qwakuk
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Post by qwakuk on Apr 30, 2022 19:07:51 GMT
Been working through the P2P platforms today and found a discrepancy on the PropLend certificate.
I have the interest set to auto withdraw at the end of the month so easy enough to add up.
The interest per the certificate is approx £70 more than what I actually received in the tax year. Quick check of 2021 and the difference was more like £6 but it is the interest earned between 1st and 5th April 2021.
My monthly interest is less than £50 as mainly got ISA investments on PropLend so something does not add up.
Does anyone else actually check the certificates for accuracy ?
Found any issues ?
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Post by Ace on Apr 30, 2022 20:50:51 GMT
Been working through the P2P platforms today and found a discrepancy on the PropLend certificate. I have the interest set to auto withdraw at the end of the month so easy enough to add up. The interest per the certificate is approx £70 more than what I actually received in the tax year. Quick check of 2021 and the difference was more like £6 but it is the interest earned between 1st and 5th April 2021. My monthly interest is less than £50 as mainly got ISA investments on PropLend so something does not add up. Does anyone else actually check the certificates for accuracy ? Found any issues ? I checked mine and it was 5p overstated (£369.90 stated, but £369.85 actual). I had assumed it was due to some rounding of several sub-one-pence rounding/ truncation, and wasn't enough to bother investigating further.
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Post by Ace on Apr 30, 2022 20:55:04 GMT
Been working through the P2P platforms today and found a discrepancy on the PropLend certificate. I have the interest set to auto withdraw at the end of the month so easy enough to add up. The interest per the certificate is approx £70 more than what I actually received in the tax year. Quick check of 2021 and the difference was more like £6 but it is the interest earned between 1st and 5th April 2021. My monthly interest is less than £50 as mainly got ISA investments on PropLend so something does not add up. Does anyone else actually check the certificates for accuracy ? Found any issues ? Just a thought, as you were going off end of month withdrawals... did you remember to adjust for the fact that the tax year starts on April 6th and ends on April 5th?
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qwakuk
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Post by qwakuk on Apr 30, 2022 21:12:52 GMT
Been working through the P2P platforms today and found a discrepancy on the PropLend certificate. I have the interest set to auto withdraw at the end of the month so easy enough to add up. The interest per the certificate is approx £70 more than what I actually received in the tax year. Quick check of 2021 and the difference was more like £6 but it is the interest earned between 1st and 5th April 2021. My monthly interest is less than £50 as mainly got ISA investments on PropLend so something does not add up. Does anyone else actually check the certificates for accuracy ? Found any issues ? Just a thought, as you were going off end of month withdrawals... did you remember to adjust for the fact that the tax year starts on April 6th and ends on April 5th?Thanks for the replies Ace, yes considered 1st and 5th April 2022, drops the difference to about £50 Emailed them so hopefully get a reply some time next week
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bababill
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Post by bababill on May 1, 2022 7:33:41 GMT
Mine was incorrect by a three digit figure both verified by myself and accountants.
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qwakuk
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Post by qwakuk on May 1, 2022 8:12:01 GMT
Mine was incorrect by a three digit figure both verified by myself and accountants. The problem is that they will probably have reported that figure to HMRC and if you get selected for enquiry, you got a lot of explaining to do to unravel it all.
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eeyore
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Post by eeyore on May 1, 2022 10:05:55 GMT
Been working through the P2P platforms today and found a discrepancy on the PropLend certificate. I have the interest set to auto withdraw at the end of the month so easy enough to add up. The interest per the certificate is approx £70 more than what I actually received in the tax year. Quick check of 2021 and the difference was more like £6 but it is the interest earned between 1st and 5th April 2021. My monthly interest is less than £50 as mainly got ISA investments on PropLend so something does not add up. Does anyone else actually check the certificates for accuracy ? Found any issues ? Just a thought: Have you allowed for Proplend's "Loan Interest Fee" of 10% on every interest payment? The funds paid to us every month will be the net interest AFTER the fee has been deducted. It's my understanding that Proplend use the gross interest (BEFORE the fee deduction) to sum the interest for the year. This means we pay tax on Proplend's fees!
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bababill
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Post by bababill on May 1, 2022 13:38:03 GMT
Mine was incorrect by a three digit figure both verified by myself and accountants. The problem is that they will probably have reported that figure to HMRC and if you get selected for enquiry, you got a lot of explaining to do to unravel it all. I would’ve thought HMRC would be happy as I am paying extra then what was reported?
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qwakuk
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Post by qwakuk on May 2, 2022 8:37:34 GMT
20 hours ago eeyore said:
qwakuk Avatar
21 hours ago qwakuk said:
Well spotted, just realised that is near enough the difference, not checked it to the penny but grossing up the figure I received by 10% gives me a figure within a couple of quid to the figure on the cert.
Was logged on to check what interest I should expect in my bank account in the next few days and saw the 10% fee which is IGNORED (forgotten about) in my figures as obviously I can only transfer the net amount back to my bank account !
