Zopa

uncommonadvice

Do I need to pay tax on Zopa earnings?

Lokolo

Yes. :cool:

olivetti

If you have not done it already, and if you have invested in Zopa already then you really should have, I suggest you read the info and FAQ on the website.

It is much more complicated than a bank account or even shares, with regards to tax, and you should see what the potential consequence are. Especially on any bad debts, as you will not be able to claim the bad debts against income but instead they are a capital loss. I believe zopa are in discussions with HMRC/UK Treasury about changing this but that is not on the cards in the near future as it affects so few people at present.

uncommonadvice

I have a few hundred out on a loan at the moment so not a big investment. Ta.

Gorgeous_George

Hi

ATM you need to pay tax on all of the interest (after fees).

GG

LeeSouthEast

Yes you have to pay tax. I just keep a note in spreadsheets about what I owe the big boss. Simple enough to send them a cheque for a few quid at the end of the year with a covering note and your NI number. Or alternatively they'll just adjust your tax-free allowance down the next tax year.

00ec25

not sure how new to Zopa you are but every year Zopa will produce an annual satement showing gross interest, fees paid and (surprise, surprise) the net interest earned. If you incur bad debts this amount is also shown but for info only, as said above you cannot claim relief on the bad debts

you pay tax on the net figure

BTW - hello to GG, I wondered if you were the same person