To make money out of spread betting while on benefits

www.independent.co.uk/news/business/analysis-and-features/how-could-a-teacher-on-18000pa-lose-280000-spread-betting-10115157.html

www.tradingspreadbetting.com/trade/trading-and-taxes
Article references:
www.hmrc.gov.uk/manuals/bimmanual/BIM22020.htm

Directly from the article:

Is financial spread betting (be it derivatives, forex trading, whatever) gambling (hence not subject to tax), trading (hence subject to income tax) or investing (hence subject to CGT)?
Spread betting is essentially day trading with one important difference that no assets exchange hands – still if you get a market direction right you make money!
From BIM22015 “The taxpayer placing a spread bet is not normally carrying on a trade (see BIM22020 for exceptions). They are not taxable on the profits, nor do they receive relief for their losses.”
From BIM22020 “To be taxable, the spread betting wins must come not merely from an opportunity presented by a trade, they must arise from the carrying on of that trade. Whether or not a particular spread bet is taxable will depend on the terms of the contract and the economic substance of what is done.”
My interpretation of this is that if you do something else for a living, which makes you realise a bit of cash could be made from a certain spread bet, it’s not a trade. But if what you are doing day in day out is spread betting, then it is a trade…

Spread betting is totally gambling!

You are just betting on the difference between things rather than absolute numbers.

So, say, the number of goals scored in a football match rather than who wins.

basically OP, if the tax man gets wind of what your are doing, effectively working as a traer, he will want a bit of your profit.

If you don't tell him about your profit and he find outs about it he will pop a little letter through your door asking for money.
as you're only earning a relatively low amount you "Should" be okay but it's still something you have to be wary of.

BetsyMoo

I think i'm right in saying that "Spread Betting" is somewhat of a misnomer as it's not gambling per se as the name would suggest.
I believe under tax law, and i'm not a lawyer, that if you made a one of investment and made a profit then you're fine but if you continue trading then effectively you're a trader and are accountable to the tax man.

Unlike "matched betting" which is totally tax free as it falls under the laws of "Gambling"

If you were doing matched betting then profits are not counted as income for benefits or tax.

Spread-betting is a type of contracts for difference (CFD).

According to this, spread-betting (unlike other forms of betting) is recognised as an investment under the Financial Services and Markets Act 2000.

So I would imagine, just like any other investments, it has to be declared for benefit purposes.

And Argy people are still eligible for benefits when they hold under the savings threshold allowed. And are also allowed to spend their money any darned way they choose!

You have to declare it i believe and you also have to tell the tax man.

As far as i am aware, Spread betting is only Tax free if it not your main source of income, if you're on benefits then spread betting is naturally your main source of income and the tax man will want a slice.

Be very wary OP. If the tax man finds out and you haven't declared it to the benefits office and the tax man you will get sanctioned and billed and may end up in a very ropey position.
(i certainly wouldnt be posting in public forums about it)

Well if you won a tenner on the lottery would you declare it? Probably not. What about ten grand? Probably yes. So wait til the end of the year and decide if you think you should. No offence, but I bet you don't.

Tbh I wouldn't bother declaring it
But that's just me

It's shares and equity and all that stuff isn't it?

What's cfd? Presumably over the year you will lose money too so maybe wait and see whether you end up in profit. If so you could then declare it for tax/benefit purposes. Actually that sounds too reasonable. Also if you have spare money for gambling you shouldn't be receiving benefits. YABU.

It depends what your income is from it really, doesn't it?
Yes it's a risk so you could make or lose money, but it depends what kind of money you are talking about.
I'm not on benefits so can't really advise you on the legalities, but presumably there is a threshold and after that you have to declare otherwise it's fraud. But maybe someone with some actual knowledge might come along soon. Then again, its in AIBU