Investboy
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Trying to recover from P2P revolution
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Post by Investboy on Sept 21, 2016 11:03:26 GMT
fundingsecure and other Members I'm registered as Ltd company and buying parts on SM sometimes at premium. Is my tax statement uses "correct" income value (earned interests - interests/premium paid)? Or is it showing just the interests but ignores the premiums paid? If I understand it correctly LTD company pays tax on corporate gains not interests earned. So If I earned £5 of interests but I paid £4 premium for that will in my statement this transaction be treated as £1 profit or £5? If it shows "profit" then we're all good and my accountant is happy ans he can just use the generated PDF. Otherwise I'd need a full list of all my transactions with all premiums & interests paid and profit calculated separately. Which means tax statement for LTD's is useless IMHO. Thanks in advance for all the answers
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Monetus
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Post by Monetus on Sept 21, 2016 11:05:27 GMT
As another LTD investor I am also very interested in answers to these questions fundingsecure |
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Post by fundingsecure on Sept 21, 2016 11:12:18 GMT
The tax statement simply shows the interest paid and any capital lost between any two dates. It is primarily intended for individuals.
For companies / overseas investors / others the information shown in the tax report should be used in conjunction with the detailed information that is available to download in "My Activity!, which lists all of the information needed.
FundingSecure
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stevio
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Post by stevio on Sept 21, 2016 11:20:28 GMT
SteveT gave a good explanation on another thread how to work this out, maybe he can comment here
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Investboy
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Trying to recover from P2P revolution
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Post by Investboy on Sept 21, 2016 11:31:26 GMT
The tax statement simply shows the interest paid and any capital lost between any two dates. It is primarily intended for individuals. For companies / overseas investors / others the information shown in the tax report should be used in conjunction with the detailed information that is available to download in "My Activity!, which lists all of the information needed. FundingSecure Hmm... that is no good... So it looks this is not a "tax statement" but rather "interests statement". Same for individuals not so same for LTDs. Could we at least have a "Premiums paid" section added to the tax statement? Then the calculation should be easy as: profit = interests - premiums. Or even making some changes to that report for LTD companies so the profit is clear. My accountant is not quite knowledgeable about P2P and I guess he based his numbers on the one and only official tax statement that gives number that is not fully accurate. And it looks I'll pay a bit more tax that I should for last year. Would also appreciate a link to a post/thread where it was explained. (I promise to like it  ) Edit: I just looked at the Excel export of "My Activity' And there is no separate column called "Premium" It is only in description:
"Purchased £100.00 of investment in loan X <date> 103.29"
I don't see an easy way of extracting premiums from something like this. I guess adding a separate column would be better and from that it is just small step to having cumulative total on "tax statement". Pretty please.
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SteveT
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Post by SteveT on Sept 21, 2016 11:46:47 GMT
Can't find the post stevio refers to from my phone but suggest you search the FS board for "tax". I keep a record of all my SM purchases and sales to track the premiums / discounts. Having a premium / discount column on the SM transaction history page would help enormously! |
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Post by fundingsecure on Sept 21, 2016 12:30:15 GMT
I will ask our developer if they can add a column into the "My Activity" download.
In the meantime you can work around the issue by going to secondary market history - copy and paste into Excel - you then have all premiums / discounts for everything bought and sold on secondary market. Simple to filter by date / sold / purchased.
Hope this helps
FundingSecure
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SteveT
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Post by SteveT on Sept 21, 2016 12:51:29 GMT
I will ask our developer if they can add a column into the "My Activity" download. In the meantime you can work around the issue by going to secondary market history - copy and paste into Excel - you then have all premiums / discounts for everything bought and sold on secondary market. Simple to filter by date / sold / purchased. Hope this helps FundingSecure Unless I've always been missing something, the SM History page currently only has columns for amount purchased and total price paid. Although it's possible to reverse-engineer the premium/discount from this if you also combine with a loans extract showing the days active and % rate, it's not straightforward!
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stevio
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Post by stevio on Sept 21, 2016 13:05:35 GMT
Can't find the post stevio refers to from my phone but suggest you search the FS board for "tax". I keep a record of all my SM purchases and sales to track the premiums / discounts. Having a premium / discount column on the SM transaction history page would help enormously! it was here p2pindependentforum.com/thread/3842/secondary-market-available?page=25Am I being simple, but do you not just take the amount paid in capital and accrued interest away from the returned capital and interest to form your profit? Of more simply, current funds in account at year end minus amount deposited throughout that tax year?
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Post by fundingsecure on Sept 21, 2016 13:07:40 GMT
SteveT - I was responding to the request for a simple "premium paid" column.
The SM history would allow this to be calculated for a given period.
Could you clarify whether this would be of use - little point in us adding in an extra column if it is not relevant?
I appreciate that this may not enable you to automate your overall company tax return, but was hoping it would help to simplify the process?
FundingSecure
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SteveT
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Post by SteveT on Sept 21, 2016 13:19:09 GMT
SteveT - I was responding to the request for a simple "premium paid" column. The SM history would allow this to be calculated for a given period. Could you clarify whether this would be of use - little point in us adding in an extra column if it is not relevant? I appreciate that this may not enable you to automate your overall company tax return, but was hoping it would help to simplify the process? FundingSecure Ideally I believe it would be helpful to add 2 columns to the SM History page, one for Premium/Discount (£) and one for Accrued Interest (£), so that Amount (£) + Premium/Discount (£) + Accrued Interest (£) = Price (£)
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stevio
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Post by stevio on Sept 21, 2016 13:21:37 GMT
SteveT - I was responding to the request for a simple "premium paid" column. The SM history would allow this to be calculated for a given period. Could you clarify whether this would be of use - little point in us adding in an extra column if it is not relevant? I appreciate that this may not enable you to automate your overall company tax return, but was hoping it would help to simplify the process? FundingSecure Ideally I believe it would be helpful to add 2 columns to the SM History page, one for Premium/Discount (£) and one for Accrued Interest (£), so that Amount (£) + Premium/Discount (£) + Accrued Interest (£) = Price (£) That would be useful
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SteveT
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Post by SteveT on Sept 21, 2016 13:28:39 GMT
And if you can then add an "Export to CSV" button for the SM History, that would be perfect!
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Investboy
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Trying to recover from P2P revolution
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Post by Investboy on Sept 21, 2016 14:13:12 GMT
I will ask our developer if they can add a column into the "My Activity" download. In the meantime you can work around the issue by going to secondary market history - copy and paste into Excel - you then have all premiums / discounts for everything bought and sold on secondary market. Simple to filter by date / sold / purchased. Hope this helps FundingSecure That is an improvement. But the real deal would be if you could include the cumulative total of all premiums on the tax return and calculate profit for companies. My accountant really wants to see some official paper/pdf with those amounts not my calculations.
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Post by fundingsecure on Sept 21, 2016 16:41:39 GMT
As with all changes to the system nothing is ever as simple as it seems.
Due to the way we track data it will take more work to add in a lot more detail.
For the moment we have implemented a small quick-fix - by adding a column on the "My Activity" download which shows the actual amount of the loan purchased / sold on the secondary market. Hopefully this helps a little.
FundingSecure
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