Peer-to-peer lending sites: MSE guide discussion

jamesd

masonic wrote: »

It may be advisable to write to HMRC and include this letter. One person who phoned HMRC was advised to do this, rather than write in the 'Notes' section of the online return or upload an electronic document. I will probably do so.

Those who have tax to pay on interest are still required to declare it to HMRC and there's a box on the return to use to indicate that the return contains estimated values, with the notes section to be used for details.

I'll be including an initial estimate and note that I may update this in a final return.

masonic

jamesd wrote: »

Those who have tax to pay on interest are still required to declare it to HMRC and there's a box on the return to use to indicate that the return contains estimated values, with the notes section to be used for details.

I'll be including an initial estimate and note that I may update this in a final return.

Yes I decided to update my return to include an estimate as well when HMRC clarified they would treat any additional tax owed as a late payment and charge interest on it when the final figures became known.

There is a post discussing the above and the need to write a letter instead of/as well as using the notes section here, which is well worth reading.

taylornj

You can go back and make corrections to a return, adding an additional document shouldn't cause any issues. Providing HMRC software is up to the task (they already tested out fining late returns, having sent them out before the cut off date for 2017/18).



https://www.gov.uk/self-assessment-tax-returns/corrections


For myself I wasn't going to include any actual offset of Collateral at this point, as unclear and have a record of the interest paid, and transactions while I can't produce a tax statement from collateral I can give an exact figure for the interest paid from my records.


I have enough defaults in Money Thing to offset enough interest to get £0 tax for the 2017/18 tax year. With the £2880 pension payment that gives me £720 tax relief, into the negative income tax again. Still working on my return so can include the letter with all the other letters and tax statements.


Again disappointment in BDO, since the Tax Return was produced by the database, said to have been recovered, so we are now being told the time and effort has only partly recovered things from the backup database. Simplest of tasks seem beyond these people.

AdrianC

taylornj wrote: »

Again disappointment in BDO, since the Tax Return was produced by the database, said to have been recovered, so we are now being told the time and effort has only partly recovered things from the backup database. Simplest of tasks seem beyond these people.

"Partly" recovered isn't good enough for the tax man, especially if the part that has been recovered may change due to other, non-recovered transactions.

If you're going to blame anybody for the data recovery scenario, blame Refresh. They had three full weeks of being the administrators, and completely failed to secure the data during that time. There was then a six week court-ordered hiatus before BDO could start work, during which (we're told) the "hosting expired" leading to the servers hosting the live database being closed down and the hardware reallocated - so BDO never had any opportunity to get access to it.

Why did Collateral not have offsite backups in the first place?
Why did RR not secure quite simply the single most important set of data during those three weeks?
Was it conspiracy to hide something, or simple incompetence?

masonic

taylornj wrote: »

You can go back and make corrections to a return, adding an additional document shouldn't cause any issues. Providing HMRC software is up to the task (they already tested out fining late returns, having sent them out before the cut off date for 2017/18).

Except that a letter explaining the situation should be mailed in according to the person who spent time on the phone with a HMRC tax inspector discussing the situation.

Psyduck1980

I've had a number of Funding Circle loans default since the start of the year and my overall returns have fallen to a very disappointing 4.2%. I'm considering selling the rest of my loans before things get even worse.

fun4everyone

Psyduck1980 wrote: »

I've had a number of Funding Circle loans default since the start of the year and my overall returns have fallen to a very disappointing 4.2%. I'm considering selling the rest of my loans before things get even worse.

After several years of maximum diversification I had a return of 3% showing on my account, got out of there as quickly as I could.

takesyourchances

fun4everyone wrote: »

After several years of maximum diversification I had a return of 3% showing on my account, got out of there as quickly as I could.

I sold out too good while back, their recovery of defaults in my experience is terrible, not that mine are big amounts but 20p recoveries here and there out of single loan defaults. The defaults I had defaulted at early loan stages as well.

It does not take much to bring your rate down.

Psyduck1980

takesyourchances wrote: »

I sold out too good while back, their recovery of defaults in my experience is terrible, not that mine are big amounts but 20p recoveries here and there out of single loan defaults. The defaults I had defaulted at early loan stages as well.

It does not take much to bring your rate down.

I agree completely on both these points. Recovery on my defaulted loans currently amounts to less than 1%. Virtually all my defaults have been within the first year of the loan and it's usually the A+ or A rated loans that seem to default suggesting FCs credit rating is pretty worthless.

Fatbritabroad

Just after thoughts opinions on what platform to research consider next for April

My tactic (slightly unwieldy but keeps me honest) is to open a new ifisa every year and split my contributions 1/4 ifisa 3/4 s and s isas. Keeps me from being greedy on the higher risk p2p and my additional funds stay going into standard taxable investments and don't really want to risk more than 5k per platform at the moment until my normal isas are higher . I'm split roughly 66k s and s and 20k p2p

Currently have

ablrate ifisa (i withdraw periodically in this and repay as it's flexible) fully diversified between borrowers (not loans)

Assetz capital 30 day account in ifisa

Lending works ifisa 5 years

Ratesetter none isa account 5 year

Bits in Kufflink assetz and lending works outside of isas for referral bonuses

Key criteria

5% minimum return

Happy to lend longer term 5 years plus although handy to be able to liquidate with small penalties. I reinvest everything as I'm building this to a level where it can provide a decent monthly income.

Ideally ifisa available

Was thinking either Kufflink or one of the property crowd funding sites like british pearl although I've considered property partner despite the lack of isa . What sites would people recommend I consider next and why