nick
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Post by nick on May 4, 2016 14:24:22 GMT
"BONUSES Investments of £25,000 and more 1% i.e. 13% p.a" My maths may be a bit rusty, but doesn't 1% received on a 6 mth loan equate to 2%, and thus 12%+2%=14% etc, etc. And I thought my maths was bad........... I queried this with FS. They confirmed that the 1% pa is actually 0.5% over the 6 month period. Ok, they could have made it a lot clearer by stating that stating the bonus was additional 1% pa to avoid the confusion.
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Steerpike
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Post by Steerpike on May 4, 2016 14:27:54 GMT
I queried this with FS. They confirmed that the 1% pa is actually 0.5% over the 6 month period. Ok, they could have made it a lot clearer by stating that stating the bonus was additional 1% pa to avoid the confusion. They did
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Jeepers
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Post by Jeepers on May 4, 2016 14:27:59 GMT
I queried this with FS. They confirmed that the 1% pa is actually 0.5% over the 6 month period. Ok, they could have made it a lot clearer by stating that stating the bonus was additional 1% pa to avoid the confusion. I don't invest in this site but thought I'd have a look given they were offering bonuses. Not only are the bonuses unclear but the SM is far too complicated with premiums and discounts and shifting tax liability on interest earned by someone else. This can't be a HMRC requirement as stated as the SS and MT SM is much more simple.
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Post by Deleted on May 4, 2016 14:59:47 GMT
Ok, they could have made it a lot clearer by stating that stating the bonus was additional 1% to avoid the confusion. They did. The 1% cashback is in addition to the existing bonuses.
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Post by fundingsecure on May 4, 2016 15:34:04 GMT
Just to be clear:
Cashback is a simple percentage based on your bid, paid when the loan is drawn down
Interest (and bonuses) are the percentage rate per annum, paid when the loan completes
If you invest £100 in a 6 month loan
When the loan is drawn down you will receive 1% Cashback = £1.00 paid back to your account.
After 6 months the interest earned will be 12%pa = £6 interest
If you invest £50,000 in a 6 month loan
When the loan is drawn down you will receive 1% Cashback = £500 paid back to your account
After 6 months the interest earned will be 12%pa+2%pa = 14%pa = £3,500 interest
HTH
FundingSecure
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nick
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Post by nick on May 4, 2016 15:56:00 GMT
Just to be clear: Cashback is a simple percentage based on your bid, paid when the loan is drawn down Interest (and bonuses) are the percentage rate per annum, paid when the loan completes If you invest £100 in a 6 month loan When the loan is drawn down you will receive 1% Cashback = £1.00 paid back to your account. After 6 months the interest earned will be 12%pa = £6 interest If you invest £50,000 in a 6 month loan When the loan is drawn down you will receive 1% Cashback = £500 paid back to your account After 6 months the interest earned will be 12%pa+2%pa = 14%pa = £3,500 interest HTH FundingSecure The following is a transcript I had with one of your support staff who seems to contradict what you have stated above regarding cashback: Transcript: [2016-05-04 15:20:27] [Nick] Hi, is the 1% cashback available to all investors in the Birmingham Land and Gleneagles Estate, 1% of the loaned amount or 1%pa (ie 0.5% of the loaned amount)? [2016-05-04 15:20:50] [Daisy] 1% pa [2016-05-04 15:21:20] [Nick] Ok, so effectively 0.5% of funds for a 6 mth loan? [2016-05-04 15:21:33] [Daisy] Yes, correct [2016-05-04 15:24:17] [Nick] ok, thanks I'm not sure who to believe?
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Post by Deleted on May 4, 2016 16:04:52 GMT
1% cashback is 1% cash back - simples  |
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mikes1531
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Post by mikes1531 on May 4, 2016 16:30:55 GMT
... and shifting tax liability on interest earned by someone else. This can't be a HMRC requirement as stated as the SS and MT SM is much more simple. : I don't use MT, so I can't comment about them. The difference between SS and FS is in the way interest is paid when loan parts are sold. With SS, the platform makes a note of how much interest the seller has accrued, and they pay it to the seller later, when they receive it from the borrower. With FS, interest is paid only at a loan's maturity, and it's paid to whomever owns the loan part at that time. (FS may set the price a part sells for on the secondary market by reference to the interest accrued to the date of sale, but that's a price adjustment rather than an interest payment.) HMRC rules say that the person receiving the interest must declare that as income and if they're a taxpayer they'll owe tax on it. I'm no expert, but I believe FS are describing the situation accurately. HTH IMHO, tax laws never are as easy to understand as they should be. 
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Jeepers
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Post by Jeepers on May 4, 2016 16:53:00 GMT
... and shifting tax liability on interest earned by someone else. This can't be a HMRC requirement as stated as the SS and MT SM is much more simple. : I don't use MT, so I can't comment about them. The difference between SS and FS is in the way interest is paid when loan parts are sold. With SS, the platform makes a note of how much interest the seller has accrued, and they pay it to the seller later, when they receive it from the borrower. With FS, interest is paid only at a loan's maturity, and it's paid to whomever owns the loan part at that time. (FS may set the price a part sells for on the secondary market by reference to the interest accrued to the date of sale, but that's a price adjustment rather than an interest payment.) HMRC rules say that the person receiving the interest must declare that as income and if they're a taxpayer they'll owe tax on it. I'm no expert, but I believe FS are describing the situation accurately. HTH IMHO, tax laws never are as easy to understand as they should be. If I buy a loan part let's say for £1000 and earn £100 interest and sell it on for £1100, wouldn't the £100 increase be classed as a capital gain?
