Spread Betting Self Employed

Spread Betting Self Employed
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You might want to keep reasonable records of self-employed income and your spread betting activities (statements, bank transfers to and from your spread betting company...etc) so that should your luxury lifestyle exceed your self employed earnings you could show reasonable information on how it was achieved from outside the tax system. Q.
Spread bettors are typically men aged 35 to 55 who work in financial circles, often self-employed . The spread betting industry is now a multi-million pound industry and there are more than 93,000 active spread traders* in the UK alone and firms multiplying simultaneously.
In the UK, HM Customs and Excise recognises financial spread betting transactions as bets, rather than investments. So if you are a UK taxpayer, capital gains tax and income tax don't apply. I've made £10k a year on average since 2002 on sports and financial betting . No tax is payable as long as it is not your sole or main income.
If you have no accounts - there is no record of what you earn, also betting isnt seen as a great way to make income in the eyes of the lender. That being said you sound like you have made it work for a long time. I do know that there are some lenders who are happy to see 6 months worth of bank statements as proof income in the absence of accounts.
If a person's sole income is from financial spread betting are they exempt from paying income tax and CGT on any profits Ask an Expert Tax Questions UK Tax Questions 1) Do I have to hand in my P45 to the job centre and register as unemployed, 2) Do I register as self employed with the IR and what heading would spread betting fall under. Gambling
Spread bettors are typically men aged 35 to 55 who work in financial circles, often self-employed . Source: ... Many of the UK spread-betting firms are laying off their own collective liabilities (continually recalculated by their in-house software) and making their profit mostly from the spread . I don't claim that they all do that, all the time ...
These bettors would need to file as a business with a Schedule C form. Filing as a business allows deducting expenses, but also subjects them to self -employment tax and possibly quarterly estimated payments. It's as if that bettor runs his or her business and files accordingly. The new tax laws have had some changes on this aspect, however.
The thrills you experience as a self-employed entrepreneur, such as the freedom to make your own hours, set your own rates and to be directly rewarded for ... Best Spread Betting Platforms UK ...
Jul 19, 2022 It allows you to earn up to £1000 of extra income tax-free. Anything that you earn in profits over £1000 will be taxed at the standard 2022/23 Income Tax rates. Income Tax in the 2022/23 tax year Trading is my main source of income As a full time self-employed investor, you'll be taxed on all of your profits over the tax-free Personal Allowance.
5 days ago Self -employment among black women rose to 5.2% up from 4.1% pre-pandemic, while the amount of self-employed Hispanic women grew from 6.1% to 7.4%, the study showed. Self-employed white women grew...
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Need some help with regards to my chances of getting a mortgage. The problem is for the last 4 years I have been making a living from spread betting on financial markets (Forex, shares commodities) from home. That had always been my dream, but since I started I have met a girl, settled down and now we wan't to buy a house together.
Is this likely to be a major problem for me when trying to get a mortgage? I have a month by month record of what I have made exactly each month since I started, but as I'm technically gambling for a living none of this is very official, its literally just a statement breakdown provided by my broker. I'm not registered as self employed or anything like that either.
Any ideas?

I'd be surprised if a lender viewed your income as acceptable.
As it isn't taxable, there is going to be no verifiable evidence of your income on which they can base affordability.
I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.

There's no guarantee of future earnings. Mortgages are repaid over 25 year terms. So betting offers a lender no assurances. However successful the past.
I'd be surprised if a lender viewed your income as acceptable.
As it isn't taxable, there is going to be no verifiable evidence of your income on which they can base affordability.

Sorry, also forgot to mention it will be a joint mortgage with my girlfriend, who works full time, if that makes a difference?

I have no idea. Your partner's income will be taken into account if she can evidence it.
As I said, lenders base affordability on verifiable evidence of income, such as accounts, SA302s, payslips and P60s.
Perhaps your own clearing bank may be an option?
You could have accounts prepared by an Accountant. There would be no allowable expenses, or taxation, but he could certify your earnings, based on what you present as your evidence?
No idea if that would work, clutching at straws a little here...
I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.

