stevio
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Post by stevio on Jan 7, 2017 10:31:03 GMT
I'm preparing a summary for my accountant and he has asked for Deposits and Interest total to match with Withdrawals and Current Balance
I have received Cashback - should this be subject to CT and effectively added to interest for a business?
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SteveT
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Post by SteveT on Jan 7, 2017 10:44:52 GMT
Yes, all net profit is liable to corporation tax, however it is derived (including Cashback, SM trading gains, referral bonuses, etc.)
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stevio
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Post by stevio on Jan 7, 2017 13:34:27 GMT
Trying to work out the interest for MoneyThing - counting Interest payments alone is much lower than the tax statement interest, so I thought maybe add Repayments, but that then is higher than the tax statement Do I remember correctly that Repayments weren't separated out into Capital and Interest payments at the start of MT? |
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archie
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Post by archie on Jan 7, 2017 14:00:51 GMT
Trying to work out the interest for MoneyThing - counting Interest payments alone is much lower than the tax statement interest, so I thought maybe add Repayments, but that then is higher than the tax statement Do I remember correctly that Repayments weren't separated out into Capital and Interest payments at the start of MT? My interest and tax statement agree but I only joined during this tax year (15/04).
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SteveT
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Post by SteveT on Jan 7, 2017 14:45:52 GMT
Trying to work out the interest for MoneyThing - counting Interest payments alone is much lower than the tax statement interest, so I thought maybe add Repayments, but that then is higher than the tax statement Do I remember correctly that Repayments weren't separated out into Capital and Interest payments at the start of MT? Correct
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stevio
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Post by stevio on Jan 8, 2017 10:50:33 GMT
So, for FS, I have used:
Interest+Cashback-SM purchase costs+SM sale gains = Profits
(Where SM purchase costs/SM sale gains have been worked out by taking the "SM Net" value provided in the Account Information from the Debit/Credit)
This is a negative value, but this might well be because most of the purchases were towards the end of my tax year and interest for those purchases won't be received till the end of the loan (for FS), so next tax year
Does this sound about right?
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SteveT
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Post by SteveT on Jan 8, 2017 11:38:30 GMT
I'm not an accountant but I believe it will depend on your company's accounting policy on timing of recognising interest income in the accounts (ie. when accrued or when paid). If you're recognising loan interest as income when it accrues (which I think the approach you describe implies) then you'll also need to include the total accrued "Interest to Date" shown at the bottom of "My Investments". Either way, your FS "profit" shouldn't be negative unless you've suffered capital losses that outweigh your interest earnings.
I think you really need to split out SM premiums paid/received from SM accrued interest purchased/sold. The FS website doesn't give you this; the dashboard "Secondary market (net)" figure aggregates the two and statement entries for individual SM transactions simply show the transaction total. I maintain an offline record of each SM transaction I make (capital vs premium/discount vs accrued interest) so I can total up net premiums/discounts and net accrued interest bought/sold as separate items.
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