Peer-to-peer lending sites: MSE guide discussion

donerkebab

Anyone else on FS got the email about Secondary Market changes - what is the implication of restriction to 1% discounts? Still waiting for my ISA funds to transfer but be good to understand what this means.

fonsde

Do i need do declare my earnings? I made £2 during the previous FY.

Do I need to do anything?

AlanP_2

fonsde wrote: »

Do i need do declare my earnings? I made £2 during the previous FY.

Do I need to do anything?

If you are a Basic Rate taxpayer you can earn £1k in interest with no tax liability, a Higher Rate taxpayer can earn £500.

Add up all the interest you earned in the tax year and see if you are liable. If you are tell HMRC and they will adjust codes etc. to collect it, if you aren't then nothing to do.

elephantrosie

AlanP wrote: »

If you are a Basic Rate taxpayer you can earn £1k in interest with no tax liability, a Higher Rate taxpayer can earn £500.

Add up all the interest you earned in the tax year and see if you are liable. If you are tell HMRC and they will adjust codes etc. to collect it, if you aren't then nothing to do.

I thought it is 5k on investment income for higher taxpayer?

jamesd

Depends what you mean by investment income. There's a £5,000 dividend allowance as well as the personal savings allowance and you might be thinking of that five thousand of investment income.

jamesd

When telling HMRC you are typically expected to round the number down to the previous ten pounds. Since two rounds down to zero there would be nothing to report anyway. So you might mention it as an aside whenever you next have something that would cause them to want to hear about it.

elephantrosie

jamesd wrote: »

Depends what you mean by investment income. There's a £5,000 dividend allowance as well as the personal savings allowance and you might be thinking of that five thousand of investment income.

oh...no i am not referring to interest gained from savings.

so as a higher tax payer of 40%, i only have 500 pounds limit on investment gain before i get 40% tax?

elephantrosie

i have recently set up an account on ablrate and am looking to invest on the platform. i heard new loans are far and rare on ablrate, so am looking at SM.

rather confused by its SM. some of the bids have been less than 100%. does that mean that the investors selling the bids less than 100% are going to lose some of their capital?

Eco_Miser

elephantrosie wrote: »

oh...no i am not referring to interest gained from savings.

so as a higher tax payer of 40%, i only have 500 pounds limit on investment gain before i get 40% tax?

You seem to be confused.

The Personal Savings Allowance (£1000/£500/£0 depending on marginal tax rate) covers interest paying investments such as Gilts and P2P as well as savings and bank accounts.

The £5000 dividend allowance covers dividends that result from owning shares in profitable companies, either directly or through a collective investment, and any tax payable is at a lower rate.

Gains in investments (rather than income from investments) are charged to Capital Gains Tax if they exceed the £11300 (?) CGT allowance.

So as jamesd said "Depends what you mean by investment income."

Trentenders

elephantrosie wrote: »

some of the bids have been less than 100%. does that mean that the investors selling the bids less than 100% are going to lose some of their capital?

The bids (left column) are what people currently want to buy loans for. The offers (right column) are what people currently want to sell loans for.

You can currently buy the following loans on the cheap (offers for less than 100%):

• Basket of British SME secured loans
• Secured Loan to Vehicle Dealerships
• Secured Bridging Loan