mikes1531
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Post by mikes1531 on Feb 1, 2015 22:01:41 GMT
If it does come to pass that P2P platforms start paying interest net of basic-rate tax, would that prompt a definitive answer to the question of whether cashback payments are income or not? AIUI, some platforms say they are and some say they're not, so it's not clear whether we're supposed to report them to HMRC so they'd be taxed. But if interest starts being paid net, then it should become much clearer -- if there's a tax deduction then they're taxable, and if there isn't then they're not.
Or is it just wishful thinking that this issue might be sorted in the near term?
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pikestaff
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Post by pikestaff on Feb 2, 2015 0:19:21 GMT
If it does come to pass that P2P platforms start paying interest net of basic-rate tax, would that prompt a definitive answer to the question of whether cashback payments are income or not? AIUI, some platforms say they are and some say they're not, so it's not clear whether we're supposed to report them to HMRC so they'd be taxed. But if interest starts being paid net, then it should become much clearer -- if there's a tax deduction then they're taxable, and if there isn't then they're not. Or is it just wishful thinking that this issue might be sorted in the near term? Almost certainly wishful thinking. I expect the legislation to re quire tax to be deducted on interest, just as it is on on bank interest. I don't expect it to touch on anything difficult
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