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Income/Capital Gains Tax on Funding Circle Earnings
darren72
Posts: 1,309 Forumite
in Cutting tax
I'm just looking at my tax certificate for Funding Circle for the tax year 2014/15 and I'm trying to find out what figures I should be declaring on my self assessment form.
Tax Statement – April 6 2014 - April 5 2015
Investment Income (income tax payable)
Total interest earned: £559.33
Funding Circle servicing fee: -£53.60
Net payments made to you: £505.73
Capital Gains/Losses (capital loss relief available)
Bad Debt: -£88.38
Recoveries: £19.24
Net gain (if positive) or loss (if negative): -£69.14
Capital loss (eligible for loss relief): -£69.14
It says in their documentation that no tax is deducted at source.
Should I be declaring interest earned as the £559.33 or the amount of their servicing fee - ie, £505.73 ??
Also, I assume that I can claim the 'Capital loss' if necessary against any capital gains tax I am due to pay in that tax year ??
This is the first year I've used Funding Circle so any guidance would be appreciated
Tax Statement – April 6 2014 - April 5 2015
Investment Income (income tax payable)
Total interest earned: £559.33
Funding Circle servicing fee: -£53.60
Net payments made to you: £505.73
Capital Gains/Losses (capital loss relief available)
Bad Debt: -£88.38
Recoveries: £19.24
Net gain (if positive) or loss (if negative): -£69.14
Capital loss (eligible for loss relief): -£69.14
It says in their documentation that no tax is deducted at source.
Should I be declaring interest earned as the £559.33 or the amount of their servicing fee - ie, £505.73 ??
Also, I assume that I can claim the 'Capital loss' if necessary against any capital gains tax I am due to pay in that tax year ??
This is the first year I've used Funding Circle so any guidance would be appreciated
0
Comments
-
Investment Income
It’s the full £559.93, the interest arising.
http://www.hmrc.gov.uk/manuals/saimmanual/SAIM2440.htm
Capital Gains/Losses
I have to say I have never heard of bad debts in the context of Capital Gains.
In taxation, bad debts are normally associated with trading income and it is possible to set trading losses against Capital Gains.
http://www.hmrc.gov.uk/manuals/bimmanual/BIM85025.htm
However it is difficult to see that you have been trading but, if you were, there would probably be better opportunities to set such losses against general income.
Unless somebody else comes up with a better answer I think you should ask Funding Circle.
0 -
This post on the FC blog, states that HMRC are saying that it must be payed on the Gross interest from this April which indicate that previously it was on the net amount you received.
The good news though is that bad dept losses can now offset the tax due on interest rather than GCT.0 -
Keep_pedalling wrote: »This post on the FC blog...
Which post? I think you missed a link.0 -
Which post? I think you missed a link.
Whoops!
https://www.fundingcircle.com/blog/2015/04/talking-tax/
Sorry about that.0
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