spiral
Member of DD Central
Posts: 909 
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Post by spiral on Mar 30, 2015 17:27:49 GMT
I know that RS changed this about a year ago so that new loans didn't include a lenders fee but have they said what they're going to do with old loans which still show this bearing in mind that from the next tax year, tax must be paid on interest received before the deduction of fees? Apologies if I've missed it but a search on "Tax and Lenders fee" didn't appear to show any relevant threads. After consultation with HMRC, Zopa are changing their fees to a service charge in order to get round this but I am not yet aware that RS have said anything on this matter. Zopa Blog |
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Post by westonkevRS on Mar 30, 2015 18:01:56 GMT
I know that RS changed this about a year ago so that new loans didn't include a lenders fee but have they said what they're going to do with old loans which still show this bearing in mind that from the next tax year, tax must be paid on interest received before the deduction of fees? Apologies if I've missed it but a search on "Tax and Lenders fee" didn't appear to show any relevant threads. After consultation with HMRC, Zopa are changing their fees to a service charge in order to get round this but I am not yet aware that RS have said anything on this matter. Zopa BlogThis was discussed in: www.p2pindependentforum.com/thread/403/p2p-lending-isa-2015RateSetter have changed the classification of income and fees, where there are now no fees (this was nearly a year ago). Before there were in reality no "net fees", as RateSetter used to boost the income and then reduce it with fees. End result the same. A pointless exercise and I was so glad when it was simplified. Personally I paid tax on the self declared on the net position and its never been challenged... This was after all my true income from P2P. The reporting of income by myself as net seems to be the common method of lenders. This was also the correct treatment based on RateSetter's understanding from a tax specialist at the time (together with Zopa, I understand). The current/new gross vs net treatment on fees is being discussed as we speak, and as soon as this is clarified I'm sure each P2P lender will communicate, and I'll certainly post here. In the meantime I can't discuss the topic anymore, whilst the discussions are underway. Personally, I'll be reporting net for the tax year 2014/2015 as I've always done. @ westonkevRS
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