Peer-to-peer lending sites: MSE guide discussion

elephantrosie

p2p returns go under PSA?

TheShape

elephantrosie wrote: »

p2p returns go under PSA?

elephantrosie, can I ask that if you receive replies from posters that you find useful, that you press the 'thanks' button under their reply, it's a nice way to acknowledge when someone has been helpful .

Interest earned from savings, bank accounts and p2p interest earned can attract the 0% rate so long as total interest is under your Personal Savings Allowance. Anything over that is taxed at your normal rate. As my bank/savings/p2p accounts will 'earn' me over £1000 in interest this tax year, as a basic rate taxpayer, I will need to pay tax on any amount above that.

keyboardworrier

I've recently got into P2P investing, it's a good way to beat inflation (with risk of course!) I've recently opened an account with Octopus Choice which doesn't seem to get much attention, has anyone got any experience with it? I deposited £100 as a test and it pretty much instantly diversified across 10 loans , but wondering if there's anything to be aware of.

jamesd

Yes, P2P interest as well as savings account and corporate bond or bond fund interest are included in both the Personal Savings Allowance and the Starting Rate for Savings.

P2P sale profits are either tax exempt or taxable under capital gains tax if over the annual CGT allowance. Depends on the specifics of the platform. Ablrate sale profits or losses are always CGT calculations, MoneyThing hasn't said but since you can't sell at a profit there that's not a big deal.

TheShape wrote: »

ISAs at Ablerate and Moneything would be most welcome as p2p returns will take me well over my PSA this year.

I'm anticipating more than £20,000 in P2P interest this tax year so ISA availability will be nice to cut the amount of VCT buying I'll do. Cutting my pay down to a hair over minimum wage via pension contributions at least means that I'll stay well clear of higher rate income tax regardless. Next year likely to be more than £30,000.

dekkard

Does anyone know a quick and easy way get notified of the changes in Ratesetter's rolling market rates?

takesyourchances

TheShape wrote: »

It taking some willpower not to make anymore deposits as I think I'm at about my current sensible limit for p2p.

I know what you mean with deposits while no major new loans today, I put a bit into my S&S ISA this evening and topped up some infrastructure, but I have some waiting for new loans to appear too I'd like to see a few coming up on Ablrate.

With a repayment of a property loan today on Collateral, I took another £75 of the 9 month student property loan to keep it rolling, but will await new loans now across Collateral, MT and Ablrate and see what comes up.

takesyourchances

A new 13% loan on Moneything has come up for tomorrow, that will take some of this weeks money

elephantrosie

jamesd wrote: »

Yes, P2P interest as well as savings account and corporate bond or bond fund interest are included in both the Personal Savings Allowance and the Starting Rate for Savings.

P2P sale profits are either tax exempt or taxable under capital gains tax if over the annual CGT allowance. Depends on the specifics of the platform. Ablrate sale profits or losses are always CGT calculations, MoneyThing hasn't said but since you can't sell at a profit there that's not a big deal.
.

I thought p2p interest comes under CGT. well i must be wrong.
how about income gained from S&S?

takesyourchances

elephantrosie wrote: »

I thought p2p interest comes under CGT. well i must be wrong.
how about income gained from S&S?

If your income from S&S is in an ISA, it is tax free

elephantrosie

jamesd wrote: »

I'm anticipating more than £20,000 in P2P interest this tax year so ISA availability will be nice to cut the amount of VCT buying I'll do. Cutting my pay down to a hair over minimum wage via pension contributions at least means that I'll stay well clear of higher rate income tax regardless. Next year likely to be more than £30,000.

I would be very keen to learn more on p2p investment from you!