Self assessment & Trading

[TeaTime]

Id managed to keep my profits below the personal allowance figure but realise I may have gone over so thought Id checkout
self assessment as I trade the US market and my account is in USD this is proving to be a nightmare , or maybe Im just thick.. hence Im unable to complete the form
I did contact a tax advisor for help but they were not keen at all, almost impossible to speak to HMRC due to covid
I wonder if anyone out there can offer some advice so I can find away forward
Cheers, john

 

[Trader333]

What instrument(s) are you trading and is your account held in the UK ?

 

[TeaTime]

What instrument(s) are you trading and is your account held in the UK ?

US stocks, account with IB UK

 

[MasterOfCoin]

Id managed to keep my profits below the personal allowance figure but realise I may have gone over so thought Id checkout
self assessment as I trade the US market and my account is in USD this is proving to be a nightmare , or maybe Im just thick.. hence Im unable to complete the form
I did contact a tax advisor for help but they were not keen at all, almost impossible to speak to HMRC due to covid
I wonder if anyone out there can offer some advice so I can find away forward
Cheers, john

You're right, it's a living nightmare.

Which is why this question comes up so frequently on the forums.

Either keep your profits below the threshold or trade in an ISA wrapper for sweeter dreams.

Otherwise, you are in for a shedload of bureaucracy that will never end !

You'll end up spending more time dealing with the delightful HMRC than trading.

Only the bravest go there.

 

[TeaTime]

You're right, it's a living nightmare.

Either keep your profits below the threshold or trade in an ISA wrapper for sweeter dreams.

Otherwise, you are in for a shedload of bureaucracy that will never end !

You'll end up spending more time dealing with the delightful HMRC than trading.

Only the bravest go there.

Thanks Master, youre confirming my inner thoughts...I don't want to do battle with HMRC, Id sooner take a loss and not go there...appreciate your view though...

 

[MasterOfCoin]

managed to keep my profits below the personal allowance figure but realise I may have gone over so

My initial thought on this is to ask whether you are aware that there are presently separate allowances for capital gains and dividends in the UK ??

It may be that if you divide your profits accordingly, you will still be within the allowances.

🤔

 

[Trader333]

The key question is whether you are liable for capital gains tax or taxable on profits above the tax threshold or maybe even both. How long are you holding the positions for and (as MOC has indicated), whether you receive income from dividends ?

 

[FXX]

My initial thought on this is to ask whether you are aware that there are presently separate allowances for capital gains and dividends in the UK ??

It may be that if you divide your profits accordingly, you will still be within the allowances.

🤔

you can only take dividends if its through a company and that means the trading has to go through the company, paying corporation tax, vat, and all the good stuff that comes with it.

 

[1nvest]

s I trade the US market and my account is in USD this is proving to be a nightmare , or maybe Im just thick.. hence Im unable to complete the form

what about it precisely are you unable to complete that a tax accountant couldn't help with?

 

[tomorton]

Worth mentioning that trading in the UK via spreadbetting is exempt from taxation. Access is available to trade the bigger US stocks.

 

[TeaTime]

After spending some hours going over the figures, I realise Im just under the radar so to speak
thank you to all who offered advice...much appreciated
lesson learned: keep your eye on the ball constantly !

 

[MasterOfCoin]

After spending some hours going over the figures, I realise Im just under the radar so to speak
thank you to all who offered advice...much appreciated
lesson learned: keep your eye on the ball constantly !

Congratulations 🍾

I'm sure we're all happy to help where we can.

Well done for slogging through the figures.