wapping35
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Post by wapping35 on May 23, 2018 15:39:58 GMT
As a heads up I (and at least one other investor I know) has noticed that recently Zopa have changed the 17/18 tax statement numbers.
I have emailed them today to ask why this has happened and why no communication, since I know some parties may have already filed their tax returns and even if they have not done so they may (like me) assume what I downloaded in early April was correct.
The change is in the tax deductible defaults.
I am totally unaware of how many people are impacted, but it may be worth checking, to see if your tax statement has been revised.
Regards
W35
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aju
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Post by aju on May 23, 2018 22:57:35 GMT
That happened to me last year and I am preparing to adjust this years statement to HMRC to claim back last years over payment of tax due to changes during the year after I had made my HMRC claim.
I agree with you this is not helpful but I think its an issue when internal reports are suddenly found to be incorrect and subsequently corrected thus having a knock on effect on HMRC reports. I wonder how many people notice this and like me paid too much tax based on incorrectly reported figures.
I think it should be incumbent on Zopa to advise people as this could result in incorrect tax payments or worse as in my case paying too much tax and not noticing it!
I checked after your message and for me the report has not changed since i first collected it in April but this has the potential to affect all those poeple with the specific loan/s affected by any changes.
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benaj
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Post by benaj on May 24, 2018 8:26:49 GMT
I downloaded one back in 24/April, and downloaded another one this morning.
They are exactly the same.
Can someone be more explicit about the difference? The numbers and format in mine are identical.
I need at least £200 from my non performing borrowers to make my Zopa account even, ie, total withdrawal is same as total deposit. It is a joke that Zopa Income statement 17/18 shows I made 2.11% on paper when these loans cannot be sold in Zopa and they have been in arrears for more than 4 months.
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aju
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Post by aju on May 24, 2018 8:50:28 GMT
I don't have any difference yet but last years (2016/17) changed from April to Oct when I noticed a difference. The item affected for me was
"Capital recovered from bad debt that qualified for tax relief2"
Looking at wapping35's description it does look like its a similar. I'm guessing that a default was fully recovered after I made my first report of the return. The default is registered when it happens and then when its recovered its marked as such but dated earlier at the default date, just a guess though.
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cb25
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Post by cb25 on May 24, 2018 8:55:55 GMT
I downloaded one back in 24/April, and downloaded another one this morning. They are exactly the same. Can someone be more explicit about the difference? The numbers and format in mine are identical. I need at least £200 from my non performing borrowers to make my Zopa account even, ie, total withdrawal is same as total deposit. It is a joke that Zopa Income statement 17/18 shows I made 2.11% on paper when these loans cannot be sold in Zopa and they have been in arrears for more than 4 months. My statement has changed, the "Loan principal deemed irrecoverable in the year" figure is £16.49 lower than when I first downloaded the statement 7/4/18. £5,222.70". All other figures are the same
I've emailed a complaint to Zopa saying it's inexcusable that they change information used in a tax return without informing lenders.
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wapping35
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Post by wapping35 on May 24, 2018 10:06:01 GMT
Can someone be more explicit about the difference? The numbers and format in mine are identical. The line item that changed was: "Loan principal deemed irrecoverable in the year". The number for me rose by £59.41. That number is a tax deductible loss so my taxable interest income is in fact £59.41 lower than than indicated on the prior statement. As of yet I have not heard back from Zopa with an explanation. As I indicated to Zopa it is there responsibility to communicate the statement has changed. This is really basic legal tax compliance. Otherwise investors will not know the statement has changed. It would also be good if the statement said at the top "revised and the date of the revision". Fortunately since I was awaiting the tax statement from RS I have not yet filed my tax return, but if another investor friend I know had not told me yesterday that her statement had changed I would not have even checked, since I assumed the statement I downloaded in early April was correct. For example I have tax statements from my Bank ,I do not go back to them just before I file my tax return to check if they decided to revise the numbers. (And Zopa wants to become a Bank of course). Hope this helps, W35
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jlend
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Post by jlend on May 24, 2018 10:29:17 GMT
It sounds like Assetz Capital are some way away from completing the review of their tax statements so there is a possibility however small that their tax statements may also change.
The AC statements did change last year when they realised they were using a wrong date field in part of the statement.
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wapping35
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Post by wapping35 on May 24, 2018 10:59:06 GMT
This is the initial response from Zopa (today). i.e. a holding email. (names removed)..
============
Good Morning XXXXX,
Thank you for your email.
