Godanubis
Member of DD Central
Anubis is known as the god of death and is the oldest and most popular of ancient Egyptian deities.
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Post by Godanubis on Apr 3, 2018 0:40:53 GMT
As I've moved most of my p3p to FISA's and have mid 5 figures interest which is non taxable. It only leaves Lendy and Collateral (when it sorts itself out ) as P2P I invest in that you can't avoid tax. I have a few grand in losses in FC London loans still hanging around. Lendy has over £50K of my Capital locked up in their ever increasing unpaid loans. As it seems they never will pay can you elect sufficient each year (as they go on for years) to declare to HMRC as losses to cover interest made and paid. This is decreasing for me as soon as they repay I withdraw from Lendy they are just too lax with our money.
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littleoldlady
Member of DD Central
Running down all platforms due to age
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Post by littleoldlady on Apr 3, 2018 10:27:39 GMT
As I've moved most of my p3p to FISA's and have mid 5 figures interest which is non taxable. It only leaves Lendy and Collateral (when it sorts itself out ) as P2P I invest in that you can't avoid tax. I have a few grand in losses in FC London loans still hanging around. Lendy has over £50K of my Capital locked up in their ever increasing unpaid loans. As it seems they never will pay can you elect sufficient each year (as they go on for years) to declare to HMRC as losses to cover interest made and paid. This is decreasing for me as soon as they repay I withdraw from Lendy they are just too lax with our money.
With your level of investments I would advise using an accountant. I would hope that they would more than cover their fees with tax savings. You must have been very successful with ISAs in the past - congratulations. Were they cash or S&S?
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Post by winger on Apr 3, 2018 10:42:47 GMT
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Post by munchydave on Apr 3, 2018 11:42:21 GMT
There is a HMRC guidance note which implies/infers that only the P2P lending platform should know best when to declare a loan to be in default. I totally disagree with this GN as the platform (Lendy and others?) clearly has a self internest to kick the can down road and so cannot act impartially. Therefore I recommend as a consequence of this and in order to show due diligence and demonstrate that we the lenders have made a reasoned decision, we start a permanent pinned thread of loans that we (a reasonable number of lenders) declare a loan to be in default, such that if and when any one of us are investigated by HMRC we are not seen as acting without authoratitive opinion. I suggest that the Lendy's existing criteria of 6 months in default (without repayment or extension) is more than adequate for HMRC purposes. MODERATORS Can you help here as the 2018 tax year end is a few days away (e.g. to have this escalated somehow?? Create a pinned thread, set up a voting system). PS For what it is worth I took the unilateral decision in April 17 that any Lendy loans over 6 months old were in default. Many poster poo-poo'd this deision, It wouldl help if we also did this retrospectively to cover all late loans (YEs of 2016 and 2017). DAVE SAID On Lendy's web page there is a tab labelled DEFAULTS. If you click on it it states that this is a list of officially defaulted loans. I have read what Lendy has said on the issue but to me this is enough evidence to claim tax relief on the grounds that recovery of funds is in doubt. I note that with a total investment in Lendy of 20K , 7.8K are in the default listing. If we get this back I will be happy to pay the tax but for the moment I will be setting this against any profits this year. In fact it more than wipes out any profit so no tax .
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adrianc
Member of DD Central
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Post by adrianc on Apr 3, 2018 12:51:38 GMT
but to me this is enough evidence to claim tax relief on the grounds that recovery of funds is in doubt. The question is not one of "recovery in doubt", but "no reasonable hope of recovery". That is a MUCH higher bar to cross.
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Post by munchydave on Apr 3, 2018 13:05:54 GMT
but to me this is enough evidence to claim tax relief on the grounds that recovery of funds is in doubt. The question is not one of "recovery in doubt", but "no reasonable hope of recovery". That is a MUCH higher bar to cross. True but worth a try, can only get rejected. I will not be putting in my tax return till around the end of the year so we may know more by then from Lendy.
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Godanubis
Member of DD Central
Anubis is known as the god of death and is the oldest and most popular of ancient Egyptian deities.
Posts: 2,011
Likes: 1,013
|
Post by Godanubis on Apr 3, 2018 20:02:10 GMT
As I've moved most of my p3p to FISA's and have mid 5 figures interest which is non taxable. It only leaves Lendy and Collateral (when it sorts itself out ) as P2P I invest in that you can't avoid tax. I have a few grand in losses in FC London loans still hanging around. Lendy has over £50K of my Capital locked up in their ever increasing unpaid loans. As it seems they never will pay can you elect sufficient each year (as they go on for years) to declare to HMRC as losses to cover interest made and paid. This is decreasing for me as soon as they repay I withdraw from Lendy they are just too lax with our money.
With your level of investments I would advise using an accountant. I would hope that they would more than cover their fees with tax savings. You must have been very successful with ISAs in the past - congratulations. Were they cash or S&S? Over million with small group of friends and a lot of work so taxable income kept to smallest amount to give full Tax allowance + savings allowance I enjoy the effort trying to get all income into FISA'S or capital gains before I get my state pension where I can only get my SIPP allowance as non qualifying non-tax payer so might have to pay a little more tax then. 
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Post by masquedefer on Apr 4, 2018 7:30:51 GMT
Lundy state
Should we ever become concerned that a loan on our platform could not be successfully recovered (in full or in part) we would swiftly inform our investors by update and/or email.
There are no updates or email to say that any Lundy loan has failed, even though some repos are only achieving 40% recovery of the original valuation.
Lundy - A failed island kingdom whose currency is worth zilch.
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zlb
Member of DD Central
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Post by zlb on Apr 7, 2018 13:39:03 GMT
If one can't offset losses in year, does that mean that once L finally concedes something is a loss, that it can be reclaimed from HMRC the following year? Or can losses only be used against earnings in the same year? If it's only the same year, then that's a bit tough on those who eg are investing for two years.
I've noticed on another platform that loans in default aren't given as taxable loss.
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p2p2p
Member of DD Central
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Post by p2p2p on Apr 8, 2018 6:13:50 GMT
I've emailed support to ask for their bad debt list. As bad debit is an inevitable part of p2p, I'll be upset if they brush the idea away to protect their reputation, as it will only sour it in my view.
In my case, I am keen to limit my p2p income to £6k to fit within the starting rate for savings. I presume I can just self-declare in lumps to keep under that. Otherwise its not so crucial what year the loss is crystallized, but still a competent platform should provide a certificate for tax purposes for avoidance of doubt.
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