Taxation

[janne]

Does anyone here trade as One Man Business? How does taxation works in that case, is it free first 100K? As a private person one pays 18 percent, but am not sure if the taxman regards trading as business!

[3JN2]

I trade as a Sole Proprietor - no different than if my business was a corner cafe. Full audited financials, balance sheet etc done by accountant. Write off allowable expenses - computers, internet connection, trading expenses, courses, books, home office etc as long as you have an invoice. Profits from business paid to me and taxed in normal way as an individual. Turn losses into dividends by buying cfd on last day to trade then sell either at small loss or breakeven once share recovers from dividend fall. Short same share if you think will fall more than dividend amount (SSF & cfd adjust by dividend amount).

[geordie1]

I invest as a cc-pay salary to myself and wife-set up provident fund and medical cover-while cc not formally audited it probably costs a little bit more than a sole propriator but not much and has a little more flexability-yearly accounts needed-you could even set up a pty but then business has to justify this re additional expenses.Horses for courses.