SteveT
Member of DD Central
Posts: 6,873
Likes: 7,918
|
Post by SteveT on Apr 12, 2017 14:12:21 GMT
blender, the update email says: "Also, the site will be down for a few minutes in the next hour as we are uploading the tax statement facility. It has been a long time coming and is not 100% complete. We are, as yet, to determine an elegant way of extracting premium and discount data, and accrued interest paid and setting these off. However, we wanted to get it out there to report the interest received at a minimum. You will be able to access this function in the account history section and we are working on additional functionality."
|
|
|
Post by brummiefred on Apr 12, 2017 14:57:20 GMT
Rogerbu, see thread on the General Discussion board particularly the contribution by gt94sss2 who points out that the ability to 'carry forward' is limited by certain conditions and not therefore entirely optional.
|
|
|
Post by ablrate on Apr 12, 2017 15:00:48 GMT
Thanks @ablerate. On my tax Statement you quote a 'Report to HMRC' figure made up of 'Total Interest' minus ' (Total) Bad Debt' I need to point out that the Bad Debt can be set off against all P2P interest in this Tax Year (16/17) and a further 3 Tax Years (ie upto 20/21). So it may not be correct to instruct me to report all the 'Bad Debt' this tax year as it may not be the best way for me to use the 'Bad Debt' amount. For example, it is worth pointing out that if someone uses all the 'Bad Debt' this tax year (16/17) and you are successful in recovering some Capital, then HMRC will claw back some (or all) of the 'Bad Debt' used. So it might be prudent to only use some of the Bad Debt in Tax Year 16/17. I assume that you will be continuing to aggressively attempt to recover the defaulted loan? Thanks for the clarity. Obviulsy we cant be expected to know what lenders have with other platforms, so the 'report to hmrc' figure is merely a guideline. ..and yes... we are not done with that one yet.
|
|
sg
Posts: 68
Likes: 69
|
Post by sg on Apr 12, 2017 15:01:54 GMT
Should the statement not also include an amount of Accrued Interest which has been bought during trades on the Secondary Market which should be offset against the interest paid to me to produce a lower "Report to HMRC" figure.
|
|
|
Post by ablrate on Apr 12, 2017 15:04:15 GMT
Thanks. As you mentioned in the Update email, an obvious "still to come" is a "minus Total Accrued Interest paid by you" entry. In the meantime, a couple of formatting tweaks: a) For some reason, my address is shown starting with a stray 0 (possibly picking up an empty "House Number" field?) b) The window that opens after I click "Generate Statement" isn't big enough for the 2 blue buttons at the bottom to be visible (using Chrome in Win10). I can just click on the top edge so have worked out the the right hand one generates a PDF and presumably the left-hand one is just Cancel. I don't get any Ablrate emails. What does it say please about the accrued interest paid, please? That's the only part I really need. DM me your email address and I will see what's up... unless its a blueyonder account... they are not...."very helpful"( )
|
|
blender
Member of DD Central
Posts: 5,719
Likes: 4,272
|
Post by blender on Apr 12, 2017 15:36:36 GMT
Thanks @ablerate. On my tax Statement you quote a 'Report to HMRC' figure made up of 'Total Interest' minus ' (Total) Bad Debt' I need to point out that the Bad Debt can be set off against all P2P interest in this Tax Year (16/17) and a further 3 Tax Years (ie upto 20/21). So it may not be correct to instruct me to report all the 'Bad Debt' this tax year as it may not be the best way for me to use the 'Bad Debt' amount. For example, it is worth pointing out that if someone uses all the 'Bad Debt' this tax year (16/17) and you are successful in recovering some Capital, then HMRC will claw back some (or all) of the 'Bad Debt' used. So it might be prudent to only use some of the Bad Debt in Tax Year 16/17. I assume that you will be continuing to aggressively attempt to recover the defaulted loan? Thanks for the clarity. Obviulsy we cant be expected to know what lenders have with other platforms, so the 'report to hmrc' figure is merely a guideline. ..and yes... we are not done with that one yet. I'm not sure that it is right to net off the interest and losses within a platform. Funding circle do not do this, they give separate figures for income to you and losses in the period. I think the thing to do is to sum the income from all platforms and the losses from all platforms before netting. And I am not sure that you do not have to input those figures separately? I have never had to do it, with no losses in 15/16. Also I am concerned about putting an incomplete statement live on site - without the purchased interest deducted. Someone may actually use it for reporting and then find the figures changed, when purchased interest is done, and in Albrate's report of course. Or might that not happen in time?
|
|
|
Post by dan1 on Apr 12, 2017 15:45:31 GMT
Thanks for the clarity. Obviulsy we cant be expected to know what lenders have with other platforms, so the 'report to hmrc' figure is merely a guideline. ..and yes... we are not done with that one yet. I'm not sure that it is right to net off the interest and losses within a platform. Funding circle do not do this, they give separate figures for income to you and losses in the period. I think the thing to do is to sum the income from all platforms and the losses from all platforms before netting. And I am not sure that you do not have to input those figures separately? I have never had to do it, with no losses in 15/16. Also I am concerned about putting an incomplete statement live on site - without the purchased interest deducted. Someone may actually use it for reporting and then find the figures changed, when purchased interest is done, and in Albrate's report of course. Or might that not happen in time?
