Investment Clubs meet tax deadline with timetotrade
Published May 23rd, 2008
timetotrade has launched a new tax calculator which helps Investment Clubs prepare to submit their HMRC tax returns, in advance of the UK Inland Revenue’s 6th June 2008 deadline. The new timetotrade investment club management software can be accessed by private investors and individual investment club members at http://www.timetotrade.eu
Most Investment Clubs in the UK have chosen to adopt the HMRC’s Standard Form of Agreement. This is a simplified arrangement with the UK Revenue, that removes the need for Investment Clubs to file Partnership Tax Returns. In adopting the Standard Form of Agreement, Clubs agree to submit a simplified return to HMRC each year, and disclose full details of any capital gains, losses or income made by the club. The simplified return is called “Form 185 (New)” and the deadline for the 2007/2008 tax year is 6th June 2008.
The Form 185 (New) must be completed on behalf of each club member in turn; and lists the income, and gains and losses made by the Investment Club during the tax year, along with each member’s proportionate share of those income and gains.
For the Investment Club Treasurer, determining each member’s proportionate share can be a nightmare, especially if different members pay different subscriptions, or have made lump sum payments or withdrawn money from the club. To get around this, clubs use a “Unit Valuation System”, similar to that used by commercial investment funds, eg OEICs and unit trusts, whereby member subscriptions purchase units in the investment club.
The calculations can be complicated, but help is at hand. timetotrade have developed an online investment club management system and tax calculator, which calculates the value of each member’s share of the club and their proportionate ownership using the Unit Valuation method. When calculations are complete, timetotrade allows the Treasurer to print off a fully completed Form 185(New) for each club member - at the click of the button.
Dary McGovern, managing director of Sensatus, the developers behind timetotrade said “Investment Club Treasurers are generally left with all the hard work: dealing with their club’s paperwork. timetotrade will ease this burden and make preparing this year’s tax returns a joy”
timetotrade are the developers behind the UK’s leading on-line investment club management software, enabling clubs to easily manage member subscriptions withdrawals, unit valuation and generate UK Inland Revenue Form 185(new) tax return.
In addition to this timetotrade provides investment club members with the ability to:
• View an online summary of their individual investments each time they log in. For example each member will see the total value of the open positions, the value of their individual units, and daily change in unit value etc.
• Manage member subscriptions and Unit Valuation System
• Generate detailed reports on investment transactions, unit value performance and return on investment
• Create price and technical analysis alerts against a range of different technical indicators. This includes MACD, RSI, Stochastic, Bollinger Bands, exponential moving average and volume – so you never miss another trading opportunity!
• An online forum for collaborating with members on important investment decisions
• A document storage area for archiving important information such as monthly club minutes
• Facility to manage club roles, responsibilities and access privileges.
• For established clubs, members can view their apportioned Capital Gains and Investment Income to help complete their Self Assessment tax returns.
• More information can be found by clicking on timetotrade’s investment club user manual http://www.timetotrade.eu/wiki/index.php/Investment_Club_Software
To find our more about timetotrade visit http://www.timetotrade.eu
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