What is the definition of a day trader?

Generally speaking, when people refer to day traders, they mean individuals who open and close a trade on the same day.

We at Decipher Tax provide tax advice to individuals who make profits from trading whether they open and close a trade on the same day or whether they hold positions for longer than a day.

Please note that our advice is for the benefit of individuals who open and close trades within a relatively short period of time with a view to seeing a quick return. This is as opposed to individuals who engage in trading activities as a vehicle for long term investments.

Who is your typical client?

Our clients are individuals who engage in day trading activities on their own behalf using an online platform.

Our clients may spread bet or trade CFDs, where the underlying asset might be shares, FOREX or another asset. Other clients trade financial products which aren’t leveraged. We can help clients that trade any of the broad spectrum of financial products.

I have only just started day trading, should I be concerned about my tax position?

If you are day trading, making profits and treat your day trading activities as an occupation then you should consider how HMRC will view the income you earn.

I have been trading for some time but have never considered my tax position. Is this a problem?

This is not necessarily a problem.

The nature of day trading means that no two days are the same, let alone any two months or years.

The fact that the way in which individuals day trade can change rapidly might mean that the tax treatment of an individual’s trading income varies from one year to the next.

The potential variations in tax treatment of an individual’s day trading income gives us scope to look back over the time a client has been day trading and ascertain how best to present our client’s circumstances to HMRC.

Our advice is, if you’ve been day trading for a while and haven’t yet considered how HMRC will view the day trading profits you have made, don’t hesitate to get in touch with us, as we might be able to help you.

How much do you charge an hour?

We don’t bill our clients on the basis of hourly rates. We charge our clients a fixed fee.

Most other accountancy firms providing tax consultancy or advisory services charge their clients by the hour, with no cap on the total fees charged.

Our fixed fee provides our clients with clarity and transparency from the outset.

Please see Our Fees page for further information.