Lendy and FS tax return information.

My experience dates back to the demise of Collateral and has expanded to include SS/Ly and (will do) now to include FS. My accountants handle both my personal and my business accounts and are were aware of the P2P activities in both capacities having seen income in earlier years.  Personal was straight forward enough (in my situation), but the business side of things warranted some consideration.

The suggested and agreed approach was to provide a schedule of outstanding loans, whether defaulted or not and forecast the amounts of interest earned / accrued at the company y/e dates.  A provision was then made in the accounts as though the monies were expected to be received; with adjustments in future returns to reflect actual payments received and/or sums written off.

It's acknowledged that the reality is likely to be that sums written off will, as you say, eventually(!) exceed the amount of interest 'earned/accrued' and provisioned for, but this approach suited me and my financial position.  My accountants suggested that if I did it (broadly speaking) 'the other way around' - ie declared everything as lost and then report what sums were eventually returned - the possibility of HMRC making enquiries would increase and any gains from advantageous tax positioning would be eroded by increased accountancy fees as they responded to those enquiries.

No doubt there are several ways to skin this particular cat depending on your circumstances, the amounts involved and - to some extent - risk appetite for HMRC to start asking questions, but once you explain the situation to your accountants, they should be asking you for the information they need, although I suggest a good conversation starter would include the breakdown of loans, sums invested and interest earned / accrued up to the relevant accounting date.

Hope that makes sense.

bracknellboy samford71 DFL001 & 2 are model 1 loans so not eligible for relief as neither are A36h. Although there are SSSH charges, these are third party charges AIUI so I believe not valid for loss relief claims. DFL004 & DFL012 both claimable 2018-19

bracknellboy My golden rules for complex tax returns: 1) have a good, simple story for the numbers filed, and 2) give the story with the tax return i.e. provide all reasoning up front. My P2P submissions have never matched platform statements so I file an A4 or so list of notes to substantiate my P2P figures, referencing the previous year's notes as required. I drill down per platform and may e.g. point out that platform X does not give accurate default figures as evidenced by history Y and so I submit my own figures for that platform based on event Z. 

Personally, I think you've got a decent enough story to justify a retrospective filing, however to submit it as a valid change without raising eyebrows of an HMRC employee - who may be unaware of unfolding shenanigans of the P2P industry -, I'd guess your argument would have to be that the platform figures you had been originally given were false (deliberate or professional incompetence) and that this only became apparent to you now, because of <add your evidence here>, hence resubmitting accurate figures for <previous year>.

Not in Lendy, but for FS I think there's more than enough evidence to build a case on this one!

Good luck and report back!

As we (1) enter a new tax year and (2) see covid wrecking any small chance there ever was of seeing any value from the properties, is it now reasonable to put the whole lendy loan book (apart from the early loans to lendy itself) down as a loss against other p2p income for 19/20? Then in the event anything is realised tax can be paid in a subsequent year. Can anyone think of a notable excpetion where that would be unreasonable?