nick
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Post by nick on Jun 21, 2018 21:28:57 GMT
I would be weary of being selective in the timing of loss relief claims, particularly when a platform gives figures. Whether a loan is deemed irrecoverable under the legislation is a matter of fact rather than judgement (although the platforms do not always feed all the relevant facts to lenders which makes the determination of when a loan becomes 'irrecoverable' difficult absent a platform providing a specific figure). So youre saying provide the losses to HMRC only when and what a P2P has specified on their tax statement? Yes, that is what I would advocate purely because it by far the easiest position to support should your return ever be subject to a query and requires zero administration. If you start trying to make your own determinations you will need to keep records of how you reached your figures for six years and will need to track any subsequent recoveries for adjustment in subsequent tax returns. Over time this could lead to a significant administrative burden. Unless your level of losses in absolute figures is large and you have a lot time on your hands, the potential benefit of attempting to recognise tax losses earlier is fairly marginal. It will generally benefit the timing of tax cashflows rather than overall liability unless you withdraw from P2P before utilising all your losses. Apologies for the delayed response - I only just saw your post.
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archie
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Post by archie on Jun 22, 2018 7:12:27 GMT
Just in case anyone isn't aware, if you view the FS tax statement online you can click the '+' signs alongside the losses & recoveries to get a breakdown.
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rogerthat
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Post by rogerthat on Jun 22, 2018 11:28:36 GMT
So youre saying provide the losses to HMRC only when and what a P2P has specified on their tax statement? Yes, that is what I would advocate purely because it by far the easiest position to support should your return every be subject to a query and requires zero administration. If you start trying to make your own determinations you will need to keep records of how you reached your figures for six years and will need to track any subsequent recoveries for adjustment in subsequent tax returns. Over time this could which lead to a significant administrative burden. Unless your level of losses in absolute figures is large and you have a lot time on your hands, the potential benefit of attempting to recognise tax losses earlier is fairly marginal. It will general benefit the timing of tax cashflows rather than overall liability unless you withdraw from P2P before utilising all your losses. Apologies for the delayed response - I only just saw your post. Wise advice...having been self employed and VAT registered for <25yrs and already overdue for retirement, my accountant soon convinced me that being 'selective' over tax losses causes far more hassle than its worth. Unless you're in the Brinks Matt category, be happy that you can substantiate your profit/loss accounts with someone else doing the leg work.
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r1200gs
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Post by r1200gs on Jun 22, 2018 11:41:51 GMT
This is why I just got myself an accountant, all this makes my vision go blurry. And incidentally, three years on FS and I'm just about break even, I think! Shocking really. I'm still hanging on with a few very select loans and of course  railway memorabilia may be around forever.... |
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railway memorabilia may be around forever....