tomtom
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Post by tomtom on Dec 2, 2017 11:04:21 GMT
At present I am showing a loss of £4814 due to loan defaults on this board am I correct in my thinking that at the year end I am allowed to offset this loss against any interest earned from investing in P2P in this year (this would include interest earned from other P2P sites).
Tomtom
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hazellend
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Post by hazellend on Dec 2, 2017 11:29:16 GMT
I think I would report whatever moneything send to HMRC which should be clear from your tax statement. The loans are at least partly recoverable at the moment.
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markb
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Post by markb on Dec 2, 2017 11:36:45 GMT
Broadly speaking, no [to the OP's question] - the HMRC test is stronger than the borrower simply being in default, there has to be a legal recovery effort underway (e.g. administrators, receivers, court case).
For FY 15/16, we had to figure out the loans and amounts ourselves, but these days each platform is meant to give us this info on the annual tax statement. Admittedly some of them (not MT) still aren't doing so, or appear to be mis-applying the rules - in which case you might want to use the correct figures...and then enjoy explaining to HMRC why your tax return differs from the figures that the platforms supplied to HMRC!
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Post by Deleted on Dec 3, 2017 11:56:43 GMT
It does depend a little on how much time you want to spend on your tax returns, just using their provided figures frees up time for life  |
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blueninja
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Post by blueninja on Dec 3, 2017 12:11:47 GMT
Also remember to add back any recoveries as income. This can be a bit of a pain as recoveries can go on for years.
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kermie
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Post by kermie on Dec 3, 2017 15:20:20 GMT
Anyone know which was the first loan on MT to face recovery action (i.e. be potentially deemed 'irrecoverable' for tax purposes)?
I don't recall any prior to 6th April 2017 - although may just be my luck to have missed them.
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hazellend
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Post by hazellend on Dec 3, 2017 16:56:50 GMT
Anyone know which was the first loan on MT to face recovery action (i.e. be potentially deemed 'irrecoverable' for tax purposes)? I don't recall any prior to 6th April 2017 - although may just be my luck to have missed them. None so far
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Dec 3, 2017 23:03:50 GMT
Anyone know which was the first loan on MT to face recovery action (i.e. be potentially deemed 'irrecoverable' for tax purposes)? I don't recall any prior to 6th April 2017 - although may just be my luck to have missed them. None prior to this tax year, currently three that can be treated as irrecoverable as they are in legal recovery ... Birkenhead, Lytham, Prestbury ... so will be claimable for 17-18.
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fasty
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Post by fasty on Dec 3, 2017 23:16:55 GMT
Anyone know which was the first loan on MT to face recovery action (i.e. be potentially deemed 'irrecoverable' for tax purposes)? I don't recall any prior to 6th April 2017 - although may just be my luck to have missed them. None prior to this tax year, currently three that can be treated as irrecoverable as they are in legal recovery ... Birkenhead, Lytham, Prestbury ... so will be claimable for 17-18. I'm concerned about this. If I download a tax statement for the last full year (i.e. up until recent days) from MT, there is no mention of any defaults or losses etc. If this is the same data that MT are submitting to HMRC, then if I try to offset losses for Prestbury etc my submission will look very wrong.
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archie
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Post by archie on Dec 4, 2017 5:50:01 GMT
None prior to this tax year, currently three that can be treated as irrecoverable as they are in legal recovery ... Birkenhead, Lytham, Prestbury ... so will be claimable for 17-18. I'm concerned about this. If I download a tax statement for the last full year (i.e. up until recent days) from MT, there is no mention of any defaults or losses etc. If this is the same data that MT are submitting to HMRC, then if I try to offset losses for Prestbury etc my submission will look very wrong. The tax statements need defaults and recoveries added, split by current and previous years. Claiming is optional though so your figures may still differ from figures MT submit to HMRC. You would be able to show your calculations with a detailed tax statement.
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hazellend
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Post by hazellend on Dec 4, 2017 6:29:50 GMT
Anyone know which was the first loan on MT to face recovery action (i.e. be potentially deemed 'irrecoverable' for tax purposes)? I don't recall any prior to 6th April 2017 - although may just be my luck to have missed them. None prior to this tax year, currently three that can be treated as irrecoverable as they are in legal recovery ... Birkenhead, Lytham, Prestbury ... so will be claimable for 17-18. Is an entire loan deemed irrecoverable by HMRC as soon as it is in default, even with a first charge asset? If so, can you carry forward an “irrecoverable” loss into another tax year or does it need to be claimed/repaid in tax year defaulted/repaid?
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ptr120
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Post by ptr120 on Dec 4, 2017 6:36:10 GMT
None prior to this tax year, currently three that can be treated as irrecoverable as they are in legal recovery ... Birkenhead, Lytham, Prestbury ... so will be claimable for 17-18. I'm concerned about this. If I download a tax statement for the last full year (i.e. up until recent days) from MT, there is no mention of any defaults or losses etc. If this is the same data that MT are submitting to HMRC, then if I try to offset losses for Prestbury etc my submission will look very wrong. It is really quite academic until the start of April next year. If a loan is fully recovered within the tax year then there are no losses to write off
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hazellend
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Post by hazellend on Dec 4, 2017 6:48:04 GMT
I'm concerned about this. If I download a tax statement for the last full year (i.e. up until recent days) from MT, there is no mention of any defaults or losses etc. If this is the same data that MT are submitting to HMRC, then if I try to offset losses for Prestbury etc my submission will look very wrong. It is really quite academic until the start of April next year. If a loan is fully recovered within the tax year then there are no losses to write off Would be useful to know the rules prior to then though. Need to go and educate myself.
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duck
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Post by duck on Dec 4, 2017 7:11:20 GMT
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ilmoro
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Post by ilmoro on Dec 5, 2017 0:34:37 GMT
None prior to this tax year, currently three that can be treated as irrecoverable as they are in legal recovery ... Birkenhead, Lytham, Prestbury ... so will be claimable for 17-18. Is an entire loan deemed irrecoverable by HMRC as soon as it is in default, even with a first charge asset? If so, can you carry forward an “irrecoverable” loss into another tax year or does it need to be claimed/repaid in tax year defaulted/repaid? Entire loan can be 'treated' as irrecoverable once it is in legal recovery which is not the same as default which could merely be a non-material covernant breach or even an agreed extension but as it past term means it is in default. You can carry forward losses however not entirely clear in the exact circumstances Certainly if your losses exceed your interest from P2P the excess can be carried forward but Im not sure if you can carry forward if you choose not to claim a loss against earned interest or if you have no tax liability on the earned interest whether you can carry forward to a year when you have a tax liability ie below tax threashold one year, above next
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