DeafEater
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Post by DeafEater on Apr 7, 2017 22:22:15 GMT
The 6th April came and went and I don't see a link to download a tax statement for the recently deceased tax year. Is this coming or do we have to work it out for ourselves?
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treeman
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Post by treeman on Apr 8, 2017 8:48:28 GMT
The 6th April came and went and I don't see a link to download a tax statement for the recently deceased tax year. Is this coming or do we have to work it out for ourselves? Asked them yesterday - relevant line from the reply : "All lenders will receive a tax statement later this month, documenting how much interest they earned on the Growth Street platform in the 2016-17 tax year."
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DeafEater
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Post by DeafEater on Apr 9, 2017 10:03:30 GMT
The 6th April came and went and I don't see a link to download a tax statement for the recently deceased tax year. Is this coming or do we have to work it out for ourselves? Asked them yesterday - relevant line from the reply : "All lenders will receive a tax statement later this month, documenting how much interest they earned on the Growth Street platform in the 2016-17 tax year."Thanks treeman. I shall contain my enthusiasm to inform HMRC of the extent of my indebtedness.
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Post by p2plender on Sept 14, 2017 12:30:47 GMT
Did they issue tax statements then? Thanks.
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Post by dan1 on Sept 14, 2017 12:44:11 GMT
Did they issue tax statements then? Thanks. Yes, by email at the start of May.
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DeafEater
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Post by DeafEater on Apr 26, 2018 18:22:54 GMT
They sent my 2017-2018 'tax statement' on Wednesday and it lists both the total interest paid in the year and also (separately) the total bonuses paid in the year. I had rather assumed that the cashback bonus was tax free so I don't understand why it's referenced on the tax statement. Does anyone have definitive guidance on whether the GS bonus is taxable or not?
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Post by pmjenkins on Apr 26, 2018 18:35:06 GMT
It is my understanding that welcome or referral bonuses are tax free, but referrer's bonuses aren't.
I've received both types of bonus and the Growth Street tax statement lumps them both together. Not helpful.
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DeafEater
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Post by DeafEater on Apr 26, 2018 21:24:53 GMT
It is my understanding that welcome or referral bonuses are tax free, but referrer's bonuses aren't. Interesting. Do you mind sharing where you came by that understanding because I also have one of each type of bung from GS. My assumption had been that incentive payments (which is descriptive of both 'welcome' and 'referrer' bungs) are tax free. I'm also with Archover and they were doing both 'welcome' and 'referrer' bungs during the 17-18 tax year and I received one of each of those as well. The Archover tax statement lists only interest payments and the incentive awards don't feature on it at all.
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Post by dan1 on Apr 26, 2018 21:58:03 GMT
It is my understanding that welcome or referral bonuses are tax free, but referrer's bonuses aren't. Interesting. Do you mind sharing where you came by that understanding because I also have one of each type of bung from GS. My assumption had been that incentive payments (which is descriptive of both 'welcome' and 'referrer' bungs) are tax free. I'm also with Archover and they were doing both 'welcome' and 'referrer' bungs during the 17-18 tax year and I received one of each of those as well. The Archover tax statement lists only interest payments and the incentive awards don't feature on it at all. - you may find a post from last year useful: p2pindependentforum.com/post/181650/thread. I've not checked the wording on the statement this year but I've no reason to think it has been changed.
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DeafEater
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Post by DeafEater on Apr 27, 2018 15:29:08 GMT
Thanks for the reference dan1. That rather suggests Lending Works think differently from both Archover AND Growth Street! I note that in the post you gave the link to, it provides two links to HMRC guidance (one for miscellaneous income and one for cash-backs) but both links point to the same HMRC page. Did you perhaps intend the second link to go here. Zopa appear to agree with Lending Works on the tax treatment of the two types. I guess the only sensible approach is to ask each platform what they're going to declare to HMRC in THEIR return because it's only when you say something different from that on your own tax return that HMRC get curious. I'll report back when I get answers from GS and AO which are the only two platforms who gave me money of both types |
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Post by dan1 on Apr 27, 2018 20:03:41 GMT
Thanks for the reference dan1 . That rather suggests Lending Works think differently from both Archover AND Growth Street! I note that in the post you gave the link to, it provides two links to HMRC guidance (one for miscellaneous income and one for cash-backs) but both links point to the same HMRC page. Did you perhaps intend the second link to go here. Zopa appear to agree with Lending Works on the tax treatment of the two types. I guess the only sensible approach is to ask each platform what they're going to declare to HMRC in THEIR return because it's only when you say something different from that on your own tax return that HMRC get curious. I'll report back when I get answers from GS and AO which are the only two platforms who gave me money of both types Hi DeafEater - I've just checked the annual statement for this year and the last tax year and both links point to the same HMRC document. I too would like to report the same information that the platform reports, at least our tax returns would be consistent with the information provided to HMRC. In fact, I would welcome legislation or the like from HMRC to mandate FinTech platforms to provide a standard tax reporting form with figures for interest, dividends, other income, and deductible fees, i.e. make it the responsibility of the platforms. At present, platforms are not able to provide individual tax advice but all investors ask is to know what numbers to put where on their tax forms. I kind of feel sorry for the likes of BM whose fees are not deductible (or at least that's one interpretation!) but they are not allowed to be definitive on the subject. I'm convinced that this crazy situation of whether cash back, instant returns, premiums/discounts, referral incentives received are taxable puts many many investors off of investing in P2P and think why bother? This sort of stuff shouldn't be open to interpretation and it's madness that some investors will pay tax on a referral when others won't, this stuff isn't complicated but we seem to make it so (or HMRC/politicians do!).
