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Post by dan1 on Apr 13, 2017 20:17:44 GMT
My tax statement has just been made available to download. I didn't receive an email from Landbay, I've just been checking daily since the start of the tax year.
I've earned no interest because my funds are still sat in the queue but it lists cashback earned from refer a friend and cashback for funds sat on the queue.
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Post by bikeman on Apr 29, 2017 6:51:00 GMT
I think it could possibly be argued that cashback on funds waiting in the investment queue is actually interest BUT I can't agree that the referral fee I received is interest.
I am going to ask Landbay but I expect to be ignored. Most of these p2p companies are a law unto themselves.
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ding
Member of DD Central
Posts: 238 
Likes: 132
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Post by ding on May 1, 2017 11:38:47 GMT
The general consensus in the press is cashback is not taxed. If only the banks would rename interest as cashback  So I won't be declaring the cashback on my SA. Just to completely confuse matters (I don't have a IFISA with landbay). landbayhelp.zendesk.com/hc/en-us/articles/206889330-If-my-funds-are-in-the-queued-investments-section-are-they-earning-interest-"ISA investments will also earn cashback while funds are on the investment queue. However, this will be credited to your Classic account rather than your ISA account, so that your allowance limit is not affected. This means that the cashback earned on your ISA will be liable for tax." |
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Post by dan1 on May 1, 2017 14:46:35 GMT
The general consensus in the press is cashback is not taxed. If only the banks would rename interest as cashback So I won't be declaring the cashback on my SA. Just to completely confuse matters (I don't have a IFISA with landbay). landbayhelp.zendesk.com/hc/en-us/articles/206889330-If-my-funds-are-in-the-queued-investments-section-are-they-earning-interest-"ISA investments will also earn cashback while funds are on the investment queue. However, this will be credited to your Classic account rather than your ISA account, so that your allowance limit is not affected. This means that the cashback earned on your ISA will be liable for tax." I believe that referees cashback is not taxable income but referrers is. I quoted this before (I can't find the post to link to) - it comes from the Lending Works annual statement: How are cashback/promotion credits treated for tax purposes?
We’re often asked this, and the answer depends on both the nature of the payment and your
personal circumstances (for example if you are investing through a company or in the course
of your business), but we’ve provided a general summary below:
“Refer a Friend” bonuses
Any payments received by an existing customer “referring” a friend or relative could be liable
to income tax and should be declared as income to HMRC.
However, any payments received by a new customer as an inducement to join Lending
Works would generally not be liable to income tax and therefore wouldn’t need to be declared
as income to HMRC.
Seems clear enough to me. But, I've received referees cashback (i.e. not taxable) on Z, RS & FC - RS & FC don't list it on their tax statement yet Z do - go figure!
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