Record keeping for share traders

[forest]

Hi, would anyone know what records need to be kept if I trade in shares as an individual, for tax purposes? And would record keeping be different if I set up a Limited Company solely to trade in shares? Thank you :-)

[OldRider]

I'm not an accountant so maybe someone better qualified will post but
from my experience some ideas to start
You would need a record of each/every share purchase together with the cost,
a record of each/every share sale together with the value received
a record of dividends received together with tax and/or imputation credits.
together with the payment slips

A list with value of each holding eod on 31 March to start new year 1 April
and a concluding value 31 March eod to end year.

If a company it would be wise to minute all transactions

Seeing you are a trader a record of all expenses, probably a separate bank would be useful
so a list of bank statements. Can be easily managed in an Excel spreadsheet.

[shasta]

I'm not an accountant so maybe someone better qualified will post but
from my experience some ideas to start
You would need a record of each/every share purchase together with the cost,
a record of each/every share sale together with the value received
a record of dividends received together with tax and/or imputation credits.
together with the payment slips

A list with value of each holding eod on 31 March to start new year 1 April
and a concluding value 31 March eod to end year.

If a company it would be wise to minute all transactions

Seeing you are a trader a record of all expenses, probably a separate bank would be useful
so a list of bank statements. Can be easily managed in an Excel spreadsheet.

That pretty much covers it, as a company you will have to account for "unrealised gains/losses", whereas as an individual you only need to account for "realised gains/losses".

FX transactions are fairly straight forward, & your broker should have all the details you require on the individual contracts

Your broker should either send you hard copies or an email of all your transaction details, which can be easily maintained on a spreadsheet

Unless the amounts you are investing with are fairly large, a company structure really only complicates things IMO, for some reason people get hellbent on trying to minimise/avoid tax, & lose sight of trying to make money!

[Aaron]

That pretty much covers it, as a company you will have to account for "unrealised gains/losses", whereas as an individual you only need to account for "realised gains/losses".

FX transactions are fairly straight forward, & your broker should have all the details you require on the individual contracts

Your broker should either send you hard copies or an email of all your transaction details, which can be easily maintained on a spreadsheet

Unless the amounts you are investing with are fairly large, a company structure really only complicates things IMO, for some reason people get hellbent on trying to minimise/avoid tax, & lose sight of trying to make money!

Hi Shasta, I was just wondering why individual/sole trader traders don't have to treat shares on hand at the end of the financial year as trading stock.