I wouldnt hold my breath with this. If you have no accounts - there is no record of what you earn, also betting isnt seen as a great way to make income in the eyes of the lender. That being said you sound like you have made it work for a long time.
I do know that there are some lenders who are happy to see 6 months worth of bank statements as proof income in the absence of accounts. The rate wont be fantastic but it will get you on the property ladder - im not sure if they would accept gambling/spread betting though.
I think with this you will need to speak to a broker as you wont find a high street lender who will even contemplate it.

4 March 2013 at 3:21PM
edited 4 March 2013 at 3:25PM

4 March 2013 at 3:21PM
edited 4 March 2013 at 3:25PM

Yes, i'm worried about the stigma that surrounds "spread betting" even though its the same as trading DMA.
I guess I need to get technically employed via a hedge fund or something where I can still trade my own money. Or set up my own company and trade through that.

I wouldnt give up just yet if you really want to buy. I would speak to a broker and see if they can help - it depends how much you want to buy though, if your not that fussed then it may not matter too much.

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Spread betting and conflicts of interest vs CFD's

Post # 1 Quote First Post :

Jan 30, 2015 4:37pm

Jan 30, 2015 4:37pm

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Joined Jan 2015

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Status: Member

| 32 Posts

I know similar threads have popped up but wanted to get peoples opinions on this. I'm in the UK and I'm currently deciding between a variety of brokers however my first decision is to decide if I'm looking for a spread betting account or a CFD account.
I've mainly been looking at spread betting accounts because I could potentially save 18 or 28% on capital gains however the potential conflict of interest concerns me. From what I understand when it comes to spread betting either you or the broker sustains the loss when you make a bet. Considering the broker controls the market data you place the bet on this leads me to think it would be a very bad idea to go for a spread betting account as they will do all there best to keep you from winning. Spread betting accounts also typically offer crazy bonuses like Intertrader (10k), ETX (15k) depending on your deposit. These sort of bonuses on offer only emphasize to me that they are counting on you to loose.
In contrast we have CFD's, now providing the broker is ECN and doesn't hedge against your trade the broker is there to only fulfil your trade and does business from commissions or spreads . However with CFD's it is subject to capital gains tax.
What are peoples thoughts on this?

Post # 2 Quote

Jan 31, 2015 7:03am

Jan 31, 2015 7:03am

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Joined Jan 2010

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Status: Member

| 60 Posts
I know similar threads have popped up but wanted to get peoples opinions on this. I'm in the UK and I'm currently deciding between a variety of brokers however my first decision is to decide if I'm looking for a spread betting account or a CFD account. I've mainly been looking at spread betting accounts because I could potentially save 18 or 28% on capital gains however the potential conflict of interest concerns me. From what I understand when it comes to spread betting either you or the broker sustains the loss when you make a bet. Considering...
Post # 3 Quote

Jan 31, 2015 11:28am

Jan 31, 2015 11:28am

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Joined Jan 2015

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Status: Member

| 32 Posts

Thanks blackbird. I'm still on the fence with this one. Intertrader doesn't provide requotes and they are an ECN broker so this would be a small assurance for me I guess.

Post # 4 Quote

Edited at 12:26pm

Jan 31, 2015 11:46am

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Edited
at 12:26pm

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Joined Jan 2010

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Status: Member

| 60 Posts
Thanks blackbird. I'm still on the fence with this one. Intertrader doesn't provide requotes and they are an ECN broker so this would be a small assurance for me I guess.
Post # 5 Quote

Jan 31, 2015 12:01pm

Jan 31, 2015 12:01pm

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Commercial Member

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Joined Feb 2012

| 3,770 Posts

As long as they are regulated by the FCA then your money is as safe as it is in a high street bank. As always, never fund your account with all your money (most trading approaches don't need ALL you money to be avaialable at all time, thats what leverage is for) draw your profits regularly, keep good records of your trading.
I have taken 9000 trades with my spread bet broker and have never had any reason to complain. Weighed against the tax advantages it's a no brainer.

