Good evening all.
I have been turning a profit mainly through spread betting and some trading and investing in my stocks and shares ISA for about 18 months now.
I am a single male and UK citizen for tax puroposes. I have one other source of income from a rental property which comes no where near to my personal income tax allowance, (the latter is £11,000 this year I believe). I complete a self assessment form every year for the rental income.
I recently had my 59th birthday, with the new pension rules I am not eligible to claim state pension until I am 67. Being aware that I have had a shortfall in the number of years to qualify for a full state pension I decided to get a pensions report from the National Insurance office to see how the land lies. By now you're probably thinking this guy is writng in the wrong forum or he should be getting on to HMRC. However, please bare with me I will get on to how this relates to my trading/investing in a moment and how you may be able to help me.
The report informed me that I needed to make up seven years of NI contributions to qualify for a full state pension of £155 per week. Based on my current record that payment would only be £105. So my options to qualify for a full pension are:
1) Find employent for the next seven years! (Which I financially do not need, not to mention the mental and spiritual disadvantages.... only joking
2) Pay voluntary NI contributions of approximately £4900! (7 x £700)
3) Find self employment for the next seven years and pay national insurance this way. I understand that there is a lower earnings limit below which one is not liable to pay NI. If I recall correctly it is £5,824, however if one does fall in to this catergory there is an option to pay volantary contribution as a self employed person. This currently amounts to £134 per annum, considerably less than the £700 per annum I would need to contribute under my current status.
Being aware of the astuteness of the members of T2W I have a feeling you all know where I'm going with this
Number 3) is my preferred option. What I have in mind is to open and ordinary share dealing account and fund it and register as a self employed trader. I can then just copy the trades I do in my spread betting or ISA account keeping the profits lower than the lower earnings limit for national insurance. This will keep me below the freshold for being assessed for national insurance on profits and below my personal tax allowance including my rental income.
My only concerns are that my understanding of UK taxation is that gains from trading are categorised as income whereas gains from investing are subject to CGT. My trades in the proposed share dealing account would be swing trades therefore, would the profits be subject to CGT and would I still be able to opt in to voluntarily paying national insurance contributions as a self employed person?
If you got this far, thank you very much for your time and a bigger thank you in advance if you can offer some advice. Peace.
I have been turning a profit mainly through spread betting and some trading and investing in my stocks and shares ISA for about 18 months now.
I am a single male and UK citizen for tax puroposes. I have one other source of income from a rental property which comes no where near to my personal income tax allowance, (the latter is £11,000 this year I believe). I complete a self assessment form every year for the rental income.
I recently had my 59th birthday, with the new pension rules I am not eligible to claim state pension until I am 67. Being aware that I have had a shortfall in the number of years to qualify for a full state pension I decided to get a pensions report from the National Insurance office to see how the land lies. By now you're probably thinking this guy is writng in the wrong forum or he should be getting on to HMRC. However, please bare with me I will get on to how this relates to my trading/investing in a moment and how you may be able to help me.
The report informed me that I needed to make up seven years of NI contributions to qualify for a full state pension of £155 per week. Based on my current record that payment would only be £105. So my options to qualify for a full pension are:
1) Find employent for the next seven years! (Which I financially do not need, not to mention the mental and spiritual disadvantages.... only joking
2) Pay voluntary NI contributions of approximately £4900! (7 x £700)
3) Find self employment for the next seven years and pay national insurance this way. I understand that there is a lower earnings limit below which one is not liable to pay NI. If I recall correctly it is £5,824, however if one does fall in to this catergory there is an option to pay volantary contribution as a self employed person. This currently amounts to £134 per annum, considerably less than the £700 per annum I would need to contribute under my current status.
Being aware of the astuteness of the members of T2W I have a feeling you all know where I'm going with this
Number 3) is my preferred option. What I have in mind is to open and ordinary share dealing account and fund it and register as a self employed trader. I can then just copy the trades I do in my spread betting or ISA account keeping the profits lower than the lower earnings limit for national insurance. This will keep me below the freshold for being assessed for national insurance on profits and below my personal tax allowance including my rental income.
My only concerns are that my understanding of UK taxation is that gains from trading are categorised as income whereas gains from investing are subject to CGT. My trades in the proposed share dealing account would be swing trades therefore, would the profits be subject to CGT and would I still be able to opt in to voluntarily paying national insurance contributions as a self employed person?
If you got this far, thank you very much for your time and a bigger thank you in advance if you can offer some advice. Peace.