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Post by Deleted on Jan 23, 2017 22:58:17 GMT
With only a few months of the 16/17 tax year left what are the options for a p2p IFISA. Who is fully FCA authorised and has launched their IFISA.
I'm only aware of Abundance although there may be other smaller platforms I'm not aware of.
I also believe Lending Works and Landbay have FCA authorisation and plan to launch soon.
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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 Jan 23, 2017 23:56:38 GMT
With only a few months of the 16/17 tax year left what are the options for a p2p IFISA. Who is fully FCA authorised and has launched their IFISA. I'm only aware of Abundance although there may be other smaller platforms I'm not aware of. I also believe Lending Works and Landbay have FCA authorisation and plan to launch soon. Ive just created a list in a new thread to keep track
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Post by Deleted on Jan 24, 2017 9:10:32 GMT
With only a few months of the 16/17 tax year left what are the options for a p2p IFISA. Who is fully FCA authorised and has launched their IFISA. I'm only aware of Abundance although there may be other smaller platforms I'm not aware of. I also believe Lending Works and Landbay have FCA authorisation and plan to launch soon. Ive just created a list in a new thread to keep track Amazing response, great work! Definitely slim pickings at the moment, Abundance which I knew about and two providers I've never heard of. I refuse to pay 60% tax on P2P interest as the risk simply isn't worth it, but this is seriously limiting what I can deposit to keep within my PSA. Especially with circa 12% on SS and MT
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Post by sayyestocress on Jan 24, 2017 9:56:33 GMT
I refuse to pay 60% tax on P2P interest What circumstances lead to 60% tax? 
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Post by Deleted on Jan 24, 2017 10:00:21 GMT
I refuse to pay 60% tax on P2P interest What circumstances lead to 60% tax? Lets hope I can explain this right.... When your total taxable income from all sources (including investment interest) is over 100k you lose £1 of your tax free personal allowance for every £2 earned. So actual tax rate is 40% but due to this loss the effective rate is 60% until you earn enough to jump through this bracket and all your personal allowance has been lost.
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pom
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Post by pom on Jan 24, 2017 10:33:32 GMT
Worrying about risk to capital is one thing, but personally I don't see the point in worrying about the tax you pay - you only pay the tax if you earn it, and if a loan goes bad and you make a loss it reduces what you have to pay anyway. But if you'd rather accept rubbish bank rates just to avoid paying more tax because you've earned more then I guess that's up to you.
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Post by Matthew on Jan 24, 2017 10:37:59 GMT
With only a few months of the 16/17 tax year left what are the options for a p2p IFISA. Who is fully FCA authorised and has launched their IFISA. I'm only aware of Abundance although there may be other smaller platforms I'm not aware of. I also believe Lending Works and Landbay have FCA authorisation and plan to launch soon. FYI - the Lending Works ISA is pencilled in for launch on 14th February, possibly even 7th February. You'll be able to apply from within your Classic lender dashboard. Any questions let me know.
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Post by Deleted on Jan 24, 2017 10:46:44 GMT
Worrying about risk to capital is one thing, but personally I don't see the point in worrying about the tax you pay - you only pay the tax if you earn it, and if a loan goes bad and you make a loss it reduces what you have to pay anyway. But if you'd rather accept rubbish bank rates just to avoid paying more tax because you've earned more then I guess that's up to you. Hi pom, Depends how you look at this and I completely see your view on it. For me I am factoring in issues such as total platform risk where I get little or nothing back. I'm happier to take that risk for 12% but for an effective 4.8% (after tax) or less I'm just not. Especially when I can invest in Stocks&Shares High Risk Portfolio inside an ISA wrapper. Or move my money around current accounts for circa 3% completely FCA protected. Or how about this way, in an IFISA wrapper I can get approx 4.7% with Lending Works when they launch for a moderate/low risk p2p lender or without tax protection virtually the same from SS or MT in a very high risk category where loans are much more likely to default and eat into this percentage
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Post by Deleted on Jan 24, 2017 10:49:22 GMT
With only a few months of the 16/17 tax year left what are the options for a p2p IFISA. Who is fully FCA authorised and has launched their IFISA. I'm only aware of Abundance although there may be other smaller platforms I'm not aware of. I also believe Lending Works and Landbay have FCA authorisation and plan to launch soon. FYI - the Lending Works ISA is pencilled in for launch on 14th February, possibly even 7th February. You'll be able to apply from within your Classic lender dashboard. Any questions let me know. thanks for the update, very welcome news, my current thoughts are to use Lending Works for my 16/17 IFISA. I don't currently lend with yourselves as I've been waiting for the launch, would it benefit me to sign up now or are there no preferential sign up terms whether I'm an existing customer or not?