I am having this investigated by our Tech Team. I will come back to you once I have a response regarding this matter.
In the meantime, please feel free to contact me if you have any further questions.
Best wishes,
YYYY XXXXX
Client Services
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Greenwood2
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Post by Greenwood2 on May 24, 2018 12:52:10 GMT
Last year my Zopa tax statement changed and then changed back again to the original by the time I filed my tax form. I have the original print out that I wrote 'superseded' on and then 'changed back to this in October'. I don't seem to have kept the changed one.
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cb25
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Post by cb25 on May 25, 2018 13:36:45 GMT
Just received an email from Zopa regarding my Annual Income Statement changing, specifically drop in value of 'Loan principal deemed irrecoverable in the year'. As the subject line of my email to Zopa started 'COMPLAINT: xxx' it triggered a formal (and full) complaint response.
Zopa's response (below) suggests system errors:
"I understand that you are unhappy that the figure for ‘Loan principal deemed irrecoverable in the year’ had changed when you downloaded you Annual Income Statement on two different days.
Initially, I would like to explain how this discrepancy came to be and the actions that were taken with regards to it. There has been a longstanding discrepancy between out summary page and statements, the reasoning behind this is a variance between two servers that provide these details.
It is an issue that with increased development we are looking to rectify but it goes part way to explaining the discrepancy you have identified. A default in your account in January didn’t register on the Statements page of your account however had indeed been reflected on your Summary page. As they were not in the relevant month within your Statements page it would have meant the two pages were out of sync. We did run a fix for this issue which meant that one of your defaulted loans to the value of £36.20 was back dated to 2nd of January 2018. As this was an error that was identified and rectified we did not feel it necessary to inform the small number of effected Investors of this occurrence.
Secondly, a more recent system error meant that a defaulted loan in your loan book on the 24/10/17 had the default marker removed on the 17/05/18. You lent this particular borrower £52 which adds to the discrepancy you witness. We did manage to identify this and defaulted it later that day again, but the system maintained the default occurring that day rather than the original date. Again, this is something that we are looking to fix, which should be relatively soon. Once this has been rectified your overall variance will revert to the variance of £36.20 that you originally reported to HMRC."
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Comments: I have no idea where the 'variance of £36.20' comes from, as it wasn't something I mentioned in my email. Nor did I say I'd reported the first set of figures to HMRC, just that I had downloaded them for that purpose.
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wapping35
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Post by wapping35 on Jun 1, 2018 12:50:48 GMT
As an update Zopa have replied now in full (as of last night).
It seems that for me and some other investors 2 micro loans were booked incorrectly and this meant the Tax Statements for investors holding those loans was incorrect.
The Tax Statements were corrected on May 1 and now they have assured me show the correct numbers:
Zopa have told me quote: " After speaking with the relevant department regarding this matter, an email for the statements prior to 1st May 2018 being incorrect will be sent to the affected investors, including yourself."
On the general compliance issue they have said quote:
" The points you raise regarding a compliance report is not something I can personally implement; however, your email has been acknowledged by the Growth Squad Team as the reporting process can be tightened.
I can appreciate that we have not dealt with this matter as well as it could have been. I can also appreciate that you are emailing as a matter of concern and would like to help us with our processes which is highly valued. If the Growth Squad Team would like to seize the opportunity with speaking with you to improve the overall process, we will be sure to get in contact with you."
===
It would seem the problem is isolated to investors holding one or both (I had both) of those micro loans so the issue will impact only a minority of investors.
I would suggest if you are unsure if you are impacted you make sure you use the Tax Statement downloaded after May 1, 2018 when the statement was corrected.
I hope this helps.
Regards
W35
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aju
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Post by aju on Jun 5, 2018 19:58:45 GMT
Mrs Aju received an email today stating there is mistake in her tax report for 2017/18. I assume its similar to others but the curious thing is that there is absolutely no difference in her latest tax statement compared to the one she generated on 7/4 when the message they were available first appeared. She has poked an email back to see what they are on about but it looks to me that its either not fixed or the amount potentially affecting her is so small as to not be noticable - this happens on some loans. (Hopefully everyone knows that small payments are managed across the lenders so that some payments are not enough to service all lenders - the next payment will be shared on a rotation basis across all lenders of a given loan, the old loanbook used to show this and now you will only see this through the monthly statements CSV which most people will not be looking at at a loan level.)
Zopa did not as yet detail the loans affected by this issue either but we'll see what they say.
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