CFD Trading as sole source of income

Hello, New to this forum and not seen this specific question asked. I am about to start CFD trading full-time as my only source of income. I understand I would need to pay Capital Gains tax on any profits made but it's not clear if I am allowed to do this as a sole source of income or would the argument be that as it is my only source of income I should in fact be paying income tax and NI - much as they would argue if I were to spreadbet full-time.. Are there any gottcha's that I should be aware of? I don't want to fall foul to any misinterpretation or what have you and be hit with an unexpected bill. Many thanks in advance.

Hi

There is no clear answer to this question, that we can provide on this forum, as there is no statutory definitin of a 'trade'.  
You will need to review the guidance at BIM20000 onwards https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim20000
to decide if a trade or the venture in the nature of a trade exists.  
For a more indepth review of your personal circumsances with regard to trading, you would need to contact our webchat helpline and seek the advice of technical support inspector (TSI).  
You will be able to call the self assessment helpline and seek the advice of technical support inspector (TSI) after 4 September 2023.  
They would be able to review the Business Income Manual with you, to help you make an informed decision. You can find contact details here Self Assessment: general enquiries

Thank you

Hmm ok so stock HMRC response - "we can't state our position in writing but reserve the right to treat each case as we wish via max tax.." This is why the country is in the mess it is - how can anyone expect to get on when ones tax position is not transparent - pretty sure that's part of the rule of law btw: "Taxpayers have a moral obligation to pay the taxes due by law, but should not be expected to second-guess the intentions of lawmakers. 'Anyone may arrange his affairs so that his taxes shall be as low as possible; he is not bound to choose that pattern which best pays the Treasury." Can we agree that HMRC's stance would in fact be that if I were losing money, CFD's are treated to capital gains tax BUT if I successfully make money by using a strategy you'll be expecting Income and NI from the proceeds? If you can't answer that in completeness then surely no Financial Advisor or Wealth Manager would be able to assist as the rules they are governed by are made up on a case by case basis by HMRC... Looking forward to a constructive and concise response.

Hi STUPPSTER21

This forum is for general guidance only and we cannot comment on scenarios whether hypothetical or not.
You would need to contact us in writing, telephone or webchat for a specific reply to your particular circumstances

Thank you