Tax Consultancy Assignment
At Decipher Tax we provide a bespoke tax consultancy service for each of our clients. Each assignment will take around 6 months to complete; from engaging our services to getting to know our client better and presenting our client’s day trading activities to HMRC.
Understanding our client
Having spoken with you during our initial discussions, we will have gained a general understanding of how you approach your day trading activities and how your activities fit in with your personal circumstances.
To get a more detailed understanding of your activities we will send you an online questionnaire for you to complete. We won’t require you to send us details of your income and expenditure or any bank statements. Our questionnaire will ask questions such as:
- How many hours you spend trading;
- How often you trade and the frequency of transactions;
- The average length of time between opening and closing a trade; and other similar questions about your activities.
Technical tax research
This is where we get to the nitty gritty. We will review HMRC Guidance and relevant tax case law in light of your specific circumstances to determine whether you will be classed as a private investor, a self-employed day trader or whether your day trading activities are not taxable.
Personal Tax consultancy
All the work we have done together in establishing your tax status will be presented to you in the form of a letter addressed to HMRC. We will work with you to finalise this letter for your approval and signature. During this process we aim to give you a good understanding of the tax implications of your activities. Then, once our work is complete, you will be in a position to take control of your tax affairs and become aware when something might need updating or revising.
Assignment completion and debrief
Once HMRC have provided their written agreement as to the tax treatment of your day trading activities, you will then know how to report your day trading profits on your tax return. Provided your activities remain in line with the information presented to HMRC then your tax status will remain unchanged. Should there be any changes to the information presented to HMRC, we hope that we would have shared with you enough knowledge that you are able to confidently contact HMRC yourself to inform them of these changes. However, should you require our assistance after the assignment is complete we will be more than happy to help.