Okay, please bear with me here as I'm not too good at writing forum posts for some reason.
I run a small limited company (welding & fabrication) and make just enough to live on and a bit for a rainy day. For the last 4 year I've been day trading profitably and this has supplemented my income and have declared any earnings from day trading through self assessment. I don't know if it matters but I trade currencies, cryptocurrencies and occasionally stocks & shares. I don't make a lot out of it but it does supplement my income.
This is where things have become complicated for me, today I was having a discussion with somebody online who suggested that I should also be declaring the turnover of my trades rather than just any income I receive from trading. Today I went through all my trades for the last 12 months and the turnover was just over £450'000 before trading fees. One thing that was brought up in the conversation was that if I was to have a tax investigation from HMRC there would be a lot of akward questions regarding where this extra income was coming from and there would be possible implications as I've never declared the turnover from trading or the value/details of each trade.
Would anybody be able to shed any light on whether turnover should also be declared?
What about the value of each trade and how exactly should it be declared?
If I should be declaring the value of each trade then is there any accounting software you would recommend for this?
I genuinely didn't realise the total turnover was as high as it was (it's something I've never considered at any point in the past) and this is a good bit more than the VAT threshold, should I be registered for VAT for day trading although the current profits wouldn't cover VAT on the value of the turnover as the profit margin is not that high.
Would there be any benefit to trading as my limited company rather than as a sole trader? My limited company is VAT registered (although under the threshold) and how would this impact the company for tax purposes. Admittedly, having an extra 450k on the companies turnover would look impressive but it is almost 10 times the current turnover and I'm aware this would likely have tax implications.
If there's any advice that could be offered it would be greatly appreciated. I now realise that this is something I should have been taking advice on long before now.