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Post by andrewholgate on Dec 12, 2014 19:15:59 GMT
All
we have been faced with an issue on withholding tax. If anyone is interested the relevant sections of the tax law are the Income Tax Act 2007 sections 874 and 933. In essence these laws affect all P2P lenders and not just AC, it is only the fact we have lent to a sophisticated business who have good tax advisors that we have been questioned on this.
there is a statement on the website regarding the position. I am personally meeting HMRC on Wednesday to discuss this and I have been in long discussions with them all ready. By the letter of the law the borrower is right to withhold tax, but HMRC to date have never enforced this in the P2P market. The borrower is correct in their stance and there is nothing AC can do. If you do not pay tax, you will have to claim this back from HMRC.
For clarity, Every company that is borrowing on a P2P platform should withhold tax. When the lenders are private individuals That is the law.
i hope to have a definitive statement next week on how we proceed. However HMRC have said that they plan on bringing in new laws regarding P2P in 2017. This seems silly given they plan on allowing P2P NISAs next year. Clarity is needed now.
I'm not making further comment until I know more and this may not be until the New Year.
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sl75
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Post by sl75 on Dec 12, 2014 23:30:35 GMT
there is a statement on the website regarding the position. Did anyone find this yet? I didn't see such a statement on: - the front page - the page immediately after logging in - the "tax statement" page - FAQs searching for "tax" - blog - press releases Perhaps I'll stumble upon it later? Edit: ... and as I continue my catchup, I discovered which loan it was, and didn't find any new comment from AC on the Q&A for the loan in question either - although plenty of comment on this forum to catch up with.
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acorn
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Post by acorn on Dec 12, 2014 23:49:37 GMT
Try:-
Browse Loans
Important Info for Lenders
Key Investor Info
Calculating Your Tax Liability
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Post by chris on Dec 13, 2014 7:53:35 GMT
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pikestaff
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Post by pikestaff on Dec 13, 2014 8:49:59 GMT
When I saw the reference to a "statement" I was expecting exactly that. I went looking for one both under the specific loan and on the main website and did not find one.
After a while it dawned on me that Andrew was referring to the text under "key investor information" but that's not quite the same thing. It would have been better to say something along the lines of "we have updated Key Investor Information with our current understanding of the position".
Be that as it may, I'm happy it's there and happy with the speed with which AC are reacting. It will be interesting to see how this plays out for the sector as a whole.
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Post by jevans4949 on Dec 13, 2014 9:35:58 GMT
Income Tax Act 2007 ... Good Old Gordon Brown.
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shimself
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Post by shimself on Dec 13, 2014 10:02:20 GMT
Income Tax Act 2007 ... Good Old Gordon Brown. That's not fair, p2b didn't exist in 2007. HMRC should have done something about this in the last couple of years. I blame Gideon.
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pikestaff
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Post by pikestaff on Dec 13, 2014 12:08:14 GMT
Income Tax Act 2007 ... Good Old Gordon Brown. That's not fair, p2b didn't exist in 2007. HMRC should have done something about this in the last couple of years. I blame Gideon. Not even slightly fair. The 2007 Act merely updated a requirement that has been there pretty much forever.
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acorn
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Post by acorn on Dec 13, 2014 14:59:45 GMT
i see that all the loan overviews have a "tax retention" status added on to the end now.
The Govt. takes 5 years + to fail to get its a**e in gear whilst Chris snaps his fingers whilst playing Peek-a-boo with his beautiful babe and it's done.
(Yeah, yeah, I know there's a slight difference in scale!)
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shimself
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Post by shimself on Dec 13, 2014 15:52:11 GMT
i see that all the loan overviews have a "tax retention" status added on to the end now. The Govt. takes 5 years + to fail to get its a**e in gear whilst Chris snaps his fingers whilst playing Peek-a-boo with his beautiful babe and it's done. (Yeah, yeah, I know there's a slight difference in scale!) I wonder if any of the platforms foresaw this. If not what an indictement of their legal advisers and accountants.
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Post by oldatheist on Dec 13, 2014 16:12:28 GMT
I wonder if any of the platforms foresaw this. If not what an indictement of their legal advisers and accountants. It apears that this has taken a lone borrower on one platform to bring this out, so no p2p platform has really got a grip of this. RS and Zopa can be forgiven as this does not apply to personal loans. I see some serious difficulties in borrowers trying to administer this, especially where the loan is split between personal and business lenders and loan parts change hands during the loan period.
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shimself
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Post by shimself on Dec 13, 2014 17:29:24 GMT
I wonder if any of the platforms foresaw this. If not what an indictement of their legal advisers and accountants. It apears that this has taken a lone borrower on one platform to bring this out, so no p2p platform has really got a grip of this. RS and Zopa can be forgiven as this does not apply to personal loans. I see some serious difficulties in borrowers trying to administer this, especially where the loan is split between personal and business lenders and loan parts change hands during the loan period. Yes well I could imagine someone or two might have unearthed this and kept schtum seeing as it's not possible to administer it.
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Post by Duane Dibley on Dec 13, 2014 19:27:16 GMT
For those not in the know, the loan in question is #143 Wind Turbine Portfolio.
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acorn
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Post by acorn on Dec 13, 2014 21:11:58 GMT
I think it will be fairly easy for Assetz to record the tax deducted on the tax statement so that it can be reclaimed at the end of the financial year. My frustration is with the "one size fits all" policy that sees the Gov't taking money from me that I don't owe, making me wait up to a year and denying me the ability to re-invest it instantly with a view to gaining a small amount of financial security in my old age. Yes, the numbers involved are peanuts at this stage, but peanuts, like acorns, grow into trees with the right care and attention. I see such breath-taking waste and excess at Govt. level that I know I will look after it a darned sight better than they will! Rant over!  |
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hendragon
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Post by hendragon on Dec 13, 2014 21:48:34 GMT
why would the record of tax paid come from AC? The tax has been taken by the borrower therefore they need to supply each lender whose tax they hold with a suitable statement.To my mind the record keeping and proof (as with VAT) should come from the entity that takes the tax
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