james21
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Post by james21 on Apr 6, 2018 9:29:00 GMT
Interest £250
Defaults £1600
22% of investments defaulted mostly Bollington
Gutted
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ptr120
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Post by ptr120 on Apr 6, 2018 9:53:05 GMT
Total interest earned: +/- £2,000
Total cashback earned: +/- £40
Defaults and Recoveries
New defaults: +/- £7,100.00
Capital recovered: +/- £400.00
Even profits on other platforms don't make up for the loss
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tarq
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Post by tarq on Apr 6, 2018 10:14:27 GMT
Is it essential to put down the defaults?
I understand tax relief is given, but I'm hopeful to get 'something' back eventually. Thought then put it down as a loss, or maybe not.
I'm expecting to pay a lot of tax next year, so don't want to add to the burden, by reducing this year.
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nush
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Post by nush on Apr 6, 2018 10:15:23 GMT
are those defaults recoverable or are they losses
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archie
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Post by archie on Apr 6, 2018 10:16:40 GMT
It's unfortunate that none of the property defaults recovered within the tax year.
I suspect most lenders will have bad results.
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hazellend
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Post by hazellend on Apr 6, 2018 10:19:44 GMT
are those defaults recoverable or are they losses I think you can claim them all for last tax year but then pay tax on any recoveries in future years. I will probably just claim to keep things simple and avoid having to keep a detailed track of things. I have 11k of “losses” so that is a lot of tax relief, and I expect my earnings to be lower in future years so double win (/loss).
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archie
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Post by archie on Apr 6, 2018 10:21:00 GMT
Is it essential to put down the defaults? I understand tax relief is given, but I'm hopeful to get 'something' back eventually. Thought then put it down as a loss, or maybe not. I'm expecting to pay a lot of tax next year, so don't want to add to the burden, by reducing this year. It's your choice whether to offset the defaults. More information here.
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archie
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Post by archie on Apr 6, 2018 10:37:32 GMT
Looks like I’m going to have more bad debt than interest over all my platforms this year. Far too greedy I was. Me too but I'll probably be greedy again this year. 
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hazellend
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Post by hazellend on Apr 6, 2018 11:02:24 GMT
Looks like I’m going to have more bad debt than interest over all my platforms this year. Far too greedy I was. Me too but I'll probably be greedy again this year. Same with shares, losing money just makes me want more
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Post by eascogo on Apr 6, 2018 11:31:36 GMT
Total interest earned: +/- £2,000 Total cashback earned: +/- £40 Defaults and Recoveries New defaults: +/- £7,100.00 Capital recovered: +/- £400.00 Even profits on other platforms don't make up for the loss Poor results indeed with your losses (7100-400) so far greater than 3x the interest earned. But surely hope is that future recoveries will tip the balance to give a positive return. My MT stats for this year are even worse with 5-digit losses 6x the interest earned.
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amwinv
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Post by amwinv on Apr 6, 2018 12:22:18 GMT
Merely meaning to be constructive, so apologies in advance if this reads wrong, but I wonder if this should be seen as a harsh lesson to make some of you look at/reassess your diversification a bit better? OP had almost a quarter of their entire MT investments in Bollington if I read that right? All those eggs in one precarious basket? I'm pretty small fry (approx 10g invested on MT) so it's probably way easier for me to diversify than a lot of you with hefty sums, but I think I have managed to spread enough that I could probably completely lose 100% on 3-5 properties and still about break even. Also, we all hope MT can pull some decent recoveries out the bag, so don't panic just yet. Dont see your defaults as a total loss.... Yet  |
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copacetic
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Post by copacetic on Apr 6, 2018 12:23:39 GMT
While your rate of return may look bad considering defaults, bear in mind these are not losses. It's acutally a pretty favourable attitude HMRC has. You can take these defaults that are in legal recovery and subtract them from your p2p income across all your platforms* so if you earned £1000 on ratesetter and £1000 on MT and had £2000 defaults you'd pay no tax this year, even if it all recovers in a week from now.
*usual disclaimer - I'm not an accountant so don't consider this tax advice - check for yourself.
Edit: what may be concerning is the press getting hold of people reporting that their 'losses' (even if they are only tax losses) are higher than their earnings for much of the sector. This could lead to a lot of negative publicity for p2p which could spell trouble for platforms struggling to attract funds.
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hazellend
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Post by hazellend on Apr 6, 2018 13:33:36 GMT
While your rate of return may look bad considering defaults, bear in mind these are not losses. It's acutally a pretty favourable attitude HMRC has. You can take these defaults that are in legal recovery and subtract them from your p2p income across all your platforms* so if you earned £1000 on ratesetter and £1000 on MT and had £2000 defaults you'd pay no tax this year, even if it all recovers in a week from now. *usual disclaimer - I'm not an accountant so don't consider this tax advice - check for yourself. Edit: what may be concerning is the press getting hold of people reporting that their 'losses' (even if they are only tax losses) are higher than their earnings for much of the sector. This could lead to a lot of negative publicity for p2p which could spell trouble for platforms struggling to attract funds. It is very favourable tax treatment, I think designed to encourage asset backed P2P lending for similar reasons gov wants to encourage EIS/SEIS/VCT. A couple of years ago you couldn't offset losses. Also, the starting rate for savings means that a non earner can now get up to 17,500 pounds per year tax free from P2P, so if you have 140k diversified and with a bit of good luck and DD, you could pretty much live off it (not recommended!).
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Post by richardb67 on Apr 6, 2018 14:44:48 GMT
hmm, you just made me look at my tax statement
Interest £1020
new defaults £987
Capital recovered £166
l currently have defaulted loans = £821 which ties up with above.
The defaults only look to be a partial loss so I'm ok with that from a returns perspective, it will probably end up something like 8-10% pa
But the recovery was the Lambo which defaulted in Sept and was recovered in full a few weeks later. So why is the recovery mentioned if it was all within the same reporting period, is there a tax reason ? I'd prefer a net figure rather than two gross or at least a line stating "current defaults at end of period = £xx", What am I missing :-)
R
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SteveT
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Post by SteveT on Apr 6, 2018 15:02:38 GMT
hmm, you just made me look at my tax statement Interest £1020 new defaults £987 Capital recovered £166 l currently have defaulted loans = £821 which ties up with above. The defaults only look to be a partial loss so I'm ok with that from a returns perspective, it will probably end up something like 8-10% pa But the recovery was the Lambo which defaulted in Sept and was recovered in full a few weeks later. So why is the recovery mentioned if it was all within the same reporting period, is there a tax reason ? I'd prefer a net figure rather than two gross or at least a line stating "current defaults at end of period = £xx", What am I missing :-) R Take one away from the other and you have the net figure. "New defaults" = sum of all loans defaulted in the year. "Capital recovered" = sum of all capital recovered in the year. So a loan that was both defaulted and recovered in the same year will appear in both.
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