Taxation of P2P

Chadsman

Are P2P investments at Zopa, Funding Circle etc taxed at source or do you need to complete a tax return?
:beer:

mikb

Chadsman wrote: »

Are P2P investments at Zopa, Funding Circle etc taxed at source or do you need to complete a tax return?
:beer:

Currently they are NOT taxed at source, this may change if the government fiddle with things.

The income IS taxable, so you will need to declare it.

A whole tax return may not be necessary, sometimes just a letter saying "Dear Taxman, I earned this money from p2p and you already know about it, but here's my official admission" ...

If you are already on Self Assessment, you'll find a box to put it in.

You can't offset bad debts. There are arguments as to whether fees charged by the platform can or can't be deducted from earnings.

The P2P companies have been given different advice, so there's no way of knowing how that works until someone makes a proper ruling.