Dealer in Stocks and Shares
I am a Sole Practitioner and I have been asked to act for someone who just deals in shares on the stock market. I normally look after corner shopkeepers and sub contractors but I would really like to advise this chap. My problem is that I wonder if there are any special issues to deal with when preparing the accounts and SA Tax Return. My client's turnover in the first year was about 2 million pounds. For instance I presumably have to account for the sales and purchase prices to arrive at a gross profit - as you would expect. Anyway i am just looking for all of the key 'trip-ups' to watch out for so that I can look after this person and I don't look stupid myself!.
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Some questions to ask:
How long has he been doing this? Is he successful? Has he had any correspondence with HMRC in the past, have they questioned his operations in any way? What else does he do? What is his personal background? What is his tax background (previous liabilities)? Has he prepared accounts previously? At £2m turnover I assume that he has a seperate business bank account or stock trading account.
In theory, it could be a decent appointment. Good luck!