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Post by bracknellboy on Nov 5, 2020 11:21:42 GMT
Never had this problem before in 30+ years of doing tax returns. But i've just got a letter from HMRC stating that my investment income declaration doesn't match the information they have received from financial institutions.
Anyone been through this process before and have any guidance / suggestions on how to handle ? Oviously I will be cross checking with my records. In this day and age with banks not sending out flaming certs in many cases, its always possible that I have missed some off inadvertently. Its also possible that the returns from the P2P do not include writedowns, only interest.
It would help if they have this information in the first place that they flaming publish it / make it available at the poit you are doing your tax return.
I am officially concerned at this point.
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james100
Member of DD Central
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Post by james100 on Nov 5, 2020 12:16:46 GMT
Never had this problem before in 30+ years of doing tax returns. But i've just got a letter from HMRC stating that my investment income declaration doesn't match the information they have received from financial institutions.
Anyone been through this process before and have any guidance / suggestions on how to handle ? Oviously I will be cross checking with my records. In this day and age with banks not sending out flaming certs in many cases, its always possible that I have missed some off inadvertently. Its also possible that the returns from the P2P do not include writedowns, only interest.
It would help if they have this information in the first place that they flaming publish it / make it available at the poit you are doing your tax return.
I am officially concerned at this point.
I have had some bother with HMRC a very long time ago. I'd done nothing wrong but I still recall how stressful it was. I ended up getting a decent refund(!) but the whole thing was quite memorable. I probably pushed my luck asking for a formal apology. First thing is to verify exactly what this issue is....check your records meticulously versus submissions and any notes you provided where your submission deviated from institutional records. Check for administrative glitches e.g. did you submit correct numbers but in wrong section (e.g. interest as dividends, foreign source as uk source etc?). Don't panic but don't delay. If you find the answer lies on your side, great, if not you will be able to contact them with the necessary paperwork in front of you, ask what specific piece of info is wrong and send it over.
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jonno
Member of DD Central
nil satis nisi optimum
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Post by jonno on Nov 5, 2020 12:48:14 GMT
Never had this problem before in 30+ years of doing tax returns. But i've just got a letter from HMRC stating that my investment income declaration doesn't match the information they have received from financial institutions.
Anyone been through this process before and have any guidance / suggestions on how to handle ? Oviously I will be cross checking with my records. In this day and age with banks not sending out flaming certs in many cases, its always possible that I have missed some off inadvertently. Its also possible that the returns from the P2P do not include writedowns, only interest.
It would help if they have this information in the first place that they flaming publish it / make it available at the poit you are doing your tax return.
I am officially concerned at this point.
I had a similar issue three years ago. Looking back, the first and best thing I did was speak to the contact given on their communication (which I assume they've given to you) which enabled me quickly to develop a good relationship with a very professional and courteous individual. It quickly identified what the "problem" was and what I needed to do to address it which involved sending them some additional documentation. But please don't delay.
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Post by bracknellboy on Nov 5, 2020 12:50:23 GMT
Workikng so can't look at this too much right now. Its possible (likely looking at what they've sent) that I may have missed off some bank interest.
However, by far and away the biggest discrepency is on flaming p2p interest. Though have thrown back at me numbers which are the GROSS interest without taking account of losses. I included the NET income (after both formally declared losses and any which I chose to include myself e.g. with Thincats if I recall).
So for example for AC they have listed a number x, which is the "interest income number", not Y which is the "total declarable income" number from the AC tax return.
On my tax return I simply lumped my net p2p (income - losses)in with my bank interest and put that in as one number. Which I think is the right thing to do.
What is really annoying me right now, it is sahing 'the investment income information we recieved does not match..." and then gives a list of stuff, it mentions somewhere about how I can change my tax return, but nowhere does it say "if this is incorrect please contact us" so I'm not sure what my next step is. EDIT: actually, I'll take that bit back. I've now found the "if you need to speak to us" bit.
Anyway, , I could have done withouth this right now.
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Greenwood2
Member of DD Central
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Post by Greenwood2 on Nov 5, 2020 12:51:27 GMT
Never had this problem before in 30+ years of doing tax returns. But i've just got a letter from HMRC stating that my investment income declaration doesn't match the information they have received from financial institutions.
Anyone been through this process before and have any guidance / suggestions on how to handle ? Oviously I will be cross checking with my records. In this day and age with banks not sending out flaming certs in many cases, its always possible that I have missed some off inadvertently. Its also possible that the returns from the P2P do not include writedowns, only interest.
It would help if they have this information in the first place that they flaming publish it / make it available at the poit you are doing your tax return.
I am officially concerned at this point.
