Reporting P2P income in online Self-Assessment

Bricks

Am I right in understanding that if the "Total eligible bad debt in period" indicated on my P2P tax statement is greater than the "Income payments made to you", then I enter a figure of zero in the "Gross amount before tax" box on the self-assessment form (in the "Interest from gilt-edged and other..." section)?

I don't put a negative value in there, I assume?

And that's all I need to tell them - I don't need to tell them the amount of interest, and the amount of bad debt - just the figure obtained by subtracting the latter from the former?

NottinghamKnight

Bricks said:

Am I right in understanding that if the "Total eligible bad debt in period" indicated on my P2P tax statement is greater than the "Income payments made to you", then I enter a figure of zero in the "Gross amount before tax" box on the self-assessment form (in the "Interest from gilt-edged and other..." section)?

I don't put a negative value in there, I assume?

And that's all I need to tell them - I don't need to tell them the amount of interest, and the amount of bad debt - just the figure obtained by subtracting the latter from the former?

Yes but I believe you can detail losses on the notes which might be useful for future records and be transparent in offsetting against future profits, if there are any. 

masonic

That is correct, enter zero and there is nothing specific you need to do to carry the excess loss forward. It is important that you retain your tax statements and calculations so that you can produce them if there is ever a need. As NK says, you can use the notes section to record this information (I don't personally).

itm2

Sorry to extend Bricks question from above, but I'm still a little unclear.....could someone please confirm the situation re. how/whether to declare net P2P losses on the online Self-Assessment pages? (i.e. where the interest paid is less than net losses from bad debt).
1. If there was no net gain then do I actually need to declare anything at all as "Other UK Income"?
2. If so, do I need to attach an SA101?
3. Which sections/boxes on the SA101 should I use to enter the net interest paid and total bad debt?
4. How exactly do I attach it - e.g. do I manually download and complete the form, and add it as an attachment, or is there a way of triggering online completion of SA101 from within the Self Assessment online process?

masonic

itm2 said:

Sorry to extend Bricks question from above, but I'm still a little unclear.....could someone please confirm the situation re. how/whether to declare net P2P losses on the online Self-Assessment pages? (i.e. where the interest paid is less than net losses from bad debt).
1. If there was no net gain then do I actually need to declare anything at all as "Other UK Income"?
2. If so, do I need to attach an SA101?
3. Which sections/boxes on the SA101 should I use to enter the net interest paid and total bad debt?
4. How exactly do I attach it - e.g. do I manually download and complete the form, and add it as an attachment, or is there a way of triggering online completion of SA101 from within the Self Assessment online process?

1: No; 2: No; 3: Nowhere; 4:You don't need to

You should keep your own records of bad debt relief claimed/used, and provide these if it is ever queried. Some have suggested recording in the notes section of the return, but I have never done so.

NottinghamKnight

I've recorded in the notes section as it seems t be easy and clear and is a useful reference for any future queries and returns.

Bricks

So... in contrast to last year, I don't have a net loss on my P2P account. Can i check I'm doing things properly:

- The amount I need to pay tax on is (using the descriptions used on a Funding Circle statement) is:

"Interest paid out"

minus

"total eligible bad debt in period"

plus

"recoveries on principle defaulted in prior periods"

and I don't deduct "funding circle service fee"

- Then I put that amount into the "Interest from gilt edged and other UK securities, deeply discounted securities and accrued income profits" section on the online form

- Then I manually fill out the "additional information" form as well, and attach it with my online application?

I don't really understand the purpose of the "additional information" form because it doesn't seem to provide any extra information compared to what I put in the main form, for example it doesn't ask me to break down the amount of bad debt I am deducting.

masonic

Bricks said:

So... in contrast to last year, I don't have a net loss on my P2P account. Can i check I'm doing things properly:

- The amount I need to pay tax on is (using the descriptions used on a Funding Circle statement) is:

"Interest paid out"

minus

"total eligible bad debt in period"

plus

"recoveries on principle defaulted in prior periods"

and I don't deduct "funding circle service fee"

- Then I put that amount into the "Interest from gilt edged and other UK securities, deeply discounted securities and accrued income profits" section on the online form

- Then I manually fill out the "additional information" form as well, and attach it with my online application?

I don't really understand the purpose of the "additional information" form because it doesn't seem to provide any extra information compared to what I put in the main form, for example it doesn't ask me to break down the amount of bad debt I am deducting.

I've never used an additional information form. However, I have added more detailed information in the general notes section. Your calculation looks correct. Of course you are also entitled to deduct any bad debt from previous years that you have carried forward.

Bricks

masonic said:

Bricks said:

So... in contrast to last year, I don't have a net loss on my P2P account. Can i check I'm doing things properly:

- The amount I need to pay tax on is (using the descriptions used on a Funding Circle statement) is:

"Interest paid out"

minus

"total eligible bad debt in period"

plus

"recoveries on principle defaulted in prior periods"

and I don't deduct "funding circle service fee"

- Then I put that amount into the "Interest from gilt edged and other UK securities, deeply discounted securities and accrued income profits" section on the online form

- Then I manually fill out the "additional information" form as well, and attach it with my online application?

I don't really understand the purpose of the "additional information" form because it doesn't seem to provide any extra information compared to what I put in the main form, for example it doesn't ask me to break down the amount of bad debt I am deducting.

I've never used an additional information form. However, I have added more detailed information in the general notes section. Your calculation looks correct. Of course you are also entitled to deduct any bad debt from previous years that you have carried forward.

Ok, thanks. So the "additional information" form isn't in fact necessary.

Not sure where I got that impression from in the first place actually.