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Post by gusgorilla on Jun 21, 2020 16:08:17 GMT
ablrate I agree, an update would be very welcome.
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Post by gusgorilla on Sept 4, 2018 10:18:56 GMT
Does anybody know if Lendy has ever sold collateral to get back money owed to us on overdue loans? If not, why not? If so where can on the website can I see these loans and the amounts recovered and shortfalls (if any)?
My portfolio consists almost entirely of overdue loans. Several are 2 years overdue. Other P2P platforms that sell loans secured against property attempt to recover capital from loans that have gone bad by selling the properties. Does anybody have any idea why this is not happening in the case of my (very) overdue loans? I thought this was the whole point of loans being secured against property!
Does Lendy actually have possession of the properties it says our loans are secured against? Is anybody smelling a rat?
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Post by gusgorilla on May 19, 2018 20:14:21 GMT
Lendy Support, unlike the other P2P platforms I invest in (e.g. Funding Secure) you do not provide me with capital lost and capital recovered figures. This means I cannot offset my losses with Lendy against interest earned. I can be making a loss but you still force me to pay tax I do not owe. When do you plan to fix this problem?
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Post by gusgorilla on Dec 16, 2017 2:25:24 GMT
ablrate said ". . . we will find a solution to make sure lenders do not lose out." This seems either to be a rash promise, or a promise that Ablrate will make up any shortfall?? Just to remind ablrate what they said. I still have this somewhere. I hope they will be true to their word, unlike the guy who they let steal our collateral. Just saying like.
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Post by gusgorilla on Apr 5, 2017 16:57:51 GMT
Oh dear. I have just been assured by AC over the phone that they have never had a capital loss. Perhaps there was some misunderstanding by me or them. I was asking them why their Tax Statement page (on the Reports menu) did not have a figure for losses. Sounds like I need to phone them back. andrewholgate or other AC people can you please clarify? Because they have never officially closed any of the recoveries on the defaulted loans and formally written them off. However, HMRC allow lenders to declare their own losses based on whether a loan is irrecoverable without legal action which applies to all off the permanently suspended loans on AC. Therefore we can claim for losses even if AC hasnt officially declared a capital loss. ilmoro it seems that you might be implying that AC are making our lives much harder by artificially, indefinitely omitting total defaults and total recoveries from their Tax Statement pages so they can tell people they have suffered no losses. If this is really what is happening it seems dishonest and I feel mistreated and not cared for. Thank goodness for platforms such as FS who are upfront about losses and recoveries. This is what FS tax statements look like now (numbers for illustration only): Total interest earned £1501.45 Total tax withheld £0.00 Capital losses from defaulted loans £1201.00 Capital recovered from defaulted loans £0.00 This looks bad at first glance because it seems profit has only been £300 (and this is what is taxable) but in reality the 1201.00 (or most of it) will appear as capital recovered in the following year. If all loans were sold at the end of this year the subsequent year might look like this: Total interest earned £0.00 Total tax withheld £0.00 Capital losses from defaulted loans £0.00 Capital recovered from defaulted loans £1201.00 The taxable profit this year would be £1201. SteveT are you suggesting that AC have low recovery rates that are partially concealed by them not declaring loans irrecoverable when it is clear they are, or am I going too far too fast here?
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Post by gusgorilla on Apr 5, 2017 16:17:08 GMT
Please reach out to our support. They will gladly help. Maybe I got them on a bad day (see below). I have now deleted all my autoinvestors that buy loans that have no buyback guarantee and sold all my loans without buyback guarantee. I'm not holding my breath that this issue will be dealt with any time in the near future, if ever, which is a shame not just for UK lenders needing to fill in tax forms but all investors needing to see this information easily. martins, am I being too pessimistic? Fellow Finance provide this information on their tax reports already and both Twino and Viventor have said they are working on it.
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Post by gusgorilla on Apr 5, 2017 15:40:12 GMT
I've chatted to Twino support. Their current plan is to adapt their My Investments, Account Statement, Download Income Statement (2016) link report to include capital losses and allow arbitrary start and end dates. I'm not sure when this will happen but they were clear that they would be going ahead with this.
In the meanwhile I have cancelled my autoinvestors that buy loans that are not buyback/guaranteed and sold all these loans. Luckily only a couple of small ones had already gone bad. I'll jump back into these types of loan once the new income statements are up and running.
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Post by gusgorilla on Apr 5, 2017 15:32:59 GMT
Slightly daunted to calculate that my total AC loan capital which became "irrecoverable" for tax purposes in 2016/17 (#26, #45, #123, #199, #208, #230) amounts to 47% of my total AC interest in the year. And I thought I'd been quite careful / lucky to avoid some of the smellier ones! Can others beat this? On the plus side, there's also a £9.19 recovery from #57. Oh dear. I have just been assured by AC over the phone that they have never had a capital loss. Perhaps there was some misunderstanding by me or them. I was asking them why their Tax Statement page (on the Reports menu) did not have a figure for losses. Sounds like I need to phone them back. andrewholgate or other AC people can you please clarify?
