blender
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Post by blender on Dec 12, 2016 11:38:38 GMT
P2P operators may be required to submit figures to HMRC, but that does not mean that HMRC are obliged to use them systematically. They have resourcing and systems issues, and may just check when they feel the need. If Ablrate report a figure to HMRC then when not tell the lender, in some form of report, or confirm it is currently the interest figure on the Dashboard at the appropriate date?
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james
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Post by james on Dec 12, 2016 11:47:13 GMT
When completing my SA tax return online, I'm only asked for an aggregated interest figure (across all savings accounts), not to break it down by individual account / platform. I presume HMRC can only ever compare at an aggregated level, which must include some level of "margin for inconsistency" else they'd forever be querying small discrepancies. Yes, they have margins, though I forget where I read that. P2P operators may be required to submit figures to HMRC, but that does not mean that HMRC are obliged to use them systematically. They have resourcing and systems issues, and may just check when they feel the need. If Ablrate report a figure to HMRC then when not tell the lender, in some form of report, or confirm it is currently the interest figure on the Dashboard at the appropriate date? There's a plan for HMRC to automatically pre-populate tax returns and other things using information given to them by providers. In beta at the moment. This is how they will collect the basic rate tax that banks and such are no longer deducting, a change to notice of coding and tax code once they have the information for those in PAYE. I'll be surprised if it's not in place by the 2018-19 tax year for all and I expect much in 2017-18 as well if the beta is going OK. They expect this sort of thing to save them work as well as improve collection rates. I assume that Ablrate will end up saying what they are reporting because it'll also end up being consistent with the tax statements and reports provided to us. So nothing more to do. Assorted bits of work in progress there, but it's on the list. Meanwhile, HMRC takes estimates without hassle and revisions also.
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Post by ablrate on Dec 12, 2016 12:22:15 GMT
Hi
HMRC require us to complete a report each year for interest earned in that year (for UK individual residents), so we are creating a template report where the info from the platform will populate the report. This is what the 'tax report' that we will have downloadable on the platform will be based on.
Regards Ablrate
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SteveT
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Post by SteveT on Dec 20, 2016 6:14:09 GMT
ablrate, further to blender's post and questions earlier in this thread, why is it that an SM Purchase lumps capital and accrued interest together in a single transaction entry, but an SM Sale splits capital and accrued interest into 2 separate transaction entries? As blender has observed, our dashboard "Total Interest Earned" figures are currently overstated, since any purchased accrued interest is not being deducted from interest paid. Unless this is corrected before tax statements are generated and figures reported to HMRC, any Ablrate lenders who have purchased SM loans with accrued interest will be paying too much income tax (and, without separate reporting of accrued interest on SM Purchases, it is very difficult to adjust for this manually)
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treeman
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Post by treeman on Dec 20, 2016 9:55:37 GMT
ablrate , further to blender 's post and questions earlier in this thread, why is it that an SM Purchase lumps capital and accrued interest together in a single transaction entry, but an SM Sale splits capital and accrued interest into 2 separate transaction entries? As blender has observed, our dashboard "Total Interest Earned" figures are currently overstated, since any purchased accrued interest is not being deducted from interest paid. Unless this is corrected before tax statements are generated and figures reported to HMRC, any Ablrate lenders who have purchased SM loans with accrued interest will be paying too much income tax (and, without separate reporting of accrued interest on SM Purchases, it is very difficult to adjust for this manually) Agreed - it really does need sorting. If Tax Statements are to be made available (which would be a welcome improvement) they may as well be complete and accurate. On that note, I have noticed that the payment listed as ' Interest Correction' (9/9/16 on Jan Containers) appears not to be included in the Dashboard Total Interest Figures (as mine seems to be short by that amount - ignoring the accrued interest issue), when compared to a spreadsheet figure totting up all "*Interest*" entries on the Statement. I'm not in all loans - there may be others...........
