Cash? I assume you mean you pay by bank TT/ debit card whatever? Even so, I can't understand why. I remortgaged 15 months ago- increasing the size of my mortage to buy another property, I have at least 4 credit cards sucsessfully applied for , and 1 car loan - all this year, and I haven't been an employee for over 2 years!Pringle said:I
The only problem you have is trying to get proof of earnings for mortgage purposes etc so I have to pay cash when I change cars and such - but hell its a small price to pay.
Good luck - its well worth it if you can do it.
CatTrader - I suppose they could tell you that, but anyone further up the daisy chain in the HMRC isn't going to pursue any recovery against you. It's simply gambling. The amount does (should?) not make a difference. SB gains are not chargable to IT or CGT. If I take £500 a week out of the markets through spreadbetting, and I do this for a year, and make £20k, that is not income or capital gains - its gambling. I would be technically unemployed (although not entitled to benefits because I would not be actively seeking work, and would have assets > £5k).Just one point. If you made your life out of spreadbetting, the inland revenue can tell you that if this is your main income you have to trade thru a business and therefore you will be liable to pay taxes. But obviously, ask to an expert. It's always to be in the system and to operate thru a company. You will do your NI contributions, your bank will give you loans, etc.
Hi Pringle. Hope it's still going ok. I would like to have, also, a letter from the IR stating my earnings are free from Income Tax. Was this easy to do ? Regarding my earnings - I have spoken to my accountant ( I had a business before I did this full-time) and he thinks the best way round is to produce a profit/loss account based on my bank account and statements from the 3 spreadbet companies I use. They will show how much I've earnt even though should not (?) be taxed. Banks and building societies should accept this, together with a covering letter from said bean-counter.I have a letter from IR stating that my earnings free from CG and Income Tax and at the moment pay voluntary NI payments. I consider myself a Professional Trader and self employed - just my earnings are not taxable (not my fault, just the way it is)
The only problem you have is trying to get proof of earnings for mortgage purposes.
Absolutely! I would think so in the vast majority of cases." BIM22017: The fact that a taxpayer has a system by which they place their bets, or that they are sufficiently successful to earn a living by gambling does not make their activities a trade"
Found this (thanks LL) on the Inland Revenue site - seems fairly conclusive ??
That seems contrary to my post (above) extracted from the IR website though. They say that if I am lucky enough to have a system that earns me a sum of money, it is not carrying on a trade, so therefore not liable to tax.This is an important point of technical law that should be noted. It is true gambling as such is tax free. However, if you are perceived to be a Professional Gambler, you are liable to pay income tax on the net result of your earnings. This is true whether you play poker, bet on horses or on the FTSE 100. The grey area, as always, is how is that distinction drawn by the inland revenue.
An individual that profits from speculation is not deemed a Professional Gambler because of his percentage wins or financial gains. A Professional is an individual who is gainfully employed in the industry and uses this knowledge to make profits. A seller of systems and or courses that enable others to profit from speculation who speculates in order to prove that these systems or courses work is also deemed to be a Professional Gambler.This is an important point of technical law that should be noted. It is true gambling as such is tax free. However, if you are perceived to be a Professional Gambler, you are liable to pay income tax on the net result of your earnings. This is true whether you play poker, bet on horses or on the FTSE 100. The grey area, as always, is how is that distinction drawn by the inland revenue.
As has been pointed out before, if the IR taxed winnings, the 90% of people who lose would be able to claim their losses against their tax bill........No matter how profitable an individual gambler may be he/she cannot be taxed by the Inland Revenue regardless. There have not been any test cases in the courts to show otherwise and until the Revenue bring such a case (very unlikely) and win, it is pointless worrying about it. UK residents do not worry about the next volcanic eruption.
As has been pointed out before, if the IR taxed winnings, the 90% of people who lose would be able to claim their losses against their tax bill........