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Post by gusgorilla on Apr 5, 2017 8:54:27 GMT
martins I hope you can help lenders from the UK, and possibly some other countries, fill in their tax return forms. In the UK you can offset capital losses against earnings for tax purposes. The UK personal fiscal year (6 April to 5 April) is now ended. UK lenders need figures between these dates for earnings and for net capital losses. It would be OK for net capital losses to be split into gross capital losses (from default loans) and capital recovered from defaulted loans (asset sales etcetera). From the reporting facilities on your website I am able to work out a total earnings figure between any dates (although it would be nice if the figure could be reported directly). However, could you please help me to obtain a net capital losses figure, split into gross capital losses from default loans and capital recovered from defaulted loans if you prefer. Alternatively, could you please manually provide me with my own figure for 6 April 2016 to 5 April 2017.
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Post by gusgorilla on Apr 5, 2017 8:34:15 GMT
@nancelot I am a UK resident paying only UK tax. Are you saying that my earnings from abroad are treated differently from my UK earnings? If so could you point me at the source of this information please?
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Post by gusgorilla on Apr 4, 2017 21:42:03 GMT
I want a summary of income and capital losses from Twino for the UK personal fiscal year (6 April to 5 April). I'm looking on the My Investments, Account Statement page. It seems income can be reported OK. You just set the dates in the boxes, set the Account types box to just have Interest and leave the All transaction types box set to all. You can then hit Download and get a spreadsheet you can use a the SUM function on. Does anybody know how to get a capital losses figure? If not it looks like it is only worth lending on Buyback and Payment Guarantee loans, because we cannot write off any capital losses against tax. twino can you help/advise please?
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Post by gusgorilla on Apr 4, 2017 21:02:16 GMT
Yes, I appreciate that but it's irrelevant with regard to the Tax Statement. The trigger point for a distressed loan becoming deductible for tax purposes under SAIM 12050 is when it enters "legal recovery procedures", not when a final loss eventually crystallises. Recoveries made after that trigger point are then taxed as income in the tax year they are recovered. I have just reread HMRC guidance on the matter and was drawn to the highlighted text below..... I hope I'm wrong, but ISTM the above appears to imply that even if commencement of "legal recovery procedures" makes a loan decutable, there appears to be no statutory requirement for a platform to provide any supporting evidence, leaving us with the leg-work. While, at one end of the default scale, I can appreciate why there would be a reluctance to categorise a loan such as #199, where there is high confidence of a full and timely recovery, in as negative light as , say, The Plumber and The Optician at the other end, any failure by a platform to provide evidence of any deductable loss (actual or potential) may well result in lenders choosing not to maximise the benefits of this tax reduction measure due to a perceived complexity of dealing with HMRC. P.S. Email from FS today to announce that their tax statement now provides details (total and per loan) for losses and recoveries, so it can be done. Agreed, it seems to me that FS have the right way of handling this (as I said in another thread). The FS tax statement looks like this: A Total interest earned £X B Total tax withheld £0.00 C Capital losses from defaulted loans £Y D Capital recovered from defaulted loans £Z Net, taxable interest is simply A - C + D. If some or all of a loan defaulted in one year is recovered in a subsequent year then it will appear in that year's tax statement so it all works out nicely regardless of when/if recovery occurs.
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Post by gusgorilla on Apr 4, 2017 20:49:13 GMT
Thanks for this ptr120 . I must have missed that post. Good for them if so. ablrate , would you like to take the opportunity to confirm this again so your good name is left untarnished?
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Post by gusgorilla on Apr 4, 2017 20:40:16 GMT
Maybe we could strike out the bit about not being in default registerme ? I'm planning to be able to make a deduction for the defaulted loan I hold. Although that does rather depend on ablrate playing ball. It seems to me that FS have the right way of handling this. Their method closely follows the guidance and appears clean. I hope that ablrate will follow suit in their reporting. The FS tax statement looks like this: A Total interest earned £X B Total tax withheld £0.00 C Capital losses from defaulted loans £Y D Capital recovered from defaulted loans £Z (I'm not sure what item B is for, but ignore that for now by assuming it is always 0). Reporting in this format makes it easy to fill in tax returns. Net, taxable interest is simply A - C + D. If some or all of a loan defaulted in one year is recovered in a subsequent year then it will appear in that year's tax statement so it all works out nicely.
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Post by gusgorilla on Apr 4, 2017 11:51:48 GMT
As the end of the personal fiscal year is now upon us it's nice to see that the website has a Tax Statement in place. However, this appears to be incomplete as there is no capital losses row in it. collateral could you please tell us when we can expect this to be added to this report so that we can offset capital losses caused by those (no doubt rare) occasions when asset sales are not sufficient to cover defaults? Collateral has not had any capital losses. Great. Thanks. Hopefully they will add it as soon as they have their first one. Good to go for this year anyway.
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