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littleoldlady
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Post by littleoldlady on Dec 20, 2016 11:27:08 GMT
Some fair points made above. However the thought of having to justify my last several years returns if HMRC decide to take an interest fills me with such horror that I prefer to take no chances. I would like to submit the same figures that platforms report. Although at present a break down is not required it can optionally be included and IMO it is a good idea to do so. HMRC can then see that I am reporting correctly, at least in the main, and if there is the odd discrepancy it can be queried and sorted without a full scale investigation.
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oldgrumpy
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Post by oldgrumpy on Jan 8, 2017 15:40:19 GMT
ABL sent me my figures quite quickly when I requested them, so they ought to have bee able to place 2015-2016 on our account pages by now. The matter of discrepancy won't arise because the figure we give on our on line declaration is the total* of all our P2P platform interest gains, so there will be no separate platform figures to compare.
* That in itself surprises me; I would've expected HMRC to want details!
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stevio
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Post by stevio on Jan 8, 2017 15:47:23 GMT
ABL sent me my figures quite quickly when I requested them, so they ought to have bee able to place 2015-2016 on our account pages by now. The matter of discrepancy won't arise because the figure we give on our on line declaration is the total* of all our P2P platform interest gains, so there will be no separate platform figures to compare. * That in itself surprises me; I would've expected HMRC to want details! HMRC could simply add up all the figures from all the platforms they receive also, so their could be a discrepancy their, so I agree that we should at least have the figure Ablrate is sending/has sent to HMRC
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littleoldlady
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Post by littleoldlady on Jan 8, 2017 15:55:52 GMT
ABL sent me my figures quite quickly when I requested them, so they ought to have bee able to place 2015-2016 on our account pages by now. The matter of discrepancy won't arise because the figure we give on our on line declaration is the total* of all our P2P platform interest gains, so there will be no separate platform figures to compare. * That in itself surprises me; I would've expected HMRC to want details! You have the option of attaching a worksheet which does show the make-up of the figure you are declaring. I strongly recommend doing this so that if there is some discrepancy HMRC can see that you have, at least mostly, reported correctly and greatly reduce the chance of an investigation. It matters not if you have nothing to hide the administration workload of dealing with one could be great.
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oldgrumpy
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Post by oldgrumpy on Jan 8, 2017 16:11:02 GMT
Quite true littleoldlady and I use it to make sure my addition doesn't let me down. I suppose that eventually there will be more than ten (or is it eight?) boxes to use, and they will be named rather than numbered, which will help HMRC if we have several entries of a similar figure. Don't they state that those elements do not form part of the declaration, just the total (though I bet they can look at it!). Maybe I'm wrong - I'll just be slipping in a bit of dividend info next week, then fire the button!
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Post by ablrate on Jan 9, 2017 15:39:17 GMT
Working on the tax page now... will update you all.#
Ablrate
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stevio
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Post by stevio on Jan 11, 2017 19:20:32 GMT
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dawn
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Post by dawn on Jan 11, 2017 22:43:01 GMT
I was under the impression that 'instant returns' were like cashback - ie an incentive to invest and therefore not included as capital gains....... ablrate could you confirm (or otherwise), please...
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james
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Post by james on Jan 11, 2017 23:19:39 GMT
Dawn, a purchase price discount is what their professional adviser said their status was. This means that where cash back is paid, monthly and final capital payments by a customer will show a CGT gain.
Other platforms may give different guidance depending on the specifics of how they operate. For example, there can be differences in tax treatment depending on whether a loan is expected to last for a year or longer or not, generally simpler for less time.
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stevio
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Post by stevio on Jan 12, 2017 8:25:22 GMT
A purchase price discount is what their professional adviser said their status was. This means that where cash back is paid, monthly and final capital payments by a customer will show a CGT gain. Other platforms may give different guidance depending on the specifics of how they operate. For example, there can be differences in tax treatment depending on whether a loan is expected to last for a year or longer or not, generally simpler for less time. Yes, I understand ablrate consider it's a capital gain, my question was what is Ablrate reporting as Interest to HMRC? (are they including 'Instant Returns') My concern is that the figure for interest reported to HMRC matches the figure I report to HMRC
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