Kufflink P2P lending chat thread

Alexland

Referrals in the main forum do break the rules - see Martin's explanation on below link:

https://forums.moneysavingexpert.com/showthread.html?t=103393

However you are fine to Edit your post and remove the offending link. Edit: too late it's been deleted.

Alex

Alexland

Kuflink have spend £295k on cashback to get an additional £20m invested during 2018 - circa 1.5%

https://s3.eu-west-2.amazonaws.com/kuflink-infographics/Lending+Report+InfoGraphic.pdf

dont_use_vistaprint

What is the most you have lost to date - if anything - on Kufflink ?

Aside from Cash-backs and referrals what ROI are you getting (after fees and any losses) ?

dont_use_vistaprint

Alexland wrote: »

Kuflink have spend £295k on cashback to get an additional £20m invested during 2018 - circa 1.5%

https://s3.eu-west-2.amazonaws.com/kuflink-infographics/Lending+Report+InfoGraphic.pdf

Thats decent customer acquisition costs, Ive ran adwords campaigns with much higher CPA, Cashback is the new way

keyboardworrier

dont_use_vistaprint wrote: »

What is the most you have lost to date - if anything - on Kufflink ?

Aside from Cash-backs and referrals what ROI are you getting (after fees and any losses) ?

There has been no losses on any Kuflink loans so far, I've not been involved in any defaulted loans (If anyone else has been I'd be interested to know how they were handled) . At the moment it seems like a good solid platform

Alexland

dont_use_vistaprint wrote: »

Thats decent customer acquisition costs, Ive ran adwords campaigns with much higher CPA, Cashback is the new way

Yes I was surprised how little they spent to get those inflows. Time will tell how many are sticky or how many (like ourselves) will withdraw after 12 months.

Alex.

bxboards

bluenun wrote: »

I invested with Kuflink last May and have a question regarding tax.
I understand I get £1000 of banking interest tax free per year.

Does the £100 cashback from Kuflink need to be included as interest and also the £75 I received for following a referral link?

Any referral payments (commission) are taxable. You cannot include them in your Personal tax free interest allowance as its not interest.

Cashback for signing up is treated as a discount and is not taxable.

A few people have claimed commission payments are not taxable - this is wrong and wishful thinking (or just blatant tax dodging if I was being less charitable!) - HRMC or your local tax office, will confirm. Some people have had wrong advice by calling the referral commission 'cashback' previously when asking HRMC about this.

Kufllink will also have declare any commission payments + interest to HRMC on the next tax statement which you'll get around May 2019.

Nardge

Cashback (a discount or partial refund applied to a purchase) is not taxable, and not included in the PSA

Referee referral bonuses are not taxable (are viewed as cashback), and also not included in the PSA.

Referrer referral bonuses (treated as an 'annual payment' or 'other income' in most cases), are taxable,
though again are not included in the PSA

In your case therefore, neither appear taxable (you were the referee), and neither are part of your £1000 PSA.

With Kind Regards

bxboards

Nardge wrote: »

Referee referral bonuses are not taxable (are viewed as cashback), and also not included in the PSA.


With Kind Regards[/FONT]

That is incorrect - sites such as MoneySavingExpert, Quidco, Topcashback or even a door to door seller who tried to get you to sign up for a charity (a 'chugger') or someone selling Tupperware all pay tax on commission from a referral.

It's income, not cashback.

I was doing Kuflink referrals when they started the scheme back in early 2018 and have a tax statement for 2017-2018 which shows this is reported to HRMC (correctly) as taxable income.

I would advise anyone to get your own tax advice not rely on forum posts (from anyone) if in doubt.

I'd love my referrals to be tax free as I started the referral thread but I confirmed (several times!) they are taxable.

Nardge

bxboards wrote: »

That is incorrect - sites such as MoneySavingExpert, Quidco, Topcashback or even a door to door seller who tried to get you to sign up for a charity (a 'chugger') or someone selling Tupperware all pay tax on commission from a referral.

It's income, not cashback.

I was doing Kuflink referrals when they started the scheme back in early 2018 and have a tax statement for 2017-2018 which shows this is reported to HRMC (correctly) as taxable income.

I would advise anyone to get your own tax advice not rely on forum posts (from anyone) if in doubt.

I'd love my referrals to be tax free as I started the referral thread but I confirmed (several times!) they are taxable.

Perhaps 'viewed' wasn't the right word, 'perceived as' may have been better... Ultimately I was going off my interpretation of what an equally authoritative person had relayed to me in answer to essentially the very same question. It is my understanding that an individual does not pay tax on the Referee Referral, and it is essentially Cashback. As described previously too, the Referrer Referral (which is what you appear to discuss and to actively harvest), is something else.

Certainly tax advice from HMRC or a Financial Adviser might be ideal, though receiving the correct answer (especially with the former) will assume knowing what to ask and how to ask it, as you have correctly stated.

I think many people would appreciate a clear-cut flow diagram or similar for the above.
Perhaps (if as you imply, my interpretation is mistaken) you could supply us with the same?

With Kind regards