SpielByWeb

[AE12Pr]

Okay, please bear with me here, as I'm not very good at writing forum posts for some reason.

I run a small limited company (welding and manufacturing) and earn just enough to live on and a little for a rainy day. For the past 4 years, I have been day trading profitably, and this has supplemented my income and declared any income from day trading through self-assessment. I don't know if it matters, but I trade currencies, cryptocurrencies, and sometimes stocks and shares. I don't make a lot of money from it, but it adds to my income.

That's where things got complicated for me, today I was having a discussion with someone on the Internet who suggested that I also declare the turnover of my trades, and not just any income that I get from trading. Today I went through all my trades over the past 12 months and the turnover was just over £ 450,000 before trading fees. One thing that was raised in the conversation was that if I had a tax investigation from HMRC, there would be a lot of questions from akward as to where this extra income comes from, and there would be possible consequences as I never declared the turnover from the trade or the cost/details of each transaction.

Can anyone shed any light on whether turnover should also be declared?

What about the value of each transaction and how exactly it should be declared?

If I have to declare the value of each transaction, is there any accounting software that you would recommend for this?

I didn't really realize that the total turnover was as high as it was (this is something I've never considered at any point in the past), and it's slightly more than the VAT threshold if I were registered for VAT for day trading, although the current profit would not cover VAT on the amount of turnover, since the profit margin is not as high.

Will there be any benefit from trading as my limited company rather than as an individual trader? My limited liability company is registered for VAT (although below the threshold), and how this will affect the company for tax purposes. Admittedly, having an additional $ 450,000 on the companies ' turnover would look impressive, but it's almost 10 times the current turnover, and I know that this is likely to have tax implications.

If there is any advice that could be offered, it would be greatly appreciated. Now I realize that this is something I should have consulted about long before.

[JanHam]

The profit potential of day trading is perhaps one of the most debated and misunderstood topics on Wall Street. Internet day trading scams have lured amateurs by promising enormous returns in a short period. Unfortunately, the idea that this kind of trading is some kind of "get-rich-quick" scheme persists. Some people day trade without sufficient knowledge of contract specifications. But there are day traders who make a successful living despite—or perhaps because of—the risks.
Many professional money managers and financial advisors shy away from day trading. They argue that, in most cases, the reward does not justify the risk. Conversely, those who do day trade insist there is profit to be made. Day trading profitably is possible, but the success rate is inherently lower. This is because of the complexity and necessary risk of day trading in conjunction with the related scams. Moreover, economists and financial practitioners alike argue that over long time periods, active trading strategies tend to underperform a more basic passive index strategy, especially after fees and taxes are taken into account.