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Post by Ace on Jul 22, 2023 15:03:26 GMT
For clarity, Kuflink's position on the flexibility of their ISA is (or was when I last corresponded with them back in Jan/Feb this year); their ISA is flexible for current year funds but not flexible for past year funds.
This correspondence made it obvious that, even after referring to the relevant team, Kuflink had a poor understanding of the ISA flexibility rules (they quoted a restriction that was blatantly untrue).
I tested withdrawing previous years ISA funds and can confirm that there was no way to flexibly replace them.
I couldn't test the replacement of current year funds as I've never had any current year ISA funds with Kuflink, but I belive them that they can be flexibly replaced.
They did say that they would consider implementing past year flexibility in the future. So, the position could change. They said that they would inform investors if it did.
I'm not sure whether their half-arsed implementation is within the rules; I suspect not. I don't know of any other organisation with the same half-arsed implementation.
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Jul 22, 2023 15:36:26 GMT
For clarity, Kuflink's position on the flexibility of their ISA is (or was when I last corresponded with them back in Jan/Feb this year); their ISA is flexible for current year funds but not flexible for past year funds. This correspondence made it obvious that, even after referring to the relevant team, Kuflink had a poor understanding of the ISA flexibility rules (they quoted a restriction that was blatantly untrue). I tested withdrawing previous years ISA funds and can confirm that there was no way to flexibly replace them. I couldn't test the replacement of current year funds as I've never had any current year ISA funds with Kuflink, but I belive them that they can be flexibly replaced. They did say that they would consider implementing past year flexibility in the future. So, the position could change. They said that they would inform investors if it did. I'm not sure whether their half-arsed implementation is within the rules; I suspect not. I don't know of any other organisation with the same half-arsed implementation. There aren't really rules on how flexibility is offered. Flexibility is entirely discretionary so I don't see an issue on Kuflink doing it on current year only. It's the management of flexibility, particularly reporting, where there are rules. The issue would be if a lender subscribed to a flexible ISA under terms then it ceased to be flexible after a year without clear notice. I doubt most lenders know about flexibility as it isn't in t&C's or promoted AFAICS.
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IFISAcava
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Post by IFISAcava on Jul 23, 2023 9:10:18 GMT
I don't know what overheads companies face for flexible ISA v non-flexible but I've no time for the latter, it's unsubtle way to discourage investors from removing their money. Better than no ISA at all though.
Elfin market and HNW lending are also non-flexible and I don't have anything invested with them currently !
HNW is definitely flexible. I've replaced flexibly withdrawn funds from their ISA without affecting my allowance. The statement specifically indicates a reinjection of flexibly withdrawn funds. same here, when I still had an ISA account there
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scooter
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Post by scooter on Nov 6, 2023 12:46:50 GMT
Hi, my question to Kuflink was "if I have only ever put ISA transfers into my account, how can i have funds in the general wallet, within an ISA wrapper."
"Reserve Cashback is a calculation of interest from the moment you reserve funds to the moment the deal goes live. It is classed as a Bonus Payment paid by us, and bonuses are not tax efficient. Our bonuses are not part of the ISA, therefore not paid to your ISA wallet. We may implement changes in the future for the funds to be paid into ISA wallets if relates to an ISA investment however, for now the above is how our system works."
So is the interest, which is a bonus, but only paid after investment like all the other interest, taxable interest or taxable bonus, or not taxable because it is within the ISA wrapper? If it's within the ISA wrapper and generated from prior year funds why can't I invest it unless I have £500 of it?
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Post by Ace on Nov 6, 2023 13:30:35 GMT
Hi, my question to Kuflink was "if I have only ever put ISA transfers into my account, how can i have funds in the general wallet, within an ISA wrapper." " Reserve Cashback is a calculation of interest from the moment you reserve funds to the moment the deal goes live. It is classed as a Bonus Payment paid by us, and bonuses are not tax efficient. Our bonuses are not part of the ISA, therefore not paid to your ISA wallet.We may implement changes in the future for the funds to be paid into ISA wallets if relates to an ISA investment however, for now the above is how our system works."So is the interest, which is a bonus, but only paid after investment like all the other interest, taxable interest or taxable bonus, or not taxable because it is within the ISA wrapper? If it's within the ISA wrapper and generated from prior year funds why can't I invest it unless I have £500 of it? It's complicated... Here's a layman's understanding from reading around the subject some time ago, so, I could be wrong, or things may have changed since I investigated. The reserve cashback from your ISA can't be paid into your ISA account because: - It's not interest paid on the ISA investment. It's a voluntary payment made by Kuflink on those funds before the loan starts as a reward for you committing to the loan (that just happens to be the same amount as you would have earned in interest if the loan had started on your date of signing up to that loan)
- If it was paid into your ISA it would have to count as new ISA funds in the current year, and Kuflink can't know whether that would break the ISA rules. I.e. whether you've already invested your full £20k ISA allowance elsewhere this year, or whether you've already contributed to an alternative IFISA this year.
Is it taxable? This topic was previously discussed in an AC thread here. I recall that there was some agreement that referral bonuses paid to a referrer are taxable, but those paid to a referee are not. Similarly, I believe that cashback payments made by banks as a percentage of spending are also not taxable. I treat Kuflink's reserve cashback as not taxable, and so do not declare it. I've not been pulled up on this so far, which I fully accept is not proof of anything. As I said, its complicated.
