Kufflink P2P lending chat thread

Nardge

Masonic -

Following on from our previous discussion on this thread

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

Where the Referrer Referral 'reward' comes as e.g. Amazon Vouchers in lieu of Cash,
I'm assuming that such Vouchers are an instance where the Referrer referral is obviously non-taxable?

With Kind Regards

Shedman

Nardge wrote: »

Masonic -

Following on from our previous discussion on this thread

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

Where the Referrer Referral 'reward' comes as e.g. Amazon Vouchers in lieu of Cash,
I'm assuming that such Vouchers are an instance where the Referrer referral is obviously non-taxable?

With Kind Regards

Why do you think the fact that its Amazon vouchers as opposed to cash make a difference? The Amazon vouchers have a cash equivalent value - £25 Amazon voucher is still £25.

In the good old days if you got given more than 15p a day Luncheon Vouchers (I know..showing my age) then you were still taxed on the excess regardless that they were vouchers

Nardge

Shedman wrote: »

Why do you think the fact that its Amazon vouchers as opposed to cash make a difference? The Amazon vouchers have a cash equivalent value - £25 Amazon voucher is still £25.

In the good old days if you got given more than 15p a day Luncheon Vouchers (I know..showing my age) then you were still taxed on the excess regardless that they were vouchers

Hence why I was asking Masonic for his knowledge...

If vouchers, these might have been 'coded' differently as 'Cashback' or similar by the P2P or other company in relation to HMRC classification, especially since HMRC are hardly going to ask us to forward a £5 or £10 Amazon Voucher as taxation... and they can hardly ask for money in lieu...

Ultimately I'm aiming to understand all the subtleties and nuances (like you), so as to save time in future!

With Kind Regards

P.S. I have found Masonic useful, helpful, and knowledgeable. He always appears to know what he's talking about

masonic

Nardge wrote: »

Hence why I was asking Masonic for his knowledge...

Shedman is correct, if you receive vouchers instead of cash then the face value of those vouchers is treated as taxable income. In the case of more obscure benefits received in exchange for providing a service, then these too would be taxable, and the recipient would have the unpleasant job of valuing them in a way in which HMRC would accept.

usman330

Is Kufflink still a decent place to park a little cash?
Anyone want to refer me and share their referral bonus?

MallyGirl

There is a referrers thread for that - it is not allowed here

https://forums.moneysavingexpert.com/forumdisplay.php?f=42

usman330

I couldnt find the referrers thread, has it gone?

masonic

It's been deleted at least a couple of times now, so I guess MSE has something against it. There were formerly a few people offering to share at least half of their bonus (not me, I don't want the headache of working out my tax liability). They'll probably pick up on your post and get in touch.

Shedman

As its that time of year (end of tax year) I thought the response I had from Kuflink re treatment of various forms of cashback might be useful to some of you:

"Any reserve cashback is tax free (ie the cashback in lieu of interest before a reserved loan goes live).
Cashback you receive being a joining cashback/for being referred to Kuflink is tax free.
Cashback you receive for referring users to Kuflink is taxable, due to this is classed as commission."

masonic

Shedman wrote: »

"Any reserve cashback is tax free (ie the cashback in lieu of interest before a reserved loan goes live).
Cashback you receive being a joining cashback/for being referred to Kuflink is tax free.
Cashback you receive for referring users to Kuflink is taxable, due to this is classed as commission."

Very good of them to confirm it. I've known other firms say they cannot give tax advice and merely suggest that if you are unsure you should consult an accountant or tax adviser.