(UK) Getting into trading - how to tax income?

[Joshevans--]

Only person is really to speak to an accountant as is a very grey area and hard to find exact information on it

See this asked a lot, and is a valid question, but when it comes down to it everyones tax situation will vary slightly and the only thing you can do to be 100% sure is speak to an account about your own situation

Everybody has their own circumstances, so it depends on the person. You are best speaking to an accountant.

 

[Forex bison]

See this asked a lot, and is a valid question, but when it comes down to it everyones tax situation will vary slightly and the only thing you can do to be 100% sure is speak to an account about your own situation

Yea I think it falls under capital gains

 

[Kirstysingy]

Yo

I've been interested in trading for a while but could never figure out how to get into it (until finding this forum! ). I want to do it alongside my current part time job which is barely supporting me. I was wondering how money from trading is taxed, as it will be different amounts per month? How would you go about paying tax? I've seen some insane success stories and putting their income through this a wage and tax tool shows they would be paying a huge amount of tax - you just wouldn't get away with not declaring it. I would expect to be making small amounts of profit, and likely lots of losses at the start - is there any way to mitigate the damages of the losses? Many thanks in advance

ull need to find an accountant who’s experienced in it as will get varying answers

 

[sebking1986]

From what I understand the subject is very nuanced so I would consult a forex and crypto trading specialist tax accountant if you intend to pay any tax. It appears to depend on how much you make, if it is a sole source of income etc. A minefield to approach without guidance.

 

[FriendlyFX]

It falls under Capital gains tax as far as I know but my advice is seek financial advice could vary wildly depending on your circumstances

 

[ishan agarwal]

For taxable trading activities, Self-Assessment, Income tax, National Insurance contributions, Allowable expenses, and Capital gains tax (CGT), Seek professional advice. When it comes to trading and taxes in the UK, it's important to understand the rules and regulations to ensure compliance. These are the key points to consider.

 

[kabir anand]

If you're based in the UK and earning income from trading, it's important to understand your tax obligations. The specific rules and regulations can vary depending on your individual circumstances, such as whether you're trading as a sole trader or a limited company. Generally speaking, any profits made from trading will be subject to income tax, and you may also need to pay national insurance contributions. It's a good idea to consult with a tax professional or accountant to ensure you're meeting all of your obligations and taking advantage of any tax breaks or deductions that may be available to you.