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Post by Matthew on Jan 24, 2017 11:02:06 GMT
FYI - the Lending Works ISA is pencilled in for launch on 14th February, possibly even 7th February. You'll be able to apply from within your Classic lender dashboard. Any questions let me know. thanks for the update, very welcome news, my current thoughts are to use Lending Works for my 16/17 IFISA. I don't currently lend with yourselves as I've been waiting for the launch, would it benefit me to sign up now or are there no preferential sign up terms whether I'm an existing customer or not? Hi @nirish There are no preferential terms for existing members so no need to sign up ahead of time. We will likely be limiting ISA applications to tranches of £1m though, to avoid materially suppressing rates or increasing queue times. I can let you know as soon as we're accepting applications.
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pom
Member of DD Central
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Post by pom on Jan 24, 2017 12:05:21 GMT
Worrying about risk to capital is one thing, but personally I don't see the point in worrying about the tax you pay - you only pay the tax if you earn it, and if a loan goes bad and you make a loss it reduces what you have to pay anyway. But if you'd rather accept rubbish bank rates just to avoid paying more tax because you've earned more then I guess that's up to you. Hi pom , Depends how you look at this and I completely see your view on it. For me I am factoring in issues such as total platform risk where I get little or nothing back. I'm happier to take that risk for 12% but for an effective 4.8% (after tax) or less I'm just not. Especially when I can invest in Stocks&Shares High Risk Portfolio inside an ISA wrapper. Or move my money around current accounts for circa 3% completely FCA protected. Or how about this way, in an IFISA wrapper I can get approx 4.7% with Lending Works when they launch for a moderate/low risk p2p lender or without tax protection virtually the same from SS or MT in a very high risk category where loans are much more likely to default and eat into this percentage Well I was assuming you'd pretty much run out of alternatives - given how little can now be stashed away in current accounts for anything like 3% then if you're not already maxed out and are investing in p2p you're definitely braver than me. (and personally I wouldn't be here if I didn't already have as much S&S exposure as I want). And yes while the LW ISA makes them more competitive related to higher-paying-but-non-authorised platforms, the fact they haven't launched it yet hasn't stopped me investing with them and many other platforms in the meantime (so that I can be pretty blase about platform exposure...until it happens anyway when I will probably still wince rather a lot, depending on the platform it might wipe out all my other p2p earnings for that year, but it still won't dramatically change anything for me). My tax bill's gone up a lot this last 18months but so has my treats bill. 
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Post by Matthew on Jan 24, 2017 12:27:04 GMT
What is likely to be the minimum investment? and will you be accepting previous years ISA transfer from the start or only new 16/17 money? The minimum investment will be just £10 - exactly the same as for the Classic account. Yes, we will be accepting both current year subscriptions and transfers of current and previous year ISA funds, from launch. Note: we've also put together an ISA section within our help centre which should cover most other FAQs: www.lendingworks.co.uk/help-centre/isa.