I had one about declaration of P2P income, quite scary. I chatted to a very nice (sounding guy) who seemed to agree with me and asked for a simple letter explaining what we had discussed, after which I got a slightly nasty letter saying that they wanted much more information (more scary), but quoting some figures they had for my P2P income. I sent them back 'chapter and verse' of all my P2P income, losses and recoveries and compared that to the information they had sent me. Theirs was incomplete with some platforms missing completely and some figures were different from what the platforms had given me(!). But it was mainly one platform that hadn't declared any unrecoverable loans where I had claimed (I had explained all this to the 'nice' guy on the phone and was what I explained in the first letter). I then got a fairly nice letter saying they were happy. Edit: After your subsequent post. I now put a note saying the amount I declared for P2P income, includes losses of £xxx and recoveries of £yyy. I am now very careful with the P2P stuff! I have posted a couple of times on here when people have said that HMRC won't check, they do!
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Post by Ace on Nov 5, 2020 13:18:56 GMT
Workikng so can't look at this too much right now. Its possible (likely looking at what they've sent) that I may have missed off some bank interest.
However, by far and away the biggest discrepency is on flaming p2p interest. Though have thrown back at me numbers which are the GROSS interest without taking account of losses. I included the NET income (after both formally declared losses and any which I chose to include myself e.g. with Thincats if I recall).
So for example for AC they have listed a number x, which is the "interest income number", not Y which is the "total declarable income" number from the AC tax return.
On my tax return I simply lumped my net p2p (income - losses)in with my bank interest and put that in as one number. Which I think is the right thing to do.
What is really annoying me right now, it is sahing 'the investment income information we recieved does not match..." and then gives a list of stuff, it mentions somewhere about how I can change my tax return, but nowhere does it say "if this is incorrect please contact us" so I'm not sure what my next step is. EDIT: actually, I'll take that bit back. I've now found the "if you need to speak to us" bit.
Anyway, , I could have done withouth this right now.
I think the bit I've highlighted above is where your mistake lies. P2P interest doesn't go in the same box as your bank interest, it goes on form SA101. 4thway have an informative guide here. See the bit about "How do I complete my self assessment for peer-to-peer lending tax on interest?" So, it looks to HMRC that you haven't declared any P2P income.
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Post by bracknellboy on Nov 5, 2020 13:31:38 GMT
Workikng so can't look at this too much right now. Its possible (likely looking at what they've sent) that I may have missed off some bank interest.
However, by far and away the biggest discrepency is on flaming p2p interest. Though have thrown back at me numbers which are the GROSS interest without taking account of losses. I included the NET income (after both formally declared losses and any which I chose to include myself e.g. with Thincats if I recall).
So for example for AC they have listed a number x, which is the "interest income number", not Y which is the "total declarable income" number from the AC tax return.
On my tax return I simply lumped my net p2p (income - losses)in with my bank interest and put that in as one number. Which I think is the right thing to do.
What is really annoying me right now, it is sahing 'the investment income information we recieved does not match..." and then gives a list of stuff, it mentions somewhere about how I can change my tax return, but nowhere does it say "if this is incorrect please contact us" so I'm not sure what my next step is. EDIT: actually, I'll take that bit back. I've now found the "if you need to speak to us" bit.
Anyway, , I could have done withouth this right now.
I think the bit I've highlighted above is where your mistake lies. P2P interest doesn't go in the same box as your bank interest, it goes on form SA101. 4thway have an informative guide here. See the bit about "How do I complete my self assessment for peer-to-peer lending tax on interest?" So, it looks to HMRC that you haven't declared any P2P income. Interesting. I haven't stuck anything on an SA101 form for a few years. I've just lumped it in. Which I thought was now the valid thing to do.
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Post by dan1 on Nov 5, 2020 13:34:48 GMT
I think the bit I've highlighted above is where your mistake lies. P2P interest doesn't go in the same box as your bank interest, it goes on form SA101. 4thway have an informative guide here. See the bit about "How do I complete my self assessment for peer-to-peer lending tax on interest?" So, it looks to HMRC that you haven't declared any P2P income. Interesting. I haven't stuck anything on an SA101 form for a few years. I've just lumped it in. Which I though was not the valid thing to do. From www.gov.uk/guidance/peer-to-peer-lending
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Post by bracknellboy on Nov 5, 2020 13:34:50 GMT
Never had this problem before in 30+ years of doing tax returns. But i've just got a letter from HMRC stating that my investment income declaration doesn't match the information they have received from financial institutions.
Anyone been through this process before and have any guidance / suggestions on how to handle ? Oviously I will be cross checking with my records. In this day and age with banks not sending out flaming certs in many cases, its always possible that I have missed some off inadvertently. Its also possible that the returns from the P2P do not include writedowns, only interest.
It would help if they have this information in the first place that they flaming publish it / make it available at the poit you are doing your tax return.
I am officially concerned at this point.