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mikes1531
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Post by mikes1531 on May 4, 2016 17:31:17 GMT
IMHO, tax laws never are as easy to understand as they should be. If I buy a loan part let's say for £1000 and earn £100 interest and sell it on for £1100, wouldn't the £100 increase be classed as a capital gain? : It depends! AIUI, there's a special class of asset known as (something like) 'simple debts', and normal CG rules apparently don't apply to those. AIUI, the first person to own a P2P loan part probably is holding a simple debt. So if they got in when the loan was first made, they'd have nothing to report to HMRC. If they bought the part on the SM for £1000 and sold it some time later for £1100 then they have a profit to report, but I don't know whether it's a CG or income. To make matters even more complicated, if someone does a lot of buying and selling, they might be considered to be 'trading', at which point I think a different set of rules would apply. I'm totally out of my depth on this, so don't rely on anything I've said. There's been a lot of discussion of this on the forum -- probably in the FS section at the time the SM was introduced, but there might be more related to other platforms or in the General section. If you use an accountant to deal with your taxes, discuss this with them. If you don't, maybe you ought to!
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Post by fundingsecure on May 4, 2016 17:32:20 GMT
Just to be clear: Cashback is a simple percentage based on your bid, paid when the loan is drawn down Interest (and bonuses) are the percentage rate per annum, paid when the loan completes If you invest £100 in a 6 month loan When the loan is drawn down you will receive 1% Cashback = £1.00 paid back to your account. After 6 months the interest earned will be 12%pa = £6 interest If you invest £50,000 in a 6 month loan When the loan is drawn down you will receive 1% Cashback = £500 paid back to your account After 6 months the interest earned will be 12%pa+2%pa = 14%pa = £3,500 interest HTH FundingSecure The following is a transcript I had with one of your support staff who seems to contradict what you have stated above regarding cashback: Transcript: [2016-05-04 15:20:27] [Nick] Hi, is the 1% cashback available to all investors in the Birmingham Land and Gleneagles Estate, 1% of the loaned amount or 1%pa (ie 0.5% of the loaned amount)? [2016-05-04 15:20:50] [Daisy] 1% pa [2016-05-04 15:21:20] [Nick] Ok, so effectively 0.5% of funds for a 6 mth loan? [2016-05-04 15:21:33] [Daisy] Yes, correct [2016-05-04 15:24:17] [Nick] ok, thanks I'm not sure who to believe? --------------------------------------------------------------------------------------- Referring to the above transcript: With apologies - the transcript you quoted was incorrect. Until recently we have not usually been offering Cashback - and Daisy's reply was incorrect. Unfortunately Daisy had not been trained fully on the Cashback process, but this has now been covered. Cashback is Cashback - 1% of the invested amount is paid as cashback. Hopefully this is clear - once again apologies for any confusion due to the error. Nigel Hackett FundingSecure
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mikes1531
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Post by mikes1531 on May 4, 2016 17:38:06 GMT
If I buy a loan part let's say for £1000 and earn £100 interest and sell it on for £1100... : I forgot to mention... With respect to the quote above, AIUI, as far as HMRC is concerned, if you didn't receive the £100 from the borrower via the platform as agent, then you haven't earned any interest. Usual disclaimer... I'm not appropriately qualified, so you can't rely on anything I say! 
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ilmoro
Member of DD Central
'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 4, 2016 18:00:05 GMT
For those that havent read it Daisy features in this months FS newsletter
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nick
Member of DD Central
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Post by nick on May 4, 2016 19:06:57 GMT
The following is a transcript I had with one of your support staff who seems to contradict what you have stated above regarding cashback: Transcript: [2016-05-04 15:20:27] [Nick] Hi, is the 1% cashback available to all investors in the Birmingham Land and Gleneagles Estate, 1% of the loaned amount or 1%pa (ie 0.5% of the loaned amount)? [2016-05-04 15:20:50] [Daisy] 1% pa [2016-05-04 15:21:20] [Nick] Ok, so effectively 0.5% of funds for a 6 mth loan? [2016-05-04 15:21:33] [Daisy] Yes, correct [2016-05-04 15:24:17] [Nick] ok, thanks I'm not sure who to believe? --------------------------------------------------------------------------------------- Referring to the above transcript: With apologies - the transcript you quoted was incorrect. Until recently we have not usually been offering Cashback - and Daisy's reply was incorrect. Unfortunately Daisy had not been trained fully on the Cashback process, but this has now been covered. Cashback is Cashback - 1% of the invested amount is paid as cashback. Hopefully this is clear - once again apologies for any confusion due to the error. Nigel Hackett FundingSecure Thank you for the clarification and confirmation the 1% Cashback is an absolute amount. Having now reread the original email that was sent out earlier today, it does appear accurate and clear - the confusion was mine (confusing cashback with bonuses etc).
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Post by earthbound on May 4, 2016 19:18:35 GMT
For those that havent read it Daisy features in this months FS newsletter Im not going to post the obvious imaginary pic of daisy, i was tempted.. but i wont or maybe its elsewhere...
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