Tax and spreadbetting

[adrianallen99]

Hi,

Im starting to get some issues with my bank account and money made from spreadbetting. Im not making loads, but they are starting to notice a bit of an income occuring with and im finding payments taking longer as they look into where they are coming from.

Anyone know the stance on this with inland revenue. If spreadbetting/fixed odds profits are you main source of income, do I have to pay tax on it like my bank tells me.

Basically if I start to bring in more than a certain amount they tell me I will be using my bank account incorrectly and they will start refusing payments???? To put it another way, if I start making decent money they say I will have to open a business account.

 

[TheBramble]

Adrian, this has been covered in some depth in other threads.

Consensus was that profits from SB and fixed-odds are not currently taxable under UK legislation by the Revenue. But...as with all things IR related, it could be a grey area depending upon your specific personal circumstances.

If you have another income (i.e. a day-job) then I think it extremely unlikely you will be held to pay tax on profits. If there were a case for this, then the IR would have to allow losses to be similarly deducted from payments from the 97% who lose to SBs. As the SBs pay somewhat less to the Revenue than the lowest personal tax band, I don't think that's an attractive position for the IR to be considering.

Even if you don't have a day-job and you are a full-time trader I believe the gods are still with you - although the boys from the revenue might try it on a bit.

I'm much more surprised your bank is sticking its hooter into your business. I can imagine they would like the bigger charges that a business account would generate, but it's really not up to them to make that call. The only reason a bank would be looking at your account is if large quantities (I don't know what the current alert levels are for money laundering) of cash were being paid into your account.

 

[sidinuk]

Change banks, they are trying it on. There is no way that you want a business account as you'll need to pay for each transaction. Spreadbetting is gambling not a business (in the eyes of the law, that is!)

 

[oatman]

Sounds like they're too nosey. What bank is it, by the way?
I'd certainly change.

 

[Trader333]

Abbey National are very good for business banking, pretty much no charges if you meet the correct criteria.


Paul

 

[adrianallen99]

Hbos

 

[Racer]

Sounds a bit odd to me, my bank wanted to sell me things!

 

[adrianallen99]

I found it odd, but it wasnt just one person. I have to admit I think they found it difficult to understand the concept of spreadbetting.

 

[CityTrader]

Why not leave the money on deposit with your SB firm of choice, then transfer one lump sump whenever you need it? OR change branches to a big city bank ( ok maybe not in Orkney- but anywhere!)

 

[zarif]

From what i Know "you dont need a business account -just be able to account for your business" Tell your bank that and if they are adamant ask the ombudsman.