Can you draw dividends as soon as you've invoiced? and..erm..spreadbetting....

[IR35 Avoider]

Spreadbetting because it has the word 'betting' in it does conjure up notions of pure gambling. CFD trading on the other hand is viewed not so much as gambling but as 'trading' which is more associated with the big investment banks, exchanges, floor traders etc.

The difference between the two is that one is liable to tax and the other isn't. other than that it's the exact same instruments, the exact same charts, the exact same methods of placing trades, managing risk etc. I would spread bet if I was allowed to but clientco (IB) forbids it. So I trade using CFDs instead.

If and when I have surplus company funds I will definitely invest in funds, individual shares and a *portion* I will trade the more volatile securities (currencies, commodities). If I can do that tax free through spread betting then why the heck not!

I agree with most of what you say.

I would add that one could use a spread betting account to simulate perfectly ordinary and sensible investment activities. For example bets on index futures could be used to create a synthetic index tracker fund. The primary reason I don't do this because conventional instruments do the job more cheaply.

However the most important fact to add is that most individuals with an account eventually end up losing money. People lose so reliably that IG Index actually stated in its prospectus when it went public that it tries as far as possible not to hedge its customers bets in the underlying markets. It is so confident they will lose money in aggregate that it sees being on the other side of whatever they collectively decide to do as an important source of profit.

[THEPUMA]

Betting with company funds? It isn't illegal but being that stupid to do it should be.

Why would that be stupid? If you have no funds personally and are confident in your ability to make spreadbetting profits, it seems perfectly sensible to me.

[northernladuk]

Why would that be stupid? If you have no funds personally and are confident in your ability to make spreadbetting profits, it seems perfectly sensible to me.

The OP specifically points out two options, spreadbetting and betting. I refered to the betting option. He also mentions drawing dividends before he has been paid. I would assume this practice would also lead him to be betting with money he hasn't received either which is heading for trouble I would say.

Everyone is comfortable with their ability to make profits, that is why people do it. The outcome is a different matter, doing it with company money and failing leaves the OP in a pretty dire situation. Just playing devils advocate.