Sports Arbitrage Trading (3) - Tax Free Profits

In UK history it’s always been difficult for young people to get ahead. It now transpires that the euphoria of the last ten to fifteen years was very misleading for many young people of the lower to middle classes who thought that they could buy things that they couldn’t really afford on a never ending credit roll up. Unfortunately that myth has been well and truly shattered and the future is back to looking bleak, if not bleaker, for the middle class of Great Britain in 2008.

One of the greatest problems for young people setting out on adult life was, and still is, to acquire property of their own. Before the great credit boom descended on their lives, young couples who wanted to buy a home were faced with the difficult task of raising a deposit of thirty percent of the property value, and repaying a mortgage for up to thirty years on the balance. It appears that in those more sensible times, the banks were not stupid and they were acting not only for their own security but also for the security of the buyers, as recent events have amply demonstrated. For a young couple, with only one salary coming in, and with two or three mouths to feed, the possibility of getting ahead is very slim, especially if the wage earner is on a fixed salary with no chances of bonuses, overtime or any additional income from that source.

Many young, and even not so young, people look to push themselves forward by earning extra income by taking on part time jobs. In the UK, the income tax authorities have never really been too charitable to those who look to supplement their income, either through their principal employers, or by earning money through a part time job during evenings or weekends. The tax barriers are far from generous in favor of the worker, and many people come to the realization at the end of the month that it is really not worth their while trying to earn extra money legitimately. Once they take into account travel expenses, the loss of free time which might otherwise be spent time at home with family or with friends, added to that sinking feeling that the tax man is doing a lot better out of the deal than they are, it seems easy to decide to throw in the towel, and face the inevitability to lead a life without frills, and possibly never owning their own property.

This feeling of hopelessness sometimes leads those who want or need to earn extra money reluctantly to join the rapidly expanding black economy, The obvious drawbacks of working for cash are the risk of being caught and heavily fined as well as the lack of insurance cover in the event of a work accident occurring. From an earnings viewpoint, the hourly is never that high, and sometimes the person or company who uses the services of someone "working on the side" can decide not to pay, or to deduct a major percentage of payment due for whatever reason and there is very little that the illegal worker can do about it. In short, the conventional methods of working part time to earn additional income just to survive or even get ahead of the curve a little are no bad of roses. And it’s not getting any easier, or more worthwhile

There is a certain irony that the "big boom" and the birth of the global economy eventually led to the "financial adjustment" currently taking place in the World’s financial market place. The ability to communicate instantly and carry out the most intricate of business transactions within seconds and across continents, may have led people to believe that there was less financial accountability than there used to be, but this is far from the truth, and when the financial adjustment is completed, then there will be a lot of people in the World much less well off than they were before, at least on paper.

On the major plus side of the internet explosion, instant business opportunities have been presented to millions of people around that circumvent the problems that they previously experienced when trying to pick up some vitally needed extra income. However with new opportunities come new challenges, and many people find themselves much worse off than they were beforehand by making the wrong choices on which of the many "so called" opportunities presented to them.

Yet there were those that prosper, and there are others who have discovered particular niches which specifically suited their talents and are beginning to accumulate considerable additional income from working online. While it may not appear so, any money earned online, either in the United Kingdom or anywhere in the World, must be declared as income. There are many internet entrepreneurs who have made the mistake that they are outside the rules because they earn money online. Eventually this money has to be spent or banked, and when that happens, they discover that the long arm of the Income Tax authorities can reach out to grab them. They will feel their collar getting felt, and that their problems are manifesting themselves in the real World and not in a virtual one.

The internet is a vast global market with billions of dollars changing hands very day, and despite the concerted efforts of the World’s tax authorities, there is absolutely no possibility that they can or want to tax every penny that is earned online. To an extent they are dependent on the honest people of the World to declare the income earned from online activities. Yet it is a very thin line that is drawn between selling your property which is legal and non taxable to selling your produce and services which is liable to taxation in the eyes of the UK legal system.

More and more people are discovering a method of earning unlimited income online which meets all the criteria demanded by the stay at home worker, with two significantly important features:

• The activity is risk-free.
• The profits are tax free.

The system is based around sports arbitrage trading, and because it exists in a form that falls between wagering and investing profits earned cannot be taxed. And better still, someone who decides to boost their income through investing in sports arbitrage trading and follows the procedures that are clearly explained to them, stand no risk of losing their investment and can only profit.

Earning spare cash is great but the peace of mind of being able to earn it without risk and without having to cover up your profits from the tax man makes this system hard to beat. Someone who earns an average of £500 a month profit through sports arbitrage trading is essentially earning almost double that amount gross, with none of the overheads attached Much more than the average UK salary for an unskilled worker, and requiring nothing like the same effort.

Recently the UK press has picked up on this major breakthrough in internet based home run businesses and is singing its praises. These news pages, particularly those relating to online businesses are all passing on the same message. That if you invest the proper balance of time and money, you cannot fail to earn a handsome profit.

Like any online business, and any business for that matter, there are overheads to be covered. The software you use to scan for arbs costs money which needs to be recovered, and you need to be online and close to your computer in order to execute the trades, so earning your profits. There is a chance that the favorable odds on one of the pairings may suddenly shorten before the bet has been placed, and you are forced to find an alternative. However, with efficient trading processes this issue becomes far less significant and as long as you are actively trading by placing several arbs each day or week, your the profits will accumulate. The way to extract the best profit from sports arbitraged trading is to take a medium-to-long term view, and let your trading profits "roll up".

The longer you do this, the more you earn. Potential sports arbitrage traders should start with a certain amount of capital, and should be looking for realistic returns of investment. If the system is handled properly and you are consistent and thorough you can expect returns of between 80% to 150% to be returned on the whole capital sum invested annually. Free of all taxes!

Even the UK Treasury sang the praises of sports arbitraged trading in one of its recent dispatches, and they should know what they are talking about. The tax advantages promised are real, and are there to be taken advantage of.

Sports Arbitrage and UK Taxation
More information about how UK tax law relates specifically to sports arbitrage trading