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Post by chielamangus on Sept 29, 2017 14:18:53 GMT
This new statement is useless as far as I am concerned. I cannot select the dates I want - I want to know the position well in advance of the end of the tax year so that I can take remedial action if necessary. And I want to do it monthly. And as far as the 2016-17 tax return is concerned, I submitted mine yonks ago so this report is pointless. I might add that I did not declare the losses that AC have discovered since they were not declared officially as losses when I made my tax submission. There will be inconsistencies between my figures and AC's for a few years because of this. For a very important document, this change is hasty and ill-conceived.
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n
Member of DD Central
Yet another Nick
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Post by n on Sept 29, 2017 14:29:51 GMT
This new statement is useless as far as I am concerned. I cannot select the dates I want - I want to know the position well in advance of the end of the tax year so that I can take remedial action if necessary. And I want to do it monthly. And as far as the 2016-17 tax return is concerned, I submitted mine yonks ago so this report is pointless. I might add that I did not declare the losses that AC have discovered since they were not declared officially as losses when I made my tax submission. There will be inconsistencies between my figures and AC's for a few years because of this. For a very important document, this change is hasty and ill-conceived. I hope that by hasty you don't mean quickly. It took a long, long time to happen. 
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Post by chielamangus on Sept 29, 2017 14:55:48 GMT
This new statement is useless as far as I am concerned. I cannot select the dates I want - I want to know the position well in advance of the end of the tax year so that I can take remedial action if necessary. And I want to do it monthly. And as far as the 2016-17 tax return is concerned, I submitted mine yonks ago so this report is pointless. I might add that I did not declare the losses that AC have discovered since they were not declared officially as losses when I made my tax submission. There will be inconsistencies between my figures and AC's for a few years because of this. For a very important document, this change is hasty and ill-conceived. I hope that by hasty you don't mean quickly. It took a long, long time to happen. Did it? It had a long gestation period? With plenty of consultations? It happened overnight as far as I am concerned without any consideration of investors' needs.
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Post by chielamangus on Sept 29, 2017 15:19:10 GMT
And as I speak, the following drops into my inbox:
Following the introduction of new tax relief rules by HMRC, we have changed the way our Tax Statement works. The new rules, which were introduced in March 2016, allow for the deduction of possible losses arising from loans that have gone into default against the interest income that a lender has earned during the year. This allows for actual losses to be offset against your interest income. Should a recovery of the loan happen at a later date, the capital will be treated as interest income, reversing the previous relief received.
HMRC guidance on these rules can be found here.
Lenders should be aware that it is not mandatory to offset losses in this way, you have the choice to do so or not. The new Tax Statement has been prepared under Assetz Capital’s interpretation of the guidance issued by HMRC. Should lenders choose not to use the allowance, we have set out interest income and other income clearly in the statement. Qualifying losses and subsequent recoveries are also clearly set out in order to differentiate income from amounts that are used in the allowance.
Loans that are determined to be irrecoverable from 6th April 2015 onwards are eligible for offset against interest income. The question of when they become irrecoverable is when “there is no reasonable prospect of the recovery of the loan”. With secured lending, there should be a prospect of recovery but that does not exclude secured loans from this tax relief. HMRC clarify that secured loans “may be treated as… …if the security did not exist”. Under this guidance, HMRC also state that “the platform would usually be in a position to determine when a loan has become irrecoverable”. For the purposes of the Tax Statement provided by Assetz Capital, loans are deemed to be irrecoverable for tax purposes at the point that formal recovery action is taken. HMRC are clear that the lender’s whole investment in that loan should be offset against interest. There is no option to use a partial amount, therefore the lender’s whole investment in the loan is the figure that is used. Lenders might want to interpret that guidance differently; for example lenders may determine at what point is a loan treated as irrecoverable to be different to the date that Assetz Capital are suggesting.
Our new Tax Statement shows how much normal interest you have received and how much income you have received from incentives. It is the responsibility of the lender to ensure that they declare their income. It is Assetz Capital’s understanding that cash back incentives should be treated as income under HMRC rules and we have included them in the Tax Statement. Lenders should take their own advice on this. We have included a new section detailing balances that can be used to offset against interest income, as well as recoveries that will be treated as income. In this statement we have included all loans that have gone into recovery since 6th April 2015 and all the capital recovered since that date. As we included interest recovered in your previous Tax Statement, the interest recovered only covers the current tax year. This way you are able to offset all qualifying loans. With the Self Assessment online return deadline approaching at the end of October we have released this now in order for you to prepare your return for the current tax year.
