Peer-to-peer lending sites: MSE guide discussion

rwgray

jamesd wrote: »

Not that I'm using it..., I can do better easily elsewhere.

And I think that's the point. For individuals with relatively little time, money and experience, the First Direct offering is really attractive. But once you have more of any of the above, the numbers just do not attract.

Rich.x

easteregg_2

There are now no less than 25 peer-to-peer companies operating within the UK. While Zopa, RateSetter and Funding Circle are the biggest there are others, some with higher rates. Search for "compare p2p lending rates" to see the actual rates after tax.

Satoshi

What happens if they stop paying you back and move abroad?

rwgray

Borrow a small boat and a large gun?

Wilkins

easteregg wrote: »

There are now no less than 25 peer-to-peer companies operating within the UK. While Zopa, RateSetter and Funding Circle are the biggest there are others, some with higher rates. Search for "compare p2p lending rates" to see the actual rates after tax.

The trouble with chasing P2P rates is that it is always the newer, less experienced operators who offer the high rates. As the defaults start to stack up, they will either go bust or the rates will fall as more stringent lending criteria are applied. Either way, the projected high returns probably wont last for very long.

Candy0107

Hi folks,

I current lend via funding circle. How would I go about paying tax on my savings - would I declare them and fill in a self assessment form ?

Thanks
Candy

badger09

Candy0107 wrote: »

Hi folks,

I current lend via funding circle. How would I go about paying tax on my savings - would I declare them and fill in a self assessment form ?

Thanks
Candy

If you already complete a self assessment return, then just include your untaxed interest from Funding Circle.

Assuming you pay tax, and don't need to complete a return for any other reason, just write to your tax office and let them know the amount of interest received (to 5th April). They will then adjust your code number and collect the tax through your wages/salary/pension.

jamesd

Just phone HMRC or send them a letter telling them the amount of untaxed interest you have received each tax year. Don't expect any hassle if you declare it going back a few years unless its many thousands of tax due, and even then it won't be a big deal.

No need for self-assessment unless you're already in it. If you are, just fill in the relevant box there instead.

You definitely should do it because the UK P2P providers are required to send a report to HMRC, so they should already know that you haven't declared it to them for any past years. They have thresholds where they just won't bother to chase things when the tax amount due is low but it probably raises the chance of them asking you to file a return.

Candy0107

Thanks for coming back to me on this.

I'll put a note in my diary to phone them in April.

Candy xxx

agent69

MrOverheads wrote: »

Not a single bad debt yet.

Just as well. Aren't these the people that charge you for trying to recover your money if a loan goes bad?