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jlend
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Post by jlend on May 8, 2018 7:27:00 GMT
Thanks for the reference dan1 . That rather suggests Lending Works think differently from both Archover AND Growth Street! I note that in the post you gave the link to, it provides two links to HMRC guidance (one for miscellaneous income and one for cash-backs) but both links point to the same HMRC page. Did you perhaps intend the second link to go here. Zopa appear to agree with Lending Works on the tax treatment of the two types. I guess the only sensible approach is to ask each platform what they're going to declare to HMRC in THEIR return because it's only when you say something different from that on your own tax return that HMRC get curious. I'll report back when I get answers from GS and AO which are the only two platforms who gave me money of both types Did you ever hear back? I did ask GS if they were going to ask hmrc and the fca to review their tax statements, in the light of Assetz Capital and Ratesetter saying they were doing this. The said no which feels a shame given that it appears to be possible.
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DeafEater
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Post by DeafEater on May 8, 2018 15:58:15 GMT
I heard back from Archover and they are regarding both 'welcome' and 'referrer' payments as incentives and as such are not including them in their return to HMRC. They do of course make it clear that it's up to me what I declare to HMRC. However since I've been told what they're doing and I have a tax statement from them that omits the incentive payments, you can probably hazard a guess as to what I'm declaring for that platform.
Growth Street have been less than candid on the matter. They started off by declining to answer a question that I didn't ask. I reiterated that I really WASN'T asking for tax advice and if they looked at my question again, they'd see I just wanted to know whether THEY will be declaring any aspect of the bonus payments to HMRC. They said: "we'll have to talk to our legal department" which seemed an odd thing to say because they really ought to know by now. Four working days later and still no response, I chased them up over the bank holiday weekend but still no response today.
The whole thing is a mess and my aim of keeping sweet with HMRC by declaring whatever aspect of the bonus payments any given platform are themselves declaring, has so far floundered with GS. If I ever do get a response, I will post back here but I'm not impressed.
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jnm21
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Post by jnm21 on May 20, 2018 19:25:12 GMT
I hope this helps!
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jlend
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Post by jlend on May 20, 2018 19:41:14 GMT
I heard back from Archover and they are regarding both 'welcome' and 'referrer' payments as incentives and as such are not including them in their return to HMRC. They do of course make it clear that it's up to me what I declare to HMRC. However since I've been told what they're doing and I have a tax statement from them that omits the incentive payments, you can probably hazard a guess as to what I'm declaring for that platform.
Growth Street have been less than candid on the matter. They started off by declining to answer a question that I didn't ask. I reiterated that I really WASN'T asking for tax advice and if they looked at my question again, they'd see I just wanted to know whether THEY will be declaring any aspect of the bonus payments to HMRC. They said: "we'll have to talk to our legal department" which seemed an odd thing to say because they really ought to know by now. Four working days later and still no response, I chased them up over the bank holiday weekend but still no response today.
The whole thing is a mess and my aim of keeping sweet with HMRC by declaring whatever aspect of the bonus payments any given platform are themselves declaring, has so far floundered with GS. If I ever do get a response, I will post back here but I'm not impressed. Did you ever get a response? I am finding it weird that platforms don't seem comfortable just picking up the phone and asking hmrc and the fca when they have queries like this. Surely that is better than 10s of thousands of lenders potentially asking the same question. As you say it's not tax advice...
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