Taxes: required HMRC forms? and do we need to enter every single trade over the year?

[mickael28]

Hi guys,

I've been trading quite a lot during the previous tax year personally and with the reserves or a company account. Maybe something like 600 transactions per account more or less.

I sent the reports of my activities to my accountant and he just came back surprised saying that she will have to charge more to prepare personal tax return and Company Year End accounts as there's a lot of information for him to process.

Do you know which forms he'll have to complete for the personal tax return and/or company year end accounts regarding stock trading?

And will he have to enter every single transaction one by one? I wouldn't think that's required by HMRC and they'll just be interested in the total gain/loss for the year, but I've never done it before, so not sure why it's going to be more problematic for him now.

 

[aag100]

are you trying to get a refund on your losses?

 

[mickael28]

No, I'm trying to see which forms I'll need to complete (for the personal tax return and the company annual account) and how the information is entered there, as it seems the accountant wants to charge around £1400 extra for completing those 2 returns...

 

[donaldduke]

No, I'm trying to see which forms I'll need to complete (for the personal tax return and the company annual account) and how the information is entered there, as it seems the accountant wants to charge around £1400 extra for completing those 2 returns...

For my company accounts:
I just tell my accountant this how much net profit from trading i made for the year (excluding commissions and fees and interest).
How much commissions i paid,
How much i paid in data fees (and other fees) to my broker.
How much interest i paid out from the brokerage account (if any).
How much interest i received in the brokerage account (if any).
Any FX profit and loss on non GBP balances.


I do my own Personal tax returns online, i don't use an accountant, i just enter my net Capital Gains in one of the boxes + maybe i attach a pdf document showing my overall calculation.

But your accountant will want to do it all properly, they will want to consider such things as the 'bread and breakfasting' CGT allowance rules.

 

[f2calv]

Everything @donaldduke said +1

Company accounts, just a summary of your GrossProfit-Losses-Expenses=NetProfit and you're good to go. Most brokers will be able to forward you your PnL statement for the company tax year dates which will have the majority of the key figures on, just add to that an external expenses.

Personal accounts do online - IMO only 0.1%* of the most complicated tax affairs really *need* an accountant to get involved - it's so easy, a couple of hours and job done and you've saved yourself more than a few hundred quid most likely.

*99% of statistics are fabricated, just like this one.

 

[mickael28]

Any FX profit and loss on non GBP balances.

...

But your accountant will want to do it all properly, they will want to consider such things as the 'bread and breakfasting' CGT allowance rules.

Thanks guys, really helpful posts! I didn't know we could just put the main figures in some boxes without detailing every single transaction. I think you might be right there and maybe if they do that, the tax return could have some benefit... but I doubt is going to be any close the expense that it'd require. I'll try to do it that way.

Regarding the "FX profit/loss on non GBP balances", do you know how that balance would be calculated? ie, I've got a list of closed transactions in USD when my account is in GBP. My broker details the realized profit/loss for those positions and then they detail the FX result (which in this case was a loss of around -£5000)

Then I've got some opened positions in USD still. Should that -£5000 in FX conversion be taken into account? or that's not relevant for the tax return if I still have opened positions (as I guess part of that loss would be offset by the US shares)? Although if those positions are still opened, then not sure if they'll affect much last year tax return.