Hi all, new here, and have been trading now since October.
I am currently trading the futures market on indices and commodities. Although I originally only invested a small amount, to test my strategy, I’m pleased to say that my strategy, learned from a mentor, seems to be working, although still working on physcology side of things.
My question is, as the UK tax year is ending, how do I go about the tax side of things. I currently run a business in the UK and my accountant has made me aware that I may need to declare any additional earnings.
My initial investment was $1897.1 and my current statement balance at the end of February is $3223.45, which is currently due to increase on the March statement.
March has been a good month with at least anothe $2000 profit so far.
I have not yet withdrawn this from my tradestation account, do I need to declare it even it has not been withdrawn?
Additionally can anyone reccomend a futures trading broker that is compatible with tradingview which is UK based, which may make transactions a little easier for the future.
Congratulations on your trading success! Regarding your tax question, it’s essential to consult with a tax professional or accountant familiar with trading income in the UK. Generally, any profits made from trading, whether withdrawn or not, may need to be declared for tax purposes. Your accountant can guide you on how to accurately report your trading gains and any tax obligations you may have.
As for futures trading brokers compatible with TradingView in the UK, it’s best to research and compare different options based on your specific needs, such as trading platforms, fees, and customer support. Some popular brokers to consider include IG, Interactive Brokers, and CMC Markets, but be sure to verify their compatibility with TradingView and their suitability for your trading style.
The only trading profits which do not need to be declared in the UK are those from spreadbetting. SB profits are tax-exempt, you won’t even have to submit details annually. This includes the situation where your SB profits are your sole income.
I think that you don’t, because it isn’t “earnings” until it’s been paid to you (or until you’ve “paid it to yourself”).
But whatever you do, don’t take my word for it because I’m not a qualified or licensed accountant, and don’t take the word of any other random stranger in a forum, either!!
Your post makes it clear that you already have an accountant, and that’s the person to ask. Someone qualified, licensed, regulated and insured who can be responsible for the professional advice he gives you.
I appreciate that you thought there might be people here who are familiar with your specific issue and that it might be helpful to know their opinions (that actually isn’t the case because almost nobody here trades futures) but that still doesn’t make it a valid or sensible way to be advised. Sorry!
Good luck to you.
(By the way, what @tommor says above is totally right, and it does include the situation where your SB profits are your sole income, though there are many people posting in forums who will tell you the opposite. They are all mistaken, and their information is out of date - at best - and there are a lot of them. But what this all illustrates, more than anything else, is the importance of getting proper, professional advice from people who are qualified and licensed and registered to give it). Sorry not to be more helpful.
Be particularly careful taking “advice” here, because many of the posts here contain text artificially generated by software for SEO purposes, and unless you’re experienced at running a forum, it’s sometimes difficult to distinguish between automated and human content. Alan Turing, alas, is no longer with us.
Thank you all, for the welcomed advice.
I have since been in touch with my accountant who states I need.
We would need the following information from you for each disposal;
• Name of the company
• What country the shares are registered (eg UK, US, France etc)
• Whether the shares were listed or unlisted
• Disposal (sale) date
• Proceeds (how much you received)
• Any related costs related to the Disposal
• Acquisition (purchase) date
• Any associated costs related to the Acquisition
• Any foreign tax paid on the disposal
Not something I considered when venturing down this trading journey, however Platinum this month is hitting the strategies on point, so it’s all worth it in the end. Now I just need to figure out how to get all this information.
Does anyone use tradestation? I wonder I’m able to find out if ‘Any foreign tax has been paid on the disposal’.
Very similar to what I used to provde to my accuntant when I was dealing in actual shares. I used to get a completion note or suchlike from the broker automatically by post once each parcel of shares was disposed of. I passed the whole lot to the accountant at year’s end and they did the rest: they never bothered me for any further information.
You could always run the accountant’s request past your broker, see if they have any comments.
Hi, congrats on your success! You said that your accountant asks for:
But you said in your OP that:
So you are not trading in actual specific shares or commodities. I am not UK-based so I don’t know the requirement there, but it is worth checking that your accountant has understood what you are actually trading.
Thank you for the comments. I have since asked the accountant to clarify. specifically I am have traded over the last few months, Micro Dow Jones, Micro Crude Oil, Micro S&P, Micro Gold, Micro NASDAQ, Platinum. Now seems to be solely on Platinum and a little Oil.
Not unless you are actually taking delivery of the commodities on expiry of the futures, which i assume you are not!
What you are actually trading are financial derivitives based on the future price of the underlying commodity, not the commodity itself.
So i would imagine it is financial income qualifying for capital gains tax. There are probably costs you can offset such as use of home as office etc, but that is your accountant’s territory
You said that your accountant asks for: