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Post by mrclondon on Mar 19, 2015 13:16:31 GMT
On drawdown of the loans SS pay any interest accrued upto the end of the previous month, but post this with a transaction date of the last day of the previous month. For any loan drawn down between 6th April and 30th April this interest will be posted with a transaction date of 31st March ... which will be in the wrong tax year and hence render the tax statements wrong - for non corporate taxpayers tax is due in the year of receipt not as accrued. savingstream, are you aware of this issue, and have you plans to improve your processes to avoid it ? |
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Liz
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Post by Liz on Mar 19, 2015 13:50:58 GMT
With a guarantee to pay the interest, there is no reason to delay payment. PBL 16,17,18(17,18,19, cant remember) has about 4 months accrued interest due.
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mikes1531
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Post by mikes1531 on Mar 19, 2015 15:33:41 GMT
With a guarantee to pay the interest, there is no reason to delay payment. PBL 16,17,18(17,18,19, cant remember) has about 4 months accrued interest due. I expect the reason for the delay is that the money to pay the cashback/interest normally would come from the loan itself, so it isn't available until drawdown. I.e. the borrower takes a loan of £500k, but when drawdown occurs the borrower gets only about £450k, with the remaining £50k used to pay the cashback, the pre-drawdown interest, any upfront interest, with SS keeping the rest in their client account to use to pay the monthly interest payments.
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Post by mrclondon on Apr 7, 2015 22:11:46 GMT
With PBL 027 due to drawdown tomorrow, time to bump this thread in the absence of any comment from savingstream. There really can be no excuse for backdaing of transactions.
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ramblin rose
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“Some people grumble that roses have thorns; I am grateful that thorns have roses.” — Alphonse Karr
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Post by ramblin rose on Apr 8, 2015 7:35:27 GMT
With PBL 027 due to drawdown tomorrow, time to bump this thread in the absence of any comment from savingstream. There really can be no excuse for backdaing of transactions. Agreed. We highlighted this a very long time ago, and just for the one month after that discussion paid interest was not backdated and I was hopeful that they would not be accounting for payments properly on the day they were paid. However, after that it all went back to the norm of backdating and as well as the potential tax confusion it creates account tracking hassle. Quite apart from the fact that for the previously mentioned loans in this thread the interest was not available to be used during the past tax year, so should not have to be liable for the tax, which it would be if it were backdated.
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oldgrumpy
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Post by oldgrumpy on Apr 8, 2015 7:49:42 GMT
Wharever SS do about this, if they do end up backdating it to 2014-2015, they MUST NOT change their policy retrospectively as a result of this thread, and adjust the figures on our tax statements to put them in 2015-2016, or we might inadvertantly submit figures to HMRC including the interest twice.
It shouldn't affect me because I shan't be reporting my 2014-2015 tax return for a few months.
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Post by mrclondon on Apr 9, 2015 13:08:46 GMT
I have received assurance from SS that they appreciate that backdating transactions across the financial year boundary is not appropriate and will refarin from doing so. We can but hope.
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