What level of detail do people submit to tax office? One trip to an accountant revealed that they average all the transactions. Massive loss of detail there. Also my broker account is a dollar account. My broker report does not include the British pound exchange rate at the time the trade is complete. Advice anyone?
Well it really depends on the level of trading you do. In the UK spread betting accounts are tax free. Unless it becomes your main source of income then it falls under the normal brackets anything up to 11K a year is tax free, up to 20K is 20% etc etc
So unless youre making more than 11k a year and its not your main source of income i wouldnt even go to an accountant its a waste of money
Thanks - that helps with one aspect.
Are there any sites with historical exchange rates based on date AND time? Most sites just of the end of the day exchange rate!
i think youll struggle to find time aswell as going back a long way.
Thanks for that. I have a method but not a source.
OK. I’m now playing with MT4 and MT5 to figure this out. Thanks all.
Hi, for accounting and taxation purposes end of day rates are used in calculation. You can find that on many sites as in taxation and ifrs take closing rate and average rates for calculation
Thanks. Im not an accountant so thank you for clarifying that part of the process. Averaging is completely wrong but it can work in your favour.
So next point to clarify : do you get taxed on withdrawn monies AND any increase in the Capital at the broker (who could reside in another country). This question applies to UK but I guess the same scenario applies in other countries.
Well yes you are right rate at specific date is recommended but due to large number of transactions average is also acceptable.
For your UK taxation, yes trading income is taxable as per HMRC. If you need detailed guidance on UK taxation I have Consultancy firm where we do provide consultancy services for UK based individuals.
I myself head accounts and audit department but i can refer your question and concern to our tax department who can better answer your all queries and help you on that.
Thanks so much for your reply. Apologies for being late in replying. Please by all means send me more info.
Yes, I am not an accountant either but when things are clear everything is handled better