US broker, UK taxes, registering as a self-employed trader,

Pirilion

Junior member
Messages
35
Likes
0
Hello!

I live in the UK, am an indian national, was a student, currently unemployed, NOT claiming jobseekers allowance and living with parents. I have about $2.5k which i won at poker, and have also been successfully trading simulations. But i want to try real trading, which is obviously an entirely different ballgame.

I want to trade US stocks exclusively.

i would like to open an account with one of the following discount brokers -
just2trade
sogotrade
sogoelite - cheapest, best platform, downloadable, my fav
zecco

They are all based in the US and very cheap (a couple of $ roundtrip), but i want to pay my tax in the UK.
Someone advised me that filling out a "W8-BEN" form will exempt me from paying taxes to US and i will be able to pay them here in the UK.
Can anyone confirm that?
Also, will the brokerage hold say 30% for tax purposes even if i want to pay UK taxes or will I be responsible for paying my own taxes?


Also, once i start, I will have some time (think around a few months) before applying as a self-employed trader and pay taxes.
Am I on the right track here?

I am also looking into offshore brokers which though are more expensive, offer international markets, multiple currency denominations, etc. UK tax again.

BTW - if this works out i will be investing more than 2.5k. Will be investing my parents money in ISAa, other tax-efficient intruments, etc as well as equities. And more forex.

Regards,
 
I want to pay my tax in the UK.

You don't get a choice in that.

will the brokerage hold say 30% for tax purposes

Probably on dividends, not as far as I know on capital gains.

will I be responsible for paying my own taxes?

Absolutely !

I have about $2.5k

You'll have to be a very good trader to make enough to have a tax liability.

I would think it's only of benefit to register as self employed if you have significant costs (data fees, charting subscriptions or similar) you want to offset.
 
You don't get a choice in that.

You got me there.

You'll have to be a very good trader to make enough to have a tax liability.

I would think it's only of benefit to register as self employed if you have significant costs (data fees, charting subscriptions or similar) you want to offset.

Agreed.

I think its benecial to register as a self-employed because i could put that on my CV or get a job daytrading later on, say 2-3 years later. Thinking ahead but there's no disadvantage being registered as a self-employed instead of say, unemployed.

thx
 
once you register yourself self employed you will have to do self assesment returns for the lest of your UK life. i have a friend that went self employed for 1 year and 10 years later he is still filling in this assesment by request of the taxman even though he has informed them every year since that he is no longer self employed he continues to receive these requests every year... i guess its just another example of how useless our inhouse government is managed...
 
Pirilion,
If someday you will be a trader good enough for employment - you will be better off without that! Still, the proof is in the pudding, it doen`t matter if your statements show "Selfemployed Trader" or just your name.

But declaring yourself a trader by profession (when opening a broker account) might change your datafeed bill - to the upside.

Regards

Hittfeld
 
"But declaring yourself a trader by profession (when opening a broker account) might change your datafeed bill - to the upside."

Priceless advice.

"once you register yourself self employed you will have to do self assesment returns for the lest of your UK life. i have a friend that went self employed for 1 year and 10 years later he is still filling in this assesment by request of the taxman even though he has informed them every year since that he is no longer self employed he continues to receive these requests every year... i guess its just another example of how useless our inhouse government is managed..."

Wow, didnt know that. Seriously? Wow.
 
Top