Income tax on those P2P refer-a-friend bonuses

FatherAbraham

I've noticed that the annual income statement for tax purposes from Zopa includes a line item for refer-a-friend bonuses, implying these are taxable income.

On the other hand, I also note that the annual income statement from RateSetter only includes interest, and makes no mention of refer-a-friend bonus payments, implying that these are not taxable income.

Which of the two esteemed peer-to-peer lenders is producing a correct annual income statement for tax purposes?

Thanks,
FA

FatherAbraham

Really, no-one?

bigadaj

If you want a definitive answer than maybe best to contact Hmrc.

I recall that someone mentioned the nationwide raf were subject to income tax previously, may be worth pointing out teh inconsistencies to the platforms you're using.

PeakOwl

As I understand it, if you are the referrer, then the income you receive for your referral is subject to income tax.

If you are the recipient of the referral, it is deemed an 'inducement' to lend and so isn't taxable.

Its the reason you might have noticed on some of the referral threads some people no longer willing to offer the £40/£10 deals anymore, because you effectively make no profit at all if you're a 20% tax payer.

kidmugsy

If you're going to be on the run from the law, FA, does it matter?

FatherAbraham

kidmugsy wrote: »

If you're going to be on the run from the law, FA, does it matter?

Easy to outrun the plods, but HMRC is really scary.

Warmest regards,
FA

bigadaj

It was always the case that revenue and customs had far more powers than the police, probably from the far off days of dealing with smugglers etc, and presumably Hmrc have inherited some of those powers.