ashtondav
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Post by ashtondav on Apr 9, 2019 11:51:38 GMT
I presume i deduct "total eligible bad debt" from "income payments to you" to arrive at the net interest to report on my SA tax return, as an individual taxpayer.
Is that correct?
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Kyrios
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Post by Kyrios on Apr 9, 2019 11:55:02 GMT
I presume i deduct "total eligible bad debt" from "income payments to you" to arrive at the net interest to report on my SA tax return, as an individual taxpayer.
Is that correct?
If the losses are coming from investments made after April 2015 (which is probably the case), it's correct.
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ashtondav
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Post by ashtondav on Apr 9, 2019 12:08:29 GMT
Thanks. I was confused because on my dashboard it deducts bad debt before showing me my annualised return and on the tax statement it doesn't. I had forgotten about the 2015 decision.
BTW I am now down to an annualised returned of 5.6%
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coogaruk
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Post by coogaruk on Apr 10, 2019 13:36:38 GMT
I presume i deduct "total eligible bad debt" from "income payments to you" to arrive at the net interest to report on my SA tax return, as an individual taxpayer.
Is that correct?
FC has made it quite simple for me this time.
In the period, for every £1 net income received I have acquired £2.15 eligible bad debt. 
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cobi
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Post by cobi on Apr 10, 2019 14:29:07 GMT
I presume i deduct "total eligible bad debt" from "income payments to you" to arrive at the net interest to report on my SA tax return, as an individual taxpayer.
Is that correct?
FC has made it quite simple for me this time.
In the period, for every £1 net income received I have acquired £2.15 eligible bad debt. And I thought £1.36 bad debt to every £1 interest was bad. Everything eligible is in the selling queue now.
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benaj
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Post by benaj on Apr 10, 2019 20:18:12 GMT
My 18/19 return on FC: Every £1 interest earned, there's 51p bad debt. Net income 49p
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coogaruk
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Post by coogaruk on Apr 11, 2019 16:39:55 GMT
My 18/19 return on FC: Every £1 interest earned, there's 51p bad debt. Net income 49p So your overall return has been more than halved by bad debt. Reduced to what %?
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benaj
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Post by benaj on Apr 11, 2019 17:22:06 GMT
My 18/19 return on FC: Every £1 interest earned, there's 51p bad debt. Net income 49p So your overall return has been more than halved by bad debt. Reduced to what %? Well, all I can say FC does not deliver consistent return across my 7 accounts, just delivered 5%+ return. Overall, total income is £2.14k vs £1.1k bad debt, net £1.04k. Bad debt of one account is 75% of interest earned compared to bad debt level in another account is 25% of interest earned. I do expect more losses in 19/20 as I have sold 90% loans around January - March this year, leaving some accounts with arrears and loans having risk bands removed, but I keep 10% active for my interest in p2p. It's pity to learn FC Classic could not deliver 7% headline rate, but I do wonder the return of FC conservative is in 18/19. Anyone care to share? Does FC Conservative deliver more than 4%?
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Post by df on Apr 11, 2019 18:19:33 GMT
So your overall return has been more than halved by bad debt. Reduced to what %? Well, all I can say FC does not deliver consistent return across my 7 accounts, just delivered 5%+ return. Overall, total income is £2.14k vs £1.1k bad debt, net £1.04k. Bad debt of one account is 75% of interest earned compared to bad debt level in another account is 25% of interest earned. I do expect more losses in 19/20 as I have sold 90% loans around January - March this year, leaving some accounts with arrears and loans having risk bands removed, but I keep 10% active for my interest in p2p. It's pity to learn FC Classic could not deliver 7% headline rate, but I do wonder the return of FC conservative is in 18/19. Anyone care to share? Does FC Conservative deliver more than 4%? I'm also curious. Can't recall any conservative feedback on this board. At the start of the change (sept 2017) I didn't think many people will go for it - projected rate range was too low for such high risk investment.
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coogaruk
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Post by coogaruk on Apr 13, 2019 12:50:20 GMT
I presume i deduct "total eligible bad debt" from "income payments to you" to arrive at the net interest to report on my SA tax return, as an individual taxpayer.
