New queries

Into the future

Does the trading of futures derivatives comprise a trade with eligible loss relief?

Towards the end of 2013 my new client registered with HMRC as a sole trader because he was trading futures derivatives for himself.

Despite making several attempts to register with HMRC as a self-employed individual he has still not received a unique taxpayer reference (UTR) and has consequently not yet paid any National Insurance contributions.

After office costs and fees the client has made a loss for his first six months of business of about £30 000.

Would HMRC be convinced that “trading futures derivatives for myself” is a trade at all? And to what extent might the losses be allowable for tax purposes?

When the 2013/14 tax return is prepared should the income and expenses be declared on a self-employment page as the client seems to...