gt94sss2
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Post by gt94sss2 on Sept 29, 2015 0:04:39 GMT
As its fill your tax return season - it occurs to me to ask if SS Cashback is taxable?
I assume not - and note its listed separately on the SS tax statements, but grateful for confirmation..
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SteveT
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Post by SteveT on Sept 29, 2015 6:54:08 GMT
As its fill your tax return season - it occurs to me to ask if SS Cashback is taxable? I assume not - and note its listed separately on the SS tax statements, but grateful for confirmation.. On other platforms at least, CB seems to be regarded as a promotional incentive to invest rather than a return on your investment and so not considered liable for tax as personal income (FC does not include CB on their tax statements, for example). However I invest via a company account and so treat all profits equally, however derived. [Incidentally, the 0.5% CB offer seems to be doing its thing; total funding available is down to £1.6m this morning]
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Investor
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Post by Investor on Sept 29, 2015 9:19:27 GMT
The 0.5% doesn't seem to be sufficient to have caused much of an influx of cash into these in the first hour. Would anticipate it would need a minimum of 1.5% at the current takeup rate to get these loans fully funded. Would think that kind of rate would cause some 'mature' investors sitting on some of the better earlier loans to flip them on the SM which would be bought by newer members, who already have their fill in these later loans and are looking to diversify. This is what would be required to significantly increase the overall pot of cash tied up in SS. Are all savingstream cashbacks 0.5%? Has there ever been higher? I would have sold a big chunk of my Zopa loanbook if it had been 1% which would have covered fees. If I remember correctly most were originally 1%. There we a few that were also 'stepped' for example .5% for investments up to 20k, 1% for up to 40k etc. Don't quote me on the numbers but I remember something along those lines unless I am confusing that with another platform. Think the super yacht had something like that in it so may be worth checking that thread.
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Investor
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Post by Investor on Sept 29, 2015 9:22:24 GMT
As its fill your tax return season - it occurs to me to ask if SS Cashback is taxable? I assume not - and note its listed separately on the SS tax statements, but grateful for confirmation.. On other platforms at least, CB seems to be regarded as a promotional incentive to invest rather than a return on your investment and so not considered liable for tax as personal income (FC does not include CB on their tax statements, for example). However I invest via a company account and so treat all profits equally, however derived. [Incidentally, the 0.5% CB offer seems to be doing its thing; total funding available is down to £1.6m this morning] Probably cash from the carnage at ablrate ablrateandy last night.
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chrisf
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Post by chrisf on Oct 1, 2015 8:58:31 GMT
So with 500K in interest payments arriving today, PBL58 and PBL59 will get over the line, but PBL60 is surely going to need cashback upped to 1% to see it home?
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elgerod
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Post by elgerod on Oct 1, 2015 9:23:37 GMT
There's also half the Superyacht and pebble 6 being repaid "end of September"; that's another £850,000.
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LittleBear
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Post by LittleBear on Oct 1, 2015 11:16:15 GMT
And don't forget Pebble 15 where the sale is agreed for today. That's another £1M.
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nick
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Post by nick on Oct 1, 2015 14:40:05 GMT
As its fill your tax return season - it occurs to me to ask if SS Cashback is taxable? I assume not - and note its listed separately on the SS tax statements, but grateful for confirmation.. The cashback is taxable and should be reported as part of interest received. Unlike some other platforms, in this case cashback is paid by the borrower, ie Savingstream - remember we lend to Savingstream and not to their underlying borrower (which is all just notional). The simple rule is if someone other than the borrower is paying the cashback, eg a platform, then this won't be taxable. If the borrower is paying you the cashback, then it is deemed part of the total reward for providing the loan and thus taxable in the same way as interest. For example, most of the cashbacks paid on Thincats is direct from the borrower and thus taxable. However, in the case of FC, it FC that pays the cashback and not the borrower. Hope that helps.
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skippyonspeed
Some people think I'm a little bit crazy, but I know my mind's not hazy
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Post by skippyonspeed on Oct 3, 2015 7:59:34 GMT
As it is not interest should it be counted as CGT as opposed to income tax?
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nick
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Post by nick on Oct 3, 2015 8:26:46 GMT
As it is not interest should it be counted as CGT as opposed to income tax? I believe 'cashback' clearly falls into the definition of interest, defined by HMRC as "Interest is the return or compensation for the use or retention by one person of a sum of money belonging to or owed to another. Interest accrues from day to day even if payable only at intervals, and is, therefore, apportionable in respect of time between persons entitled in succession to the principal.” (SAIM2030 - Interest: meaning of interest). More generally, any reward given in respect of lending monies will be taxed as income. For example, discounted bonds/debts (where a debt is issued at say 95p but has a face value of £1) will have the discount treated as income rather than treated as a capital gain despite the claim that the cost of debt was the issue price (eg in the previous example the debt would have a deemed cost of £1 for CGT purposes and the discount of 5p taxed as income.
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Post by xyon100 on Oct 3, 2015 9:03:37 GMT
Excuse me butting in, but I wondered if anyone knew of a dedicated resource to help with basic tax reporting of P2P income/interest?
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SteveT
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Post by SteveT on Oct 3, 2015 10:49:29 GMT
Excuse me butting in, but I wondered if anyone knew of a dedicated resource to help with basic tax reporting of P2P income/interest? All platforms should give you a facility to download a tax statement at the end of the tax year which shows what your interest earnings have been that year.
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Post by xyon100 on Oct 3, 2015 13:20:15 GMT
Ah, ok! Thanks, was worrying about that.
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jonah
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Post by jonah on Oct 3, 2015 14:32:35 GMT
Excuse me butting in, but I wondered if anyone knew of a dedicated resource to help with basic tax reporting of P2P income/interest? All platforms should give you a facility to download a tax statement at the end of the tax year which shows what your interest earnings have been that year. They should. There is one on the 'main board' here I can think of which currently doesn't though, AFAIK. 
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tony
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Post by tony on Oct 3, 2015 19:27:28 GMT
I am so poor I do not come within the tax bracket! Or at least I didn't until I started investing in P2P but now the interest received from my modest £15k diversified portfolio has taken me over the top - I suppose all good things have a sting in their tail. So, it is back to completing a Tax Return at the end of this financial year but probably next years increased allowance will take me out of the tax bracket again unless P2P rates rocket to 20% - there I go, dreaming again.
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