|
Post by slumberingaccountant on Oct 21, 2017 16:32:33 GMT
If you follow this you will end up at:
"7 Did you have any other income you need to report?
You need to report:
any income of £2,500 or more that hasn’t been taxed, such as tips or commission
income from savings and investments of £10,000 or more before tax
income from dividends of £10,000 or more before tax"
P2P interest is classed as Other UK income according to this and therefore if £2.5k or more you should register for SA. The quote above is very confusing because I initially thought I'd have to do a SA only if my P2P interest was at least £10k (I wish!).
Lots of discussion every April over on the General P2X board
Disclaimer - this is not advice!
I Disagree. The believe that the HMRC advice is that peer to peer income is treated like interest, and subject to the £1000/500/0 quoted previously but also £5000 for low/non tax payers ( or those who have limited their income such that it is). Not sure why HMRC are quoting 10k as above, but maybe its just to get the relatively few people who have interest at that level to return it as a double check - even though they get this from the various banks etc etc anyway ( and im assuming that also includes peer to peer lenders). Ive got peer to peer income of about 6k, i dont pay tax and dont do any returns. The Discussion thread belowseems to sort of confirm my thoughts(The peer to peer interest guidance on the HMRC website is within 'savings and interest' but there is other HMRC guidance which says something different ... p2pindependentforum.com/thread/10464/self-assessment-tax-returns
|
|
duck
Member of DD Central
Posts: 2,586
Likes: 5,753
|
Post by duck on Oct 21, 2017 17:20:37 GMT
Personally I take the better safe than sorry approach.
Last year my wife submitted a paper return to say her only income was from P2P (£9.5K entered under other income) and HMRC sent a letter back saying 'with the information we have you will not need to submit a return in future tax years unless your circumstances change. To me this suggests that whilst the income is entered as other income the £10K limit is the one that they look at wrt P2P.
This year I managed to push more income in her direction and she earned £16.8K (17K allowance). In spite of the letter she will be submitting a return online before the deadline. She will not be claiming any relief that is available to avoid a cash dump (which will show on the platforms declaration) when any recoveries are made. To do so would be of no benefit for 16/17 and would lower the amount of interest that she could earn in 17/18.
The point I am making is that no matter how many times you read the HMRC website it is never 100% clear. Submit the information that you think they may require (as is your duty) and you can sleep more soundly at night.
|
|
ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 10,877
Likes: 11,102
|
Post by ilmoro on Oct 21, 2017 22:59:17 GMT
Unfortunately my specific advice from HMRC was the complete opposite. Response to the enquiry do I need to SA if I earn £2500+ from P2P was an emphatic yes and they registered me accordingly
|
|
duck
Member of DD Central
Posts: 2,586
Likes: 5,753
|
Post by duck on Oct 22, 2017 4:15:49 GMT
Unfortunately my specific advice from HMRC was the complete opposite. Response to the enquiry do I need to SA if I earn £2500+ from P2P was an emphatic yes and they registered me accordingly Perfect response ilmoro. It just shows that HMRC are all over the place with this question as is the website. We now have two directly opposing responses from HMRC which is exactly why my wife will be submitting a return. My gut reaction of 'if in doubt submit a return' seems to be by far the safest. As a side note I remember a long correspondence that I had with HMRC pointing out that their website was wrong regarding an aspect of VAT on flat rate schemes. They maintained it was correct. I responded with the tribunal cases that they had lost citing the relevant sections. It took the best part of 3 years for the error to be corrected.
|
|
SteveT
Member of DD Central
Posts: 6,873
Likes: 7,918
|
Post by SteveT on Oct 22, 2017 4:42:56 GMT
Unfortunately my specific advice from HMRC was the complete opposite. Response to the enquiry do I need to SA if I earn £2500+ from P2P was an emphatic yes and they registered me accordingly My father asked them the same question (having roughly £8k of untaxed P2P interest) and was given the same answer. The actual process of completing the online SA form he found simple enough. The painful bit was getting hold of the Gov.Gateway and UTR codes needed to access it. He now has a 2016/17 tax bill to pay in January plus a further payment to make “on account” for 2017/18
|
|
zlb
Member of DD Central
Posts: 1,413
Likes: 331
|
Post by zlb on Oct 22, 2017 9:06:37 GMT
The info they give seems to contradict what they publish elsewhere, so agree with taking safest option to declare 25p just in case. Including what has been in the press re budget changes, it appears as if each allowance should be treated as separate, e.g. £1000 from savings, £1000 from ebay etc., but hmrc appear to be lumping it all together based on clipping from Dan1 and others.
Another example is re savings interest for low earners they state very clearly on their site that anyone earning <£16000(ish) can earn any amount of savings interest. This isn't true, for example. When quoted their own website on the online chat with the URL, the respondent doesn't seem to be able to answer.
|
|
p2pmark
Member of DD Central
Posts: 217
Likes: 186
|
Post by p2pmark on Nov 10, 2017 7:26:46 GMT
HMRC have online chat?
|
|
elsee
Member of DD Central
Retired:D
Posts: 196
Likes: 110
|
Post by elsee on Nov 10, 2017 8:05:57 GMT
It depends on your other income etc. My husband just sends a letter and I fill in the details on my digital tax account. This year they said he had to SA because he went over £5000 and presumably they wanted to cover themselves by seeing if they could collect tax due through his pension or had to ask for payment (and future payments on account) I'm a nontaxpayer at the moment.
|
|
|
Post by Deleted on Nov 10, 2017 9:18:07 GMT
If in doubt, I suggest ring up HMRC. They are very nice people, they answer the phone eventually and on a number of occassions they have saved me money by getting me to put the right numbers in the right boxes.
I would also recommend the online form filling which seems to be fine though the actually human interface is a bit rough.
|
|
duck
Member of DD Central
Posts: 2,586
Likes: 5,753
|
Post by duck on Nov 10, 2017 10:37:03 GMT
I would also recommend the online form filling which seems to be fine though the actually human interface is a bit rough. Fine understatement! I was completing my wife's assessment last week. Nothing to fill in on certain boxes so left blank. ERROR you must enter a figure or zero. OK enter zero .... which is then 'corrected' to 0.00 Next page nothing to declare so enter 0.00 ERROR you must enter a value or zero. So enter zero which is then 'corrected' to 0.00 which then generated ERROR you must enter a value or leave blank. This went on throughout the process with me guessing 0?, 0.00? or leave blank something that I invariably guessed wrongly That said, the end result was that my calculations and the assessment of tax due tied up to the 1p. A note of 'interest' my wife has been giving to charity for many years and has only in the last 2 years become a non tax payer ...... she didn't cancel 'gift aid' and has therefore been presented with a bill for the 'gift aid' tax relief that has been paid. Worth checking if you are dropping out of tax and don't fancy getting a bill.
|
|