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Post by winger on Apr 7, 2018 10:51:36 GMT
I just wish MT would provide the detail behind their 2 summary figures for "New defaults" & "Capital recovered" on the Tax Statement (as FS does).
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investibod
Member of DD Central
Posts: 288
Likes: 152
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Post by investibod on Apr 7, 2018 10:53:12 GMT
Yes, but then you might wind up explaining (now, or worst case in some years time) why the numbers you send HMRC don't match the number the platform sent. Easiest to just go with the flow .. That's why we need an easier way to list the items included in the defaults and recoveries section of the tax statement. I certainly won't be offsetting all my defaults as it would cost me too much next year. There really isn't any way HMRC could reconcile the income figure you put on your tax statement with any certainty. Just keep records so you can prove your calculations. For 2016-17 I typed all of calculations into a text document and then uploaded that with my tax return. This was my first year having to claim any tax losses, so was not sure of the best way to do it. I just thought that if I included my calculations, they had the opportunity to let me know if they did not agree.
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Post by Duane Dibley on Apr 7, 2018 12:15:18 GMT
The only issue with the MT 'lets call them all defaulted' approach is that it pushes a bunch of taxable income into the future, leaving one hoping there will be a similar set of defaults (maybe Ly will fess up to some?) in 2018/9, to absorb the bump .. if not the carefully profiled (to stay out of supertax) income stream is going to veer in and out of acceptable. Frustrating. Very frustrating. No very very very frustrating. I'm sure I'm not alone in doing my tax planning on a continuous basis throughout the year, based on income earned so far, interest paid, defaults called etc, and using pension contributions, VCT and EIS schemes etc to reduce my tax bill or keep in a particular tax band. As late as Thursday, the last day to undertake any tax planning, MT were declaring there were no capital losses in 2017-18. Then lo and behold, Friday morning when it's too late to do anything about it, we have defaults coming out our ears. Twelve months of careful tax planning out the window. Thanks MoneyThing. Thanks a bunch. Amateurs. And for those who have most helpfully said we don't need to claim these losses, have you thought about what might happen next year when presumably they'll be more capital losses and hopefully some recovery, or the year after when they'll be other losses and hopefully more recovery, or the year after that? As others have quite rightly pointed out it's a bureaucratic nightmare trying to reconcile future recoveries with previous losses which may or may not have been claimed for, leaving the only real option to report to HMRC exactly the same figures as the platforms have and then cross your fingers that losses and recoveries are smoothed out in future years to avoid jumping in to a higher tax band or being presented with a bumper tax bill.
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archie
Posts: 1,846
Likes: 1,846
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Post by archie on Apr 7, 2018 12:20:27 GMT
The only issue with the MT 'lets call them all defaulted' approach is that it pushes a bunch of taxable income into the future, leaving one hoping there will be a similar set of defaults (maybe Ly will fess up to some?) in 2018/9, to absorb the bump .. if not the carefully profiled (to stay out of supertax) income stream is going to veer in and out of acceptable. Frustrating. Very frustrating. No very very very frustrating. I'm sure I'm not alone in doing my tax planning on a continuous basis throughout the year, based on income earned so far, interest paid, defaults called etc, and using pension contributions, VCT and EIS schemes etc to reduce my tax bill or keep in a particular tax band. As late as Thursday, the last day to undertake any tax planning, MT were declaring there were no capital losses in 2017-18. Then lo and behold, Friday morning when it's too late to do anything about it, we have defaults coming out our ears. Twelve months of careful tax planning out the window. Thanks MoneyThing. Thanks a bunch. Amateurs. And for those who have most helpfully said we don't need to claim these losses, have you thought about what might happen next year when presumably they'll be more capital losses and hopefully some recovery, or the year after when they'll be other losses and hopefully more recovery, or the year after that? As others have quite rightly pointed out it's a bureaucratic nightmare trying to reconcile future recoveries with previous losses which may or may not have been claimed for, leaving the only real option to report to HMRC exactly the same figures as the platforms have and then cross your fingers that losses and recoveries are smoothed out in future years to avoid jumping in to a higher tax band or being presented with a bumper tax bill. Other platforms do exactly the same thing. If you prefer, wait for the recoveries and claim any shortfall.
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