Will leave it with them to see what explanation they come back with.
PS Apologies eeyore, quoted the wrong message !
If you copy-and-paste the text of the post into a new post in your original thread, and then delete this post, you'll keep things nice and tidy!
PS: You need to gross-up by 11% or, better still, take 10% off the Certificate total; you should, in theory, get a match within pence.
Proplend will respond with something along the lines of: "This is what HMRC demand we do - it's a legal requirement of the way the loan agreement is set-up." I've a vague recollection there was some indication from Proplend a year or two back that they would change the loan agreement so that we wouldn't have to pay tax on interest we don't get - obviously, nothing has come of that.
NOW posted to correct thread
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eeyore
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Post by eeyore on May 2, 2022 9:28:57 GMT
Well spotted, just realised that is near enough the difference, not checked it to the penny but grossing up the figure I received by 10% gives me a figure within a couple of quid to the figure on the cert. Was logged on to check what interest I should expect in my bank account in the next few days and saw the 10% fee which is IGNORED (forgotten about) in my figures as obviously I can only transfer the net amount back to my bank account ! Will leave it with them to see what explanation they come back with. PS Apologies eeyore, quoted the wrong message ! Thanks for moving your post back into this thread. You need to gross-up by 11% or, better still, take 10% off the Certificate total; you should, in theory, get a match within pence. Proplend will respond with something along the lines of: " This is what HMRC demand we do - it's a legal requirement of the way the loan agreement is set-up." I've a vague recollection there was some indication from Proplend a year or two back that they would change the loan agreement so that we wouldn't have to pay tax on interest we don't get - obviously, nothing has come of that.
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qwakuk
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Post by qwakuk on May 2, 2022 10:25:17 GMT
Tidied up the posts, dividing by 0.9 gets you back to the full figure
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ilmoro
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'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 May 2, 2022 11:31:42 GMT
Been working through the P2P platforms today and found a discrepancy on the PropLend certificate. I have the interest set to auto withdraw at the end of the month so easy enough to add up. The interest per the certificate is approx £70 more than what I actually received in the tax year. Quick check of 2021 and the difference was more like £6 but it is the interest earned between 1st and 5th April 2021. My monthly interest is less than £50 as mainly got ISA investments on PropLend so something does not add up. Does anyone else actually check the certificates for accuracy ? Found any issues ? Just a thought: Have you allowed for Proplend's "Loan Interest Fee" of 10% on every interest payment? The funds paid to us every month will be the net interest AFTER the fee has been deducted. It's my understanding that Proplend use the gross interest (BEFORE the fee deduction) to sum the interest for the year. This means we pay tax on Proplend's fees! Lenders are paid the interest gross and then the PL fee is deducted that is why the full sum has to be declared to HMRC. The fee is payable under PL-lender contract (t&C's) not the loan contract AIUI. Most other platforms charge to borrower a fee/interest spread under the loan contract but that means less alignment of interest & can make things complicated in event of platform failure.
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Greenwood2
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Post by Greenwood2 on May 2, 2022 17:03:46 GMT
Just a thought: Have you allowed for Proplend's "Loan Interest Fee" of 10% on every interest payment? The funds paid to us every month will be the net interest AFTER the fee has been deducted. It's my understanding that Proplend use the gross interest (BEFORE the fee deduction) to sum the interest for the year. This means we pay tax on Proplend's fees! Lenders are paid the interest gross and then the PL fee is deducted that is why the full sum has to be declared to HMRC. The fee is payable under PL-lender contract (t&C's) not the loan contract AIUI. Most other platforms charge to borrower a fee/interest spread under the loan contract but that means less alignment of interest & can make things complicated in event of platform failure. At least if you pay fees you are a genuine customer for the FCA to consider, we are in a rather vague position on many (failed) platforms.
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ilmoro
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Post by ilmoro on May 2, 2022 17:35:46 GMT
Lenders are paid the interest gross and then the PL fee is deducted that is why the full sum has to be declared to HMRC. The fee is payable under PL-lender contract (t&C's) not the loan contract AIUI. Most other platforms charge to borrower a fee/interest spread under the loan contract but that means less alignment of interest & can make things complicated in event of platform failure. At least if you pay fees you are a genuine customer for the FCA to consider, we are in a rather vague position on many (failed) platforms. Nope ... 100% genuine customers ... not a valid excuse. Fully acknowledged by the FCA in Lendy case as submitted issues in relation to consumer law
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Greenwood2
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Post by Greenwood2 on May 2, 2022 18:50:52 GMT
At least if you pay fees you are a genuine customer for the FCA to consider, we are in a rather vague position on many (failed) platforms. Nope ... 100% genuine customers ... not a valid excuse. Fully acknowledged by the FCA in Lendy case as submitted issues in relation to consumer law I thought to be a consumer/customer you usually have to pay for some service or object, the borrowers pay fees so are easily defined as customers of the platforms. I haven't seen the Lendy case bit you are referring to, I hope this does clarify lenders as customers any link?
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