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Post by Ton ⓉⓞⓃ on Jan 24, 2017 12:31:36 GMT
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Post by Deleted on Jan 25, 2017 12:30:01 GMT
Hi pom , Depends how you look at this and I completely see your view on it. For me I am factoring in issues such as total platform risk where I get little or nothing back. I'm happier to take that risk for 12% but for an effective 4.8% (after tax) or less I'm just not. Especially when I can invest in Stocks&Shares High Risk Portfolio inside an ISA wrapper. Or move my money around current accounts for circa 3% completely FCA protected. Or how about this way, in an IFISA wrapper I can get approx 4.7% with Lending Works when they launch for a moderate/low risk p2p lender or without tax protection virtually the same from SS or MT in a very high risk category where loans are much more likely to default and eat into this percentage Well I was assuming you'd pretty much run out of alternatives - given how little can now be stashed away in current accounts for anything like 3% then if you're not already maxed out and are investing in p2p you're definitely braver than me. (and personally I wouldn't be here if I didn't already have as much S&S exposure as I want). And yes while the LW ISA makes them more competitive related to higher-paying-but-non-authorised platforms, the fact they haven't launched it yet hasn't stopped me investing with them and many other platforms in the meantime (so that I can be pretty blase about platform exposure...until it happens anyway when I will probably still wince rather a lot, depending on the platform it might wipe out all my other p2p earnings for that year, but it still won't dramatically change anything for me). My tax bill's gone up a lot this last 18months but so has my treats bill. When you say a complete platform failure might wipe out your earnings for the year, how many p2p platforms are you involved in? I have lent through 6 but am still exposed to the tune of 20% of my total on one which would obviously be greater than my annual interest, I hope to diversify further as I commit more funds!
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pom
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Post by pom on Jan 25, 2017 14:10:58 GMT
Well I was assuming you'd pretty much run out of alternatives - given how little can now be stashed away in current accounts for anything like 3% then if you're not already maxed out and are investing in p2p you're definitely braver than me. (and personally I wouldn't be here if I didn't already have as much S&S exposure as I want). And yes while the LW ISA makes them more competitive related to higher-paying-but-non-authorised platforms, the fact they haven't launched it yet hasn't stopped me investing with them and many other platforms in the meantime (so that I can be pretty blase about platform exposure...until it happens anyway when I will probably still wince rather a lot, depending on the platform it might wipe out all my other p2p earnings for that year, but it still won't dramatically change anything for me). My tax bill's gone up a lot this last 18months but so has my treats bill. When you say a complete platform failure might wipe out your earnings for the year, how many p2p platforms are you involved in? I have lent through 6 but am still exposed to the tune of 20% of my total on one which would obviously be greater than my annual interest, I hope to diversify further as I commit more funds! Too many...I guess I've kissed a few frogs  And it would depend which platform as my portfolio isn't as balanced as I'd like it to be right now. So looking at my list I've tried 19 P2Ps now (tho have ended up deciding against eight, so given I'm probably averaging about 9-9.5% interest across all sites my claim will become even less accurate if I lose any more - well hopefully even a total platform failure wouldn't result in 100% capital loss) and 3 BTL equity. Of the 19 P2P I have 3 I'm actively investing/reinvesting (but not expecting to grow much more) MT, ABL, BC. 3 still growing and happy to do so for now (ABG, COL, OCT - tho still reserving judgement on Oct cos of the queues). 2 hands off steadystate tickover - LW (except when they upset my plans with juicy offers), LB. 3 in varying levels of decline but still investing for now - RS, LI, SS. Then there were 2 from which I made clean exits after deciding they weren't for me - BM & PF. 4 I'm withdrawing from as soon as they repay - Z, LC, OLC and Investly (last two simply due to insufficient deal flow). And two Hotel Californias where I withdrew over a year ago but still have cash stuck - FC & FS (likely to soon be joined by LC). For BTL, 1 increasing (PM), 1 waiting to exit (THC) and 1 still toe dipping (PP) Luckily I'm not afraid of spreadsheets
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And it would depend which platform as my portfolio isn't as balanced as I'd like it to be right now.