We have temporarily removed the ability to see information for future tax years while we replace that with new fuctionality. The vast majority of our lenders are UK based individuals which is why we have set up our Tax Statement to run in line with the UK tax year. However, we know that some of our lenders are corporate entities or are located in different tax jurisdictions. Therefore, we will be introducing the ability to get transactional data they need for their tax year. We will update lenders as to when this will be available.
Assetz Capital are not tax advisers and if you have any concerns you should consult a qualified professional who can help you with your individual tax needs.
My bold. I hope it will include the ability to choose ANY period, not just 12 monthly periods. And a pity it did not emerge in some form in May when all the data was available and when some of us prepare our returns before they get lost/forgotten in some filing cabinet.
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n
Member of DD Central
Yet another Nick
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Post by n on Sept 29, 2017 15:46:22 GMT
I hope that by hasty you don't mean quickly. It took a long, long time to happen. Did it? It had a long gestation period? With plenty of consultations? It happened overnight as far as I am concerned without any consideration of investors' needs. follows the saga. No consulation with lenders that I am aware of.
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littleoldlady
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Post by littleoldlady on Sept 29, 2017 15:58:29 GMT
I would also like to put im my own dates. Also, selecting a year before I started investing crashes the site. stuartassetzcapital |
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duck
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Post by duck on Sept 29, 2017 17:11:59 GMT
As far as I'm aware the online deadline is 31/01/18 the 31st of October applies to paper returns, this is backed up by the HMRC website On Sunday I will be preparing my figures for my Ltd Co so looks like they will be receiving my spreadsheets and downloaded transactions this year  |
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littleoldlady
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Running down all platforms due to age
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Post by littleoldlady on Sept 29, 2017 18:12:39 GMT
As far as I'm aware the online deadline is 31/01/18 the 31st of October applies to paper returns, this is backed up by the HMRC website On Sunday I will be preparing my figures for my Ltd Co so looks like they will be receiving my spreadsheets and downloaded transactions this year I thought the end Oct deadline was for HMRC to do the calculations for paper returns. You can use on-line after that, but if you use paper you have to work out tax due/overpaid yourself. But happy to be corrected if I'm wrong.
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Post by bobthebuilder on Sept 29, 2017 20:04:21 GMT
It is Assetz Capital’s understanding that cash back incentives should be treated as income under HMRC rules and we have included them in the Tax Statement. Lenders should take their own advice on this.
Anybody else agree with this?
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daveb4
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Post by daveb4 on Sept 30, 2017 7:13:02 GMT
Good idea but also 'want' my own choice of dates, hopefully will come back soon
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ashtondav
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Post by ashtondav on Sept 30, 2017 7:21:48 GMT
It is Assetz Capital’s understanding that cash back incentives should be treated as income under HMRC rules and we have included them in the Tax Statement. Lenders should take their own advice on this.
Anybody else agree with this? AC employ legal and tax advice that differs from any other platform. It's charming in a perverse, user unfriendly way.
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Post by slopsjon on Sept 30, 2017 7:28:59 GMT
I asked on the 7/4/2017
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markdirac
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Post by markdirac on Sept 30, 2017 19:30:11 GMT
How do you guys work out your interest income for a month? Surely I am not alone in recording, at the end of each month, the interest earned from each platform during that month?
For AC I used to go to the tax statement and filter from the start of the month to the end of the month. That possibility is now removed.
It looks as though I need to download 6 huge spreadsheets, do some extra arithmetic and work it out myself? Really? Is that what everyone else does? Or am I missing something?
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ilmoro
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'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 Sept 30, 2017 20:00:02 GMT
How do you guys work out your interest income for a month? Surely I am not alone in recording, at the end of each month, the interest earned from each platform during that month? For AC I used to go to the tax statement and filter from the start of the month to the end of the month. That possibility is now removed. It looks as though I need to download 6 huge spreadsheets, do some extra arithmetic and work it out myself? Really? Is that what everyone else does? Or am I missing something? e Can't you just use the new daily balance statements. Balanced on last of current month minus balance on the last day of previous month plus/minus any credits/withdrawals to from platform equals interest. Or is that too obvious?
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markdirac
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Post by markdirac on Sept 30, 2017 20:38:46 GMT
Thanks Ilmoro. Not obvious enough for me I'm afraid. I have been hunting around for something as obvious as all the other platforms. But thanks that I can stop hunting around now.
(I am now perturbed that the values I get using your method are all about £5 to £15 different from the values I used to get from the tax statement.)
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