Query regarding Zopa's calculation of interest on savings

Sillychuckie

CheekyMikey said:

Would have been a disaster if you had actually been correct and had to pay 40% tax on 13p…you’d have had to sell the Bentley. Perhaps you should reword your rather alarmist post title?

Already sold the Bentley - chucked the sale funds into Zopa, and expect my fair interest.

It could have been far worse CheekyMikey - perhaps even as much as 40p if it rolled me into the next £1 tax bracket.
What if that additional £1 pushed me over the £100k mark, and I lost my Childcare Voucher entitlement. It could have cost me thousands. 

A point around accurate interest reporting is an important one, regardless of the figures - and none of you know the rest of my tax situation to begin to comment on the overall impact.

The original post title was fair at the time I created the post - a warning to others to double check their own 'COI' payments match their monthly totals. However, having been schooled by those who have contributed positively towards this discussion (not sure you quite make it into that category, CheekyMikey), I'm happy to change it now to something a little less 'alarmist', as you put it.
Thanks for the feedback.

SC

masonic

Remember that Zopa used to be a P2P lender. Its systems were probably designed this way intentionally to cope with apportioning loan repayments between hundreds or thousands of investors who held a small slice of each loan. It would be clearer if there were a way for customers to access the figures including the micropence, as some of their ex-competitors have done.

uptdale

The way Zopa report interest is just a nuisance.  If you record movements on your accounts to keep track (I use Moneydance), you quickly find that if you just add the interest Zopa records on each pot, you soon find that the balance on the account in your records is different from the balance on the account shown by Zopa, by a few pence.  So you keep having to record the difference (from rounding) to bring your records into line with what Zopa is showing.   I have found that the difference is always positive, and I treat as additional interest received.  Even then, I found that the total interest (including rounding adjustments) in my records does not quite equal the figure Zopa reports on the annual tax certificate (probably because I recorded some of the rounding in the wrong tax year), but the difference is too trivial for anyone to worry about.

For me it's just annoying and creates extra work.  I really do not see why Zopa cannot include the rounding adjustments as interest in the app as and when the adjustments are added to the account balance.

CheekyMikey

Sillychuckie said:

CheekyMikey said:

Would have been a disaster if you had actually been correct and had to pay 40% tax on 13p…you’d have had to sell the Bentley. Perhaps you should reword your rather alarmist post title?

Already sold the Bentley - chucked the sale funds into Zopa, and expect my fair interest.

It could have been far worse CheekyMikey - perhaps even as much as 40p if it rolled me into the next £1 tax bracket.
What if that additional £1 pushed me over the £100k mark, and I lost my Childcare Voucher entitlement. It could have cost me thousands. 

A point around accurate interest reporting is an important one, regardless of the figures - and none of you know the rest of my tax situation to begin to comment on the overall impact.

The original post title was fair at the time I created the post - a warning to others to double check their own 'COI' payments match their monthly totals. However, having been schooled by those who have contributed positively towards this discussion (not sure you quite make it into that category, CheekyMikey), I'm happy to change it now to something a little less 'alarmist', as you put it.
Thanks for the feedback.

SC

Don’t get me started on the subject of childcare vouchers for people on £99k income 😡