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tax
Jul 24, 2016 11:55:43 GMT
via mobile
Post by celica04 on Jul 24, 2016 11:55:43 GMT
just a quick question to save a long phone call.i am a paye tax payer how do i pay the tax on interest earned. do i just register with hmrc then fill a self assessment out. Thanks
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Post by GSV3MIaC on Jul 24, 2016 12:42:03 GMT
If you are going to exceed the saving allowance for whatever tax bracket you are in, then yes, that is the easiest way. If you got (untaxed, P2P) interest last year (when there was no tax free allowance for it) you'd probably be doing a self assessment return anyway (BS/Bank accounts with tax deducted at source kept most people from having to, but P2P was an exception).
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guff
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Post by guff on Jul 24, 2016 13:37:53 GMT
Last year I sent a copy of my P2P tax statement and a cheque with a covering letter. Cheque cashed and no request for SA.
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ilmoro
Member of DD Central
'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 Jul 24, 2016 13:52:03 GMT
Ive always just sent a covering letter plus statements and HMRC just adjust my tax code to recover tax owed the following year.
No hint of self assessment.
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Post by GSV3MIaC on Jul 24, 2016 14:01:11 GMT
I guess I must just be more complicated. 8>.
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tax
Jul 25, 2016 6:07:14 GMT
Post by yorkman on Jul 25, 2016 6:07:14 GMT
Ive always just sent a covering letter plus statements and HMRC just adjust my tax code to recover tax owed the following year. No hint of self assessment. Ditto. This year though my interest will be less than £1000 so I won't bother.
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tomtom
Member of DD Central
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tax
Jul 25, 2016 6:49:08 GMT
Post by tomtom on Jul 25, 2016 6:49:08 GMT
Am I correct in thinking that with this current tax year, you are able to off set any bad loans which have been declared on any site against interest received.?
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adrianc
Member of DD Central
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tax
Jul 25, 2016 7:14:47 GMT
Post by adrianc on Jul 25, 2016 7:14:47 GMT
Am I correct in thinking that with this current tax year, you are able to off set any bad loans which have been declared on any site against interest received.? Only when the platform formally gives up on any hope of recovering a single penny more.
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tax
Jul 25, 2016 7:43:04 GMT
Post by propman on Jul 25, 2016 7:43:04 GMT
Am I correct in thinking that with this current tax year, you are able to off set any bad loans which have been declared on any site against interest received.? Only when the platform formally gives up on any hope of recovering a single penny more. Also, only for bad debts declared as such by the platform in that year (or previously claimed but above interest earned so carried forward).
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james
Posts: 2,205
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tax
Jul 26, 2016 22:08:20 GMT
Post by james on Jul 26, 2016 22:08:20 GMT
Am I correct in thinking that with this current tax year, you are able to off set any bad loans which have been declared on any site against interest received.? For tax years from 2015-16 (yes, last year) onwards you can do that. The loan must be judged to be "irrecoverable" which is not the same as "defaulted". Commencement of legal proceedings would be one possible trigger for irrecoverable that HMRC has mentioned in their guidance. If the platform doesn't do these evaluations you can do it yourself. If doing it yourself you could perhaps use defaulted plus 3 or 12 or whatever seems reasonable months even if no legal action has been commenced, perhaps because it is uneconomic. Just be consistent and note down your reasoning in case HMRC asks. The answers saying the platform has to do it are simply wrong, there is no such requirement, though of course UK-based platforms normally will, though perhaps not initially. But not all eligible 36H platforms are UK-based. If the platform does do it you'd need a really good reason to do anything else and I suggest not trying. After you have deducted the outstanding capital any future capital recoveries are treated as interest and need to be reported as such. This gets HMRC back their loss if the loan does have some recovery.
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