Self-employed asset management

[mazdaq100]

Hi

Just started trading the FX markets with a new broker, the earnings from which are taxable. Previously, I was using a spread betting broker which is not taxable. Now I need to prepare accounts for my tax return. I just have a couple of questions:

-Which box on my tax return should I put my total losing trades - do they go in cost of sales? Or should I net my losing trades off against my winning trades and just put the net figure in the turnover box?

-I know that if, for example, I bought a new PC, this would go down as a capital expenditure not a revenue expenditure. However, what about small bits of IT hardware that upgrade my existing PC to the standard that I need for my trading e.g. new monitors, extra RAM, new graphics card, monitor stand, wireless keyboard and mouse? Can these go down as revenue expenditure i.e. in this years P&L?

Thanks.

[Ian McTernan CTA]

Capital allowances are generally covered by the annual investment allowance and hence the whole amount is claimed in year one, so don't worry about those for the moment- until they scrap AIA of course!

Always a tricky one but in theory your turnover can be in the millions if you included the value of every trade!

In practice, as you are being treated as a trade the 'income' is the net difference between the trades, ie the profit (or loss) as shown on your summary statement that you will get on a mark to market basis as at 31 March or 5 April. It is important to note that open trades need to be included at the year end and hence the need for the mark to market report at the end of the tax year.

I act for a trader and the Revenue are happy to use this basis- as long as you are consistent and use the same basis every year.

[mazdaq100]

Great, thank you Ian.