I had one about declaration of P2P income, quite scary. I chatted to a very nice (sounding guy) who seemed to agree with me and asked for a simple letter explaining what we had discussed, after which I got a slightly nasty letter saying that they wanted much more information (more scary), but quoting some figures they had for my P2P income. I sent them back 'chapter and verse' of all my P2P income, losses and recoveries and compared that to the information they had sent me. Theirs was incomplete with some platforms missing completely and some figures were different from what the platforms had given me(!). But it was mainly one platform that hadn't declared any unrecoverable loans where I had claimed (I had explained all this to the 'nice' guy on the phone and was what I explained in the first letter). I then got a fairly nice letter saying they were happy. Edit: After your subsequent post. I now put a note saying the amount I declared for P2P income, includes losses of £xxx and recoveries of £yyy. I am now very careful with the P2P stuff! I have posted a couple of times on here when people have said that HMRC won't check, they do! Did you lump your P2P into single investment income i.e. simply include in with same number as your bank interest, or did u do it separately on a SA101 form as mentioned by Ace ?
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Post by bracknellboy on Nov 5, 2020 13:37:58 GMT
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jonno
Member of DD Central
nil satis nisi optimum
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Post by jonno on Nov 5, 2020 13:41:20 GMT
I had one about declaration of P2P income, quite scary. I chatted to a very nice (sounding guy) who seemed to agree with me and asked for a simple letter explaining what we had discussed, after which I got a slightly nasty letter saying that they wanted much more information (more scary), but quoting some figures they had for my P2P income. I sent them back 'chapter and verse' of all my P2P income, losses and recoveries and compared that to the information they had sent me. Theirs was incomplete with some platforms missing completely and some figures were different from what the platforms had given me(!). But it was mainly one platform that hadn't declared any unrecoverable loans where I had claimed (I had explained all this to the 'nice' guy on the phone and was what I explained in the first letter). I then got a fairly nice letter saying they were happy. Edit: After your subsequent post. I now put a note saying the amount I declared for P2P income, includes losses of £xxx and recoveries of £yyy. I am now very careful with the P2P stuff! I have posted a couple of times on here when people have said that HMRC won't check, they do! Did you lump your P2P into single investment income i.e. simply include in with same number as your bank interest, or did u do it separately on a SA101 form as mentioned by Ace ? I've always reported mine separately which actually was quite helpful in sorting my query out. I think there's a fair chance that this is at the root of your issue.
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Greenwood2
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Post by Greenwood2 on Nov 5, 2020 14:06:10 GMT
Did you lump your P2P into single investment income i.e. simply include in with same number as your bank interest, or did u do it separately on a SA101 form as mentioned by Ace ? I've always reported mine separately which actually was quite helpful in sorting my query out. I think there's a fair chance that this is at the root of your issue. I was putting it in the wrong place (with bank interest) but saying I had included P2P income and the amount in the notes (but not about losses and recoveries, which I just lumped in). They did also say to put it in the right place in future, but that didn't seem to be the main problem (and I forgot again the next year and still put it in the wrong place DOH!).
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Post by bracknellboy on Nov 5, 2020 14:30:26 GMT
Its not going to be limited to that by the looks of it. Yes the biggest number in the discrepency lies in the fact that they have lumped in gross P2P into the statement for "investment income" along with my banks, but there is also a discrepency in some of the bank numbers: I don't know the root of that but possibly where I had more than one account, and I've somehow missed one of the accounts for that institution. I seem to have 3 main culprits in that category i.e. where the sums they are stating are meaningfully higher than I allowed for. The P2P number though is around 3x greater than that problem.
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duck
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Post by duck on Nov 5, 2020 15:22:16 GMT
I don't know if this helps but as dan1 has said This is what I/my accountants have been doing since only Zopa existed and the figures have never been questioned (famous last words). Since relief has been available I have been 'self deeming' irrecoverable loans and making adjustments in subsequent years as necessary. So where 'bad debt' is shown on statements my figures do not tie in with these. My figures provided could not be further away from the platform statements. Whilst I gather tax certificates from the platforms that I use generally I do not use the figures provided since I have spreadsheets to cover every transaction and every 1p of interest. On the return everything is lumped together in box 3 on page 10 for me (gross amount before tax) after I have made the adjustment for bad debt. Best of luck sorting this out bracknellboy.
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Greenwood2
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Post by Greenwood2 on Nov 5, 2020 16:23:00 GMT
I don't know if this helps but as dan1 has said This is what I/my accountants have been doing since only Zopa existed and the figures have never been questioned (famous last words). Since relief has been available I have been 'self deeming' irrecoverable loans and making adjustments in subsequent years as necessary. So where 'bad debt' is shown on statements my figures do not tie in with these. My figures provided could not be further away from the platform statements. Whilst I gather tax certificates from the platforms that I use generally I do not use the figures provided since I have spreadsheets to cover every transaction and every 1p of interest. On the return everything is lumped together in box 3 on page 10 for me (gross amount before tax) after I have made the adjustment for bad debt. Best of luck sorting this out bracknellboy . Yup, I've been declaring P2P income since the start of Zopa, and I never had any trouble with HMRC... until I did!
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