Post # 6 Quote

Jan 31, 2015 12:29pm

Jan 31, 2015 12:29pm

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Joined Jan 2015

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Status: Member

| 32 Posts
{quote} If by ECN you mean the same as Non Dealing Desk broker, FXCM claims to be a NDD Spread Betting Broker and they trade microlots and minilots on an MT4 and a Desktop. FXCM was my Spread betting broker for years until after the swiss incident where they reduced their leverage from 1:200 to 1:50. I did not have a position on the USD/CHF btw. When I checked on Friday the leverage changed to 1:100 so I may trade occasionally with them in addition to my Forex Broker FxPro. I know that lots of traders don't trust FXCM anymore but as long as I keep...
Post # 7 Quote

Jan 31, 2015 1:34pm

Jan 31, 2015 1:34pm

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Commercial Member

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Joined Feb 2012

| 3,770 Posts
{quote} If I was going to trade CFD's and only trade forex I would probably go for FXPro but they don't provide market access to indicies and good list of commodities which holds me back as I like to trade where the opportunities are. Regarding FXCM I woulden't go for them considering how they handled the SNB news. @60minuteman that's my main thoughts too. The tax advantage is too great to pass up. What broker are you using?
Post # 8 Quote

Mar 15, 2015 9:49am

Mar 15, 2015 9:49am

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Joined Apr 2014

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Status: Member

| 57 Posts

It doesn't really matter if you use spread betting or CFD account (well, with CFDs you have to pay CGT), but overall they work in a similar way and in the uk most of the CFD brokers are market makers so it's up to them to create adequate liquidity.
Yes, it's true that most of the time CFD and spread betting brokers will be against you but once they notice that you know what you're doing then they start hedging your bets.
You also have to remember that spread betting industry is very competitive so brokers show more respect and care when it comes to seasoned traders (unlike as it was about 5-7 years ago). If you're a successful trader they will be glad to keep you on the books and hedge your positions while making money off you on the spread and other charges (such as overnight charges).
You have to remember that when it comes to CFD, you have to pay CGT, you deal in the currency of the underlying market and there're a few other things to remember (Source: http://www.independentinvestor.com/s...etting-vs-cfds ).

Post # 9 Quote

Mar 15, 2015 10:08am

Mar 15, 2015 10:08am

Joined Apr 2013

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Status: Member

| 10,097 Posts

I spread bet daily there's no point in cfd's unless you like filling tax returns in (assuming profitable). Been with same mm around 10 years no problems. Most retailers lose because they put stops too close to entry or at obvious s/r levels. Keep account under 50k with UK registered 'broker' and use manual stops. Good luck.

Post # 10 Quote

Mar 15, 2015 10:22am

Mar 15, 2015 10:22am

Joined Jan 2014

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Status: Less is more ...

| 8,896 Posts
I spread bet daily there's no point in cfd's unless you like filling tax returns in (assuming profitable). Been with same mm around 10 years no problems. Most retailers lose because they put stops too close to entry or at obvious s/r levels. Keep account under 50k with UK registered 'broker' and use manual stops. Good luck.
Post # 11 Quote

Mar 15, 2015 10:27am

Mar 15, 2015 10:27am

Joined Apr 2013

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Status: Member

| 10,097 Posts
{quote} Hi Claudia, I think trading with manual stops does not work for everyone. For me it does not. You come to the point where you say: Hm, time to close .. oh maybe it turns ... oh no I should close ... oh it turns again ... oh now it is expensive, I better close ... oooh it turns lol ... my solution was deleveraging and using stops that I am more comfortable with that get me out when the market proves me wrong.
Post # 12 Quote

Mar 15, 2015 10:27am

Mar 15, 2015 10:27am

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Joined Apr 2014

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Status: Member

| 57 Posts
I spread bet daily there's no point in cfd's unless you like filling tax returns in (assuming profitable). Been with same mm around 10 years no problems. Most retailers lose because they put stops too close to entry or at obvious s/r levels. Keep account under 50k with UK registered 'broker' and use manual stops. Good luck.
Post # 13 Quote

Mar 15, 2015 10:30am

Mar 15, 2015 10:30am

Joined Apr 2013

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Status: Member

| 10,097 Posts
{quote}
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