Is that correct?
FC has made it quite simple for me this time.
In the period, for every £1 net income received I have acquired £2.15 eligible bad debt. A few decent recoveries in the last couple of days but my total earnings still languish below where they were in September '17.
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sl75
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Post by sl75 on Apr 18, 2019 9:40:24 GMT
FC has made it quite simple for me this time.
In the period, for every £1 net income received I have acquired £2.15 eligible bad debt. And I thought £1.36 bad debt to every £1 interest was bad. Everything eligible is in the selling queue now. Just to give you a bit of hope for future tax years...
For 2018/19 I had £0 bad debt (it all went bad in earlier tax years), but £9.74 of recoved capital for every £1 of interest (albeit this interest being about 1% of the interest I'd been getting during the last tax year I was fully invested).
Recoveries are likely to continue slowly but steadily over the next few years.
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rogerthat
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Post by rogerthat on Apr 18, 2019 11:12:07 GMT
And I thought £1.36 bad debt to every £1 interest was bad. Everything eligible is in the selling queue now. Just to give you a bit of hope for future tax years...
For 2018/19 I had £0 bad debt (it all went bad in earlier tax years), but £9.74 of recoved capital for every £1 of interest (albeit this interest being about 1% of the interest I'd been getting during the last tax year I was fully invested).
Recoveries are likely to continue slowly but steadily over the next few years.
I stopped with FC when the black box blind 'investing' was introduced but historically since 2011 recoveries have been a tad over 41%..and at the rate some of them are still dribbling back I suspect I wont be around on Planet Earth to see their end point.
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Post by kcrane on Apr 18, 2019 12:51:04 GMT
As near as makes no difference I had £1 of bad debt for every £1 of interest, so a zero return.
I've sold as much as I can and the cash is out, but still have £12k in of which £7k is listed for sale and has been for over 30 days. The other £5k I can't sell will I suspect will become bad debt.
I did have some reasonable years with FC early on, but this year (taking on anything to get the listing away?) has been poor.
Question I have for myself is, if FC is so bad, to what extent does that reflect what to expect from Zopa and RS? Are their target markets and lending criteria sufficiently different to avoid the same fate?
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r00lish67
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Post by r00lish67 on Apr 18, 2019 12:57:40 GMT
As near as makes no difference I had £1 of bad debt for every £1 of interest, so a zero return. I've sold as much as I can and the cash is out, but still have £12k in of which £7k is listed for sale and has been for over 30 days. The other £5k I can't sell will I suspect will become bad debt. I did have some reasonable years with FC early on, but this year (taking on anything to get the listing away?) has been poor. Question I have for myself is, if FC is so bad, to what extent does that reflect what to expect from Zopa and RS? Are their target markets and lending criteria sufficiently different to avoid the same fate? Sorry, just to clarify, would the unsellable £5k be potential bad debt on top of the zero return you mention earlier? How much did you start with roughly? To answer the question from yourself to.err.. yourself - they're likely to be partially correlated, but obviously have different lending criteria and perform types of lending (e.g. RS does property too) so somewhat difficult to specify without the reams of data they're no longer willing to give us. Welcome btw 
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cb25
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Post by cb25 on Apr 18, 2019 13:03:37 GMT
As near as makes no difference I had £1 of bad debt for every £1 of interest, so a zero return. I've sold as much as I can and the cash is out, but still have £12k in of which £7k is listed for sale and has been for over 30 days. The other £5k I can't sell will I suspect will become bad debt. I did have some reasonable years with FC early on, but this year (taking on anything to get the listing away?) has been poor. Question I have for myself is, if FC is so bad, to what extent does that reflect what to expect from Zopa and RS? Are their target markets and lending criteria sufficiently different to avoid the same fate? My Zopa returns were even worse than my FC ones in 2018. Having been selling out of Zopa since last quarter of 2017 when sizeable bad debts just kept occurring month after month.
RS - you can at least choose the rates you lend at. I'm currently withdrawing money from RS as/when it repays as they seem to have a surplus of lenders over borrowers at the moment.
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