spiral
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Post by spiral on Feb 28, 2018 8:33:13 GMT
How does this offsetting tax work if you're a non tax payer in the year that a loan is deemed irrecoverable but a tax payer in a year in which monies are recovered? I assume that you won't have to pay tax on the capital returned as you would if you had offset it in the first place. Edit: Just found my own answer. If relief has been claimed because the principal of a loan has been treated as becoming irrecoverable, but the lender subsequently recovers any or all of the principal of the loan, then the lender should treat any amount received as peer to peer (P2P) interest received at the time of the recovery.
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SteveT
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Post by SteveT on Feb 28, 2018 8:38:21 GMT
How does this offsetting tax work if you're a non tax payer in the year that a loan is deemed irrecoverable but a tax payer in a year in which monies are recovered? I assume that you won't have to pay tax on the capital returned as you would if you had offset it in the first place. Correct. If you’ve not claimed a tax reduction for an irrecoverable loan then you’ve no tax to repay on its recovery
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spiral
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Post by spiral on Feb 28, 2018 8:41:41 GMT
Correct. If you’ve not claimed a tax reduction for an irrecoverable loan then you’ve no tax to repay on its recovery Thanks, I just read through the document link you added a couple of days ago and found the paragraph I was looking for. I suppose it just means needing to keep tabs on what is going on as what a non taxpayer to taxpayer would report in those years would differ from what the platforms report.
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Post by GSV3MIaC on Feb 28, 2018 10:00:16 GMT
How does this offsetting tax work if you're a non tax payer in the year that a loan is deemed irrecoverable but a tax payer in a year in which monies are recovered? I assume that you won't have to pay tax on the capital returned as you would if you had offset it in the first place. Correct. If you’ve not claimed a tax reduction for an irrecoverable loan then you’ve no tax to repay on its recovery You may have tax to pay on any interest recovered, AIUI .. (unless you claimed that as part of the loss, previously, which is probably a no-no).
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ptr120
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Post by ptr120 on Mar 21, 2018 11:23:02 GMT
Hi, Yes we are looking into the best way to report on it in the tax statements and we will do this before the end of the tax year. All input from lenders has been useful. It is not something we have had to consider previously, but we will give it our attention and we understand the importance of the issue for UK tax payers. Kind regards Sophie Hi SophieThingas the end of the tax year is fast approaching (and the Easter holiday) it would be helpful to understand if updated tax statements will be available at the start of the new tax year?
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hazellend
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Post by hazellend on Mar 21, 2018 11:47:25 GMT
Are you aiming to be the earliest tax return completed in the U.K?
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toast
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Post by toast on Mar 21, 2018 12:09:57 GMT
Are you aiming to be the earliest tax return completed in the U.K? If you're due a significant refund from HMRC then it's totally understandable to want to do it as early as possible. I'd love to be the earliest tax return completed but always end up waiting on some piece of information or other (P11D grumble, grumble).
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ptr120
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Post by ptr120 on Mar 21, 2018 12:12:01 GMT
Are you aiming to be the earliest tax return completed in the U.K? Ideally, yes.
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hazellend
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Post by hazellend on Mar 21, 2018 12:18:12 GMT
Are you aiming to be the earliest tax return completed in the U.K? Ideally, yes. To be fair if I was due a refund I would be early too but usually I have 000s tax owed on my return
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Post by SophieThing on Mar 26, 2018 8:43:23 GMT
Hi ptr120, Sorry I thought I had confirmed this. We are working on revising the tax statement before the end of the tax year so that it includes details of defaults and recoveries. Kind regards Sophie
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archie
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Post by archie on Apr 6, 2018 8:20:39 GMT
Hi ptr120 , Sorry I thought I had confirmed this. We are working on revising the tax statement before the end of the tax year so that it includes details of defaults and recoveries. Kind regards Sophie Thanks for updating the tax statement. Ideally I'd like to be able to get a breakdown of the items included in the defaults and recoveries sections. Although it's easy to calculate now, it will be more complex in future tax years when recoveries are made. In a situation where it's only possible to partially use defaults to offset tax it'll be easier to reconcile.
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spiral
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Post by spiral on Apr 10, 2018 7:58:40 GMT
I agree with archie. This year I am a non tax payer so won't be using any of the offset but in years where recoveries are made, I may be a tax payer. Looking at the current statement you list New Defaults and Recoveries. As this is the first year with defaults it's obvious the recoveries were from this year but next year you may have new defaults and recoveries from both tax years. I would like to know at a minimum for which year the recoveries made were declared a default but ideally, the specific loans listed under both default and recoveries sections.
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averageguy
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Post by averageguy on Apr 10, 2018 8:39:26 GMT
I'd also like these details .....are you allowed to use some of the defaults this year and some next (if they are still defaulted)
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archie
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Post by archie on Apr 10, 2018 8:52:16 GMT
For current defaults the easiest way is to print out the 'Default Loans' page as it will show your invested amounts.
This should equal your New Defaults - Capital Recovered total.
This is currently true but will change when recoveries/ new defaults arrive.
We need to be able to get the breakdown of both figures in any tax year.
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boundah
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Post by boundah on Apr 10, 2018 17:03:30 GMT
My MT 'new defaults' figure is higher than the interest across my 4 P2P platforms in 17-18. I'm assuming I can offset it all and so pay no tax - any differing views?
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