular day job are also more than welcome to contribute.
SB = spread bet firm
DA = direct access
I trade full time through:
1. SB and pay no tax on profits and so far the Revenue hasn't questioned this.
2. SB and pay no tax on profits despite my informing the Revenue in writing that SB is my main source of income, a situation with which they were happy as they regard SB as gambling and collect more than sufficient revenue from the SB firms to worry about the likes of me.
3. SB and used to pay no tax on profits but then the Revenue became suspicious of my income source and decided it would tax me on it at the usual income tax rate despite telling the rest of you that gambling is tax free.
4. SB and used to pay no tax on profits but when I informed the Revenue that SB was my main source of income it decided to tax me on it at the usual income tax rate despite telling the rest of you that gambling is tax free.
5. DA broker and pay no tax on profits because they are less than the annual capital gains allowance (£7900)
6. DA broker and pay no tax on profits because they are less than double the annual capital gains allowance (£15800) and I have an understanding spouse
7. DA broker and pay capital gains tax
8. DA broker and pay income tax as a private individual, with regular expenses (e.g. datafeed, commissions, exchange fee) deducted
9. DA broker and pay some form of income tax (business tax?) from within a limited company that I have set up
10. DA broker and I avoid a large proportion of UK tax by placing my company offshore. This is quite legal.
11. DA broker and I haven't told the taxman about my trading income while I am learning to trade because it is less than the personal allowance (£4615 pa) and thus I owe no tax.
12. DA broker and I haven't told the taxman about my trading income while I am learning to trade because it is less than the personal allowance (£4615 pa) BUT, oops, I forgot to mention that I am holding down another job that uses up my personal allowance. I am evading tax, in other words.
13. To be honest I'm not sure what sort of tax I pay as I let my accountant deal with it. But I do pay some tax on trading profits, that's for sure.
14. None of the above.
I'm sure I've forgotten a few categories - please let me know if your situation isn't included. Part time traders with a regular day job are also more than welcome to contribute.
