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Post by Deleted on Apr 11, 2016 16:25:35 GMT
Hi there, our team is aware of the issue with the downloadable statements and is looking into it as we speak. We hope to have it resolved soon and our lending team will post an update on the forum with more detail. Apologies for the differences you are seeing.
Mat
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Post by newlender on Apr 11, 2016 16:35:41 GMT
The format last year clearly showed the amount to be declared so there was absolutely no confusion. This new one is very confusing - do we declare the 'earnings' or the 'interest received'?
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Post by propman on Apr 11, 2016 16:43:37 GMT
Mat,
Is Zopa proposing to identify the bad debt that became irrecoverable after 5 April 2015? Or are you expecting investors to identify this?
- PM
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Post by Deleted on Apr 11, 2016 16:45:10 GMT
In the statements it is the total earnings that you declare as this can also include additional other bonuses such as early investor and refer a friend.
Hope that helps. Our customer team is always on hand via 02075806060 to help go through your statements as they have access to your account.
Thanks,
Mat
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aju
Member of DD Central
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Post by aju on Apr 11, 2016 18:14:06 GMT
Blimey Mat, lets hope that there are not too many then ;-). Customer service could be inundated with confused lenders calling the helpline. Is there no one actually checking this stuff before dropping it onto the web-space. I wonder if the test teams and the developers in Zopa consider the effect of confusing people like this when it doesn't have to. I'm sure agile s/w development wasn't intended to be like this ;-)
To be honest the explanation of changes etc on zopa have never been that great so I think i'll wait a while and hope that zopa gets it right soon, I don't usually do tax stuff until all my investment reports are received the banks can sometimes take quite a while.
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Post by Ton ⓉⓞⓃ on Apr 11, 2016 21:47:48 GMT
I don't think this is just a Zopa thing. The law has changed significantly and as a result the old way of doing things can no longer stand. One thing being the fact that we can now get some tax relief from loans that become irrecoverable. I'm trying to get to grips with it myself, we all are. Often platforms avoid giving advice as they're not tax accountants. So thanks Mat for the pointer. One thing that I've realized recently, this shows how innocent I am, is that all money recovered from defaulters gets treated as income and maybe taxed so that's Interest and Capital from defaulters. In Edit. The Platform FK sent out an email recently but today have sent out another email giving more clarity Neither really help us it just highlights the difficulties |
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james
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Post by james on Apr 11, 2016 22:43:46 GMT
At least four things to watch out for:
1. On past statements Zopa has included sums recovered from past defaults. Unless Zopa now splits that between those that became irrecoverable before 6 April 2015 and those that became irrecoverable from 6 April 2015 you're going to be paying income tax you shouldn't be paying on the recoveries for defaults before 6 April 2015.
2. Irrecoverable for HMRC tax purposes is not synonymous with defaulted, collections and written off. While I hope that Zopa is only going to be declaring recoveries from 6 April 2015 onwards for loans that were also deemed irrecoverable and deducted from interest income I would very much appreciate a lot more writing from Zopa on just how they are doing this. There's so much work potentially involved in classifying loans that I don't think it's safe on any big platform to just take it on trust when no details are given.
3. How Zopa reports for loans that have been passed on to an outside agency for collection, passing the interest in that loan to said agency, perhaps best in the memories of those here as P2PS.
4. How the Safeguard Fund activities are reported.
Naturally these issues are faced to some extent by all platforms subject to HMRC jurisdiction.
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Post by propman on Apr 12, 2016 7:12:25 GMT
To add to James' post, I think you also need to claim bad debt relief for 2015/6 so a combined figure including it won't do.
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Greenwood2
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Post by Greenwood2 on Apr 12, 2016 7:43:23 GMT
I thought you could just deduct bad debt from earnings if you have sufficient earnings on the same platform.
This year doesn't seem like too much of a problem, I haven't claimed any bad debt relief before so the whole amount of bad debt reported should be deductible. Next year I'm not going to know how much of the recovered sums apply to loans I've claimed for this year and there will be pre-safeguard and Zopa Plus loans to sort out, but I think next year the platform has to do it. Good Luck to them!
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Post by Ton ⓉⓞⓃ on Apr 12, 2016 8:13:33 GMT
To add to James' post, I think you also need to claim bad debt relief for 2015/6 so a combined figure including it won't do. that 15/16 was the first year and is a some what different scheme to what will follow in subsequent tax years. (they changed it). From my poor memory, relief from 15/16 can't be carried forward and should be used in the next TY. Whereas the scheme that followed reief can be carried forward for four year. I'm sure there are other differences..
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spiral
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Post by spiral on Apr 12, 2016 9:07:29 GMT
I haven't claimed any bad debt relief before so the whole amount of bad debt reported should be deductible. Where do you see "bad debt" reported? My statement only shows bad debt recovered. Do I take it that as there is no mention of "written off" that I had none last year or is the statement not where I see this?
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Post by Ton ⓉⓞⓃ on Apr 12, 2016 9:27:18 GMT
I haven't claimed any bad debt relief before so the whole amount of bad debt reported should be deductible. Where do you see "bad debt" reported? My statement only shows bad debt recovered. Do I take it that as there is no mention of "written off" that I had none last year or is the statement not where I see this? If you look in "resources" at the top of the page i.e. p2pindependentforum.com/thread/77/useful-resources and look for something like Public Loan Book.
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Post by propman on Apr 12, 2016 9:53:38 GMT
To add to James' post, I think you also need to claim bad debt relief for 2015/6 so a combined figure including it won't do. that 15/16 was the first year and is a some what different scheme to what will follow in subsequent tax years. (they changed it). From my poor memory, relief from 15/16 can't be carried forward and should be used in the next TY. Whereas the scheme that followed reief can be carried forward for four year. I'm sure there are other differences.. That is my understanding, but I leave it to those more familiar to confirm...
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Post by propman on Apr 12, 2016 9:55:07 GMT
I thought you could just deduct bad debt from earnings if you have sufficient earnings on the same platform. This year doesn't seem like too much of a problem, I haven't claimed any bad debt relief before so the whole amount of bad debt reported should be deductible. Next year I'm not going to know how much of the recovered sums apply to loans I've claimed for this year and there will be pre-safeguard and Zopa Plus loans to sort out, but I think next year the platform has to do it. Good Luck to them! I thought that is only the case from 6/4/16 onwards. Your logic assumes that if a loan went bad in 15/16 then nothing was subsequently recovered on it.
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aju
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Post by aju on Apr 12, 2016 9:55:29 GMT
I tried the altfi "Public Loanbook" approach you mentioned but the data is very obscure relative to my book - all secure id's and its only for feb 2016 not the whole year so not sure how one can make an assessment from there.
If anyone knows how to analyse these feel free to explain but to be honest I shouldn't have to be doing this the platform should be providing adequate information IMHO of course.
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