I too have concerns about the incomplete tax statement. I would like to submit the same information to HMRC that Ablrate submit in their reporting (I understand that each platform submits details of all account holders and their taxable income).
|
|
|
Post by ablrate on Apr 12, 2017 15:50:41 GMT
We report interest earned on the account as we are requested. We are not asked to net off accrued paid, capital gains, losses etc. We are working on adding these in for your use in reporting. We have a large job to reboot the secondary market comments section and the way it works within the DB, so rather than wait for that and have nothing, we have a report of the accrued, interest and losses.
Best Ablrate
|
|
gt94sss2
Member of DD Central
Posts: 281
Likes: 137
|
Post by gt94sss2 on Apr 12, 2017 16:07:05 GMT
I'm not sure that it is right to net off the interest and losses within a platform. Funding circle do not do this, they give separate figures for income to you and losses in the period. I think the thing to do is to sum the income from all platforms and the losses from all platforms before netting. It may or may not be for the platform to do this but as an individual tax payer HMRC expect you to offset any losses against the P2P platform they were incurred with first within the tax year concerned, before offseting the balance against any other P2P platforms. As HMRC put it: Have a look at SAIM 12120 and 12130 (pages 14 and 15) of www.gov.uk/government/uploads/system/uploads/attachment_data/file/597959/Income_tax_relief_for_irrecoverable_peer_to_peer_loans_FINAL_GUIDANCE__2_.pdfThe overall net result is the same though..
|
|
sg
Posts: 68
Likes: 69
|
Post by sg on Apr 12, 2017 16:24:29 GMT
We report interest earned on the account as we are requested. We are not asked to net off accrued paid, capital gains, losses etc. We are working on adding these in for your use in reporting. We have a large job to reboot the secondary market comments section and the way it works within the DB, so rather than wait for that and have nothing, we have a report of the accrued, interest and losses. Best Ablrate ablrate - Surely "Interest Earned" is "Interest Paid by Borrower" + "Accrued Interest paid to you" - "Accrued Interest paid by you" To quote your Tax Position FAQ
|
|
blender
Member of DD Central
Posts: 5,719
Likes: 4,272
|
Post by blender on Apr 12, 2017 16:48:16 GMT
We report interest earned on the account as we are requested. We are not asked to net off accrued paid, capital gains, losses etc. We are working on adding these in for your use in reporting. We have a large job to reboot the secondary market comments section and the way it works within the DB, so rather than wait for that and have nothing, we have a report of the accrued, interest and losses. Best Ablrate Thank you for clarifying what you are doing. I assume you report the accrued interest sold. In that case the sum of your reports of interest received in lender's accounts will exceed the sum of interest paid by borrowers, because the sold accrued interest amount is double reported. If Funding Circle can add sold accrued interest and net off the purchased accrued interest from the borrower payment, can you not also? It disadvantages the platform. Appreciate that the sm comments is a large job, and your work to do it.
|
|
mickj
Member of DD Central
Posts: 433
Likes: 191
|
Post by mickj on Apr 12, 2017 17:08:53 GMT
A quick question - Instant returns are seen as Interest payments, same same ? or not/wot. Thanks
|
|
pom
Member of DD Central
Posts: 1,922
Likes: 1,244
|
Post by pom on Apr 12, 2017 17:12:13 GMT
A quick question - Instant returns are seen as Interest payments, same same ? or not/wot. Thanks Nope, they're capital discounts.
|
|
mickj
Member of DD Central
Posts: 433
Likes: 191
|
Post by mickj on Apr 12, 2017 17:53:51 GMT
Many thanks pom & new2p2p, I looked in the faq but not enough . So opinion in faq is a capital gain ("in the opinion of our accountants").
|
|
hazellend
Member of DD Central
Posts: 2,361
Likes: 2,179
|
Post by hazellend on Apr 12, 2017 19:01:32 GMT
Why can't ablrate just make instant returns cashback instead, then no tax problem
|
|