Trading profit and loss account layout junior cert
The ETI Scheme applies to the following types of payment: Payments to subcontractors, contractors, gangs and partnerships who provide labour only. The ETI Scheme does not apply to the following types of payment: Social Security Old Age Pensions. Reimbursements by your employer for expenses actually incurred by you in the performance of the duties of your employment.
Labour only contractors, subcontractors, gangs and partnerships: The ETI Scheme applies to payments made to labour only contractors, subcontractors, gangs and partnerships. It does not apply to: Payments made by a private householder. Payments including a payment made by a business concern made to a limited company. Where materials are supplied. However, where only negligible amounts of materials are supplied - for example, a carpenter supplying only his tools, nails and screws - the Scheme will apply.
Labour only contractors and subcontractors: Those individuals who provide only their labour are treated in the same way as all other employees and must give their Coding Notice to their employer. If you are the gang leader, receiving payments on behalf of your gang, you can apply to this office for an ETI Exemption Certificate. If approved, this will enable you to receive payments without deduction of tax.
You will then become responsible for operating the ETI Scheme on all payments made to individual gang members. The same conditions apply to partnerships as gangs. Benefits in kind - these are everything, not in the form of money, which an employee and members of his family or household receives from the employer or from other persons, by virtue of the employee's job.
A simple description would be "perks of the job". Employees including directors of companies are affected because they are ultimately responsible for tax arising on any benefits they receive. It is also the responsibility of each employee to ensure that all benefits received, that are not included in the ETI schedules, are declared separately on his income tax returns. The reason for this requirement is that an employee may receive taxable benefits of which his employer may be unaware, e.
Please see our FAQs for notes relating to appeals or email taxenquiries gov. For information on civil partnerships and same-sex marriage, please see our FAQs. Benefits in kind may be defined as everything, not in the form of money, which you and members of your family or household receive from your employer or from other persons by virtue of your job.
The Guernsey Tax Tribunal is an independent appeal body set up to hear income tax appeals which cannot otherwise be resolved. The members of the Tribunal are completely independent of the Income Tax Department.
Summary of Allowances and Budget Resolutions: Companies and employers Further information is available on the Tax for businesses, companies and employers page.
Self-employment and businesses Further information is available on the Tax for businesses, companies and employers page. You may or not be subject to Capital Gains Tax on profits from trading on CFD depending on your individual circumstances. If you are subject to U. In the Vodafone example, when trading on CFD, you will also receive any dividends paid by the underlying asset i. The broker will adjust the price of the contract in your live trading account , by the equivalent amount of the dividend on the day the dividend is paid known as the "Ex Dividend Date.
This adjustment will be made in your favour so it is the same as receiving the full dividend. One of the main advantages of trading on CFD is having the ability to "Short" the contract or take advantage of the underlying price of the asset falling. Instead of buying the contract from the broker, the broker buys the contract from you.
So you are selling "Short" the underlying asset to the broker who will be implicitly Long. If the price of the asset then falls you will make money and the "Difference" will be paid into your trading account on a "Marked to Market" basis based on the closing price of the underlying asset each day. If the underlying asset goes up, you will lose money and the broker takes the "Difference" out of your trading account each day.
Trading short can be more dangerous than trading long. If you trade short, theoretically you can lose an infinite amount of money. The asset could go to infinity! Be careful when shorting on CFD or when utilizing any "vehicle" that allows you to short. You can expect to learn a whole lot more than this on our Educational Trading Programme. To be redirected to this area of the website click HERE. In terms of dividends, when you are short a CFD contract, you will also be what is termed "Short the Dividend" - When the company pays its dividend on the ex Dividend Date, The price of the contract will be changed in your live trading account , to reflect the amount of the Dividend in favour of the Broker.
You will be paying out the amount of the Dividend. Your initial deposit is known as your "Initial Margin. Let's go back to our Vodafone example. Well, the broker in this example will typically allow you to borrow up to ten times the amount you deposit on account to trade in Large Cap stocks. This is what we mean when we say that your initial deposit is used as collateral in your trading account to enable you to trade on Margin with.
The amount you pay to cover your losses on a daily basis is called your "Variable Margin. It is because the Broker will literally send you an email and pick up the telephone and Call you to deposit more money into your trading account to cover the loss. If you cant stump up the cash, then the broker will trade out of the position on your behalf and crystallise the loss.
In this instance you would be wiped out. You would be right. But you are missing the point here. What usually occurs when Retail Traders are trading on Margin is that they will utilise all of the leverage they are offered by brokers. This can be across one position or many positions. That's not so unrealistic. Retail Traders make this mistake all the time.
They think that just because the broker offers them ten times what they have deposited on Margin, they have to utilise it all. This is not the case.