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Post by Ace on Nov 6, 2023 18:28:43 GMT
Hi, my question to Kuflink was "if I have only ever put ISA transfers into my account, how can i have funds in the general wallet, within an ISA wrapper." " Reserve Cashback is a calculation of interest from the moment you reserve funds to the moment the deal goes live. It is classed as a Bonus Payment paid by us, and bonuses are not tax efficient. Our bonuses are not part of the ISA, therefore not paid to your ISA wallet.We may implement changes in the future for the funds to be paid into ISA wallets if relates to an ISA investment however, for now the above is how our system works."So is the interest, which is a bonus, but only paid after investment like all the other interest, taxable interest or taxable bonus, or not taxable because it is within the ISA wrapper? If it's within the ISA wrapper and generated from prior year funds why can't I invest it unless I have £500 of it? It's complicated... Here's a layman's understanding from reading around the subject some time ago, so, I could be wrong, or things may have changed since I investigated. The reserve cashback from your ISA can't be paid into your ISA account because: - It's not interest paid on the ISA investment. It's a voluntary payment made by Kuflink on those funds before the loan starts as a reward for you committing to the loan (that just happens to be the same amount as you would have earned in interest if the loan had started on your date of signing up to that loan)
- If it was paid into your ISA it would have to count as new ISA funds in the current year, and Kuflink can't know whether that would break the ISA rules. I.e. whether you've already invested your full £20k ISA allowance elsewhere this year, or whether you've already contributed to an alternative IFISA this year.
Is it taxable? This topic was previously discussed in an AC thread here. I recall that there was some agreement that referral bonuses paid to a referrer are taxable, but those paid to a referee are not. Similarly, I believe that cashback payments made by banks as a percentage of spending are also not taxable. I treat Kuflink's reserve cashback as not taxable, and so do not declare it. I've not been pulled up on this so far, which I fully accept is not proof of anything. As I said, its complicated. 4thWay have a good article on this here. See the section titled "Is peer-to-peer lending cashback taxable?".
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scooter
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Post by scooter on Nov 7, 2023 10:53:59 GMT
Thanks for your insight as ever. It seems to me that in line with the old HMRC slogan "tax does not have to be taxing"
Unless Kuflink get involved.
They pay a "bonus" which is the same rate as the interest would be on funds "committed" which I cannot back out of and would not be possible without the ISA investment in the first place. It is not taxable, but also not useable.
It should be earnings on prior year ISA funds. Just like when we get bank interest on uninvested funds from Proplend. They don't worry about which pot to put that in. They dont worry which years ISA it relates to.
My main bugbear no matter how small it is is that i can't use it.
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rscal
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Post by rscal on Nov 19, 2023 15:13:20 GMT
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rscal
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Post by rscal on Feb 8, 2024 11:40:51 GMT
Just noticed that when you sell your investment within the ISA the fee paid leaves your account (since it has to be 'withdrawn') and creates a corresponding amount of "remaining allowance" to be reinvested from General Wallet (Just one for you ISA-nerds out dere!)
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Post by elephantrosie on Apr 3, 2024 3:54:53 GMT
I have a Kuflink non-ISA account, but cannot seem to see how to deposit cash into its ISA account. Please could someone guide me? I have messaged Kuflink for help too.
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Post by Ace on Apr 3, 2024 6:54:14 GMT
I have a Kuflink non-ISA account, but cannot seem to see how to deposit cash into its ISA account. Please could someone guide me? I have messaged Kuflink for help too. I haven't done it for a while, but from memory I think I deposited cash to standard account then used the Wallet Transfer function to move it to an ISA wallet. EDIT: I think that you need to open an ISA account first, otherwise the ISA wallet won't be available in the Wallet Transfer list.
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Post by elephantrosie on Apr 3, 2024 7:09:05 GMT
I have a Kuflink non-ISA account, but cannot seem to see how to deposit cash into its ISA account. Please could someone guide me? I have messaged Kuflink for help too. I haven't done it for a while, but from memory I think I deposited cash to standard account then used the Wallet Transfer function to move it to an ISA wallet. EDIT: I think that you need to open an ISA account first, otherwise the ISA wallet won't be available in the Wallet Transfer list. thank you for the reply. do i have to sign in to my non-ISA account first to open an ISA account OR do i open an ISA account separately?
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firedog
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Post by firedog on Apr 3, 2024 7:13:21 GMT
do i have to sign in to my non-ISA account first to open an ISA account OR do i open an ISA account separately? Pretty sure I opened my ISA while logged in to my standard account. As Ace says, once the ISA is open, it becomes an option when transferring funds from your wallet.
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Post by elephantrosie on Apr 3, 2024 7:13:49 GMT
when logged in my non-ISA account and I clicked on IF-ISA product, it brings me to my non-ISA account front page. This is really confusing.
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Post by Ace on Apr 3, 2024 7:24:50 GMT
when logged in my non-ISA account and I clicked on IF-ISA product, it brings me to my non-ISA account front page. This is really confusing. There's a link on the top line in your Standard account to open an ISA account "Sign Up IF-ISA".
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