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Where Taxpayers and Advisers Meet

Setting up a share trading company

Radica87
Posts:1
Joined:Wed Jun 17, 2020 2:32 pm
Setting up a share trading company

Postby Radica87 » Wed Jun 17, 2020 2:41 pm

Hi -

I am an individual who has lost his job due to Covid-19 situation. Luckily, my wife has her job and we stay in a rented apartment in London.

I am considering to set-up a company in my name to do investing/trading. Could someone please help me with the following questions:

1) Business expense - Would part rent, electricity, internet bills qualify as business expenses?
2) Business activities - I am planning to also do freelance advisory work alongside. Could I use the same company for this work
3) Red flag - Any major concerns to be aware of?

I have exhausted the ISA limit for me and my wife. Keen to understand if it is worth setting up this company.

Any help is really appreciated.

Cheers,
B

jerome.lane
Posts:237
Joined:Mon Aug 12, 2019 8:41 am
Location:Sandhurst, Berkshire
Contact:

Re: Setting up a share trading company

Postby jerome.lane » Wed Jun 17, 2020 4:24 pm

If you have no other income, you might find that it is more tax efficient to invest in your own name. Unless you expect huge margins, it’s probably going to work out better for you.

Mixing investing and consulting income (A trade) can have negative effects.

Reasonable home as office expenses should be allowable against the consultancy. You’re probably on trickier ground with investing but in essence, also possible.

If you want to call me to talk through your circumstances, I’m happy to discuss with you. Jerome
Jerome Lane
Tax Adviser
Telephone: 07943 005902


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