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Post by partyvegetable on Apr 28, 2017 10:11:49 GMT
Can anyone advise how to obtain a (2016/2017) tax statement for a Proplend account?
I can use 'Dashboard->Lender Statement' to obtain a csv of the account's transactions, then separate out the Interest, Interest Fee and Bank Interest lines, but this is error prone (i.e., I got it wrong the first time). Also, I can't access any of my 2016 transactions. There has to be a better way.
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Post by proplend on Apr 28, 2017 10:37:22 GMT
Good morning partyvegetable - I'm sorry to hear you've been having problems.
We are currently processing 2016-17 tax statements and these will be available for all Lenders to download from their 'Dashboard' next week.
Please feel free to give us a call on 0203 397 8290 if you would like us to manually produce a tax certificate before then - best to deal with these things over the phone rather than exchanging personal details online.
Regards, Richard
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Post by proplend on May 4, 2017 11:25:07 GMT
Good afternoon partyvegetable - just wanted to follow up on my response to your post from last week. Your 2017 tax certificate should now be available when logging into your Proplend Dashboard. You should see quite a prominent link on the dashboard 'Download Your 2017 Tax Certificate Here'. Any problems accessing it - please just give us a call. Thanks, Richard
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bababill
Member of DD Central
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Post by bababill on May 5, 2017 3:06:42 GMT
I can't find it. Even tried using the search button (command/F) on safari.
I want to take my 'like' back of your post. ;-)
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Post by proplend on May 5, 2017 7:43:26 GMT
Good morning bababill
Would you mind giving us a call on 0203 397 8290 so we can take a look into your specific account - we've checked three or four accounts and they're all showing certificates. If it's not showing on your dashboard when you call us, we'll immediately produce you one manually. Thanks, Richard
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djg
Posts: 18
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Post by djg on Nov 15, 2017 18:34:31 GMT
New to the Forum, but I’ve searched and can’t find my issue addressed anywhere. So I hope it’s OK to resurrect this thread and nudge it along a bit. In my limited experience, Tax Statements issued by P2P sites are invariably wrong. In fact I find it’s best to ignore them, and fill in my tax return using the actual payments into and out of my bank.
Usually I find the “Tax Statement” underestimates the interest received, and there is no problem.
But if the “Tax Statement” overestimates the interest, then there is very much a problem. If HMRC were to investigate my tax affairs, I would not fancy my chances of defending my figures against the “Tax Statement” figures.
I have found that Proplend in particular overestimate the interest, mainly because they include their 10% fee in the total, (because HMRC insist on it I’m told!). For this reason, I’ve withdrawn my non-ISA funds from Proplend. A pity, because Proplend has a lot going for it in my opinion.
I’m surprised nobody else has raised this issue, and am really interested to know how others deal with it?
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littleoldlady
Member of DD Central
Running down all platforms due to age
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Post by littleoldlady on Nov 15, 2017 20:41:37 GMT
I'm a simple minded soul. If HMRC say that PL should show the gross interest (ie including their 10%) then that is the amount that I would put on my return (in fact, I only have an ISA). I suppose their interpretation of tax law is that the gross amount is taxable and I would think it dangerous to put a lower figure on the return.
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IFISAcava
Member of DD Central
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Post by IFISAcava on Nov 15, 2017 21:06:56 GMT
I'm a simple minded soul. If HMRC say that PL should show the gross interest (ie including their 10%) then that is the amount that I would put on my return (in fact, I only have an ISA). I suppose their interpretation of tax law is that the gross amount is taxable and I would think it dangerous to put a lower figure on the return. But if you really do pay tax on the pre fee interest, it would make more sense for PL to pay a lower rate of interest and make their money another way before paying you. That's what other sites do and gives them a clear (non-ISA) advantage.
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david42
Member of DD Central
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Post by david42 on Nov 15, 2017 21:21:46 GMT
I'm a simple minded soul. If HMRC say that PL should show the gross interest (ie including their 10%) then that is the amount that I would put on my return (in fact, I only have an ISA). I suppose their interpretation of tax law is that the gross amount is taxable and I would think it dangerous to put a lower figure on the return. But if you really do pay tax on the pre fee interest, it would make more sense for PL to pay a lower rate of interest and make their money another way before paying you. That's what other sites do and gives them a clear (non-ISA) advantage. It would have been more tax efficient for PL to apply their charges to the borrower rather than the lender. Indeed one platform restructured their contracts a couple of year's ago for exactly that reason. But PL have not structured their charges tax efficiently so lenders need to pay tax on their charges. The tax statement is correct.
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IFISAcava
Member of DD Central
Posts: 3,664
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Post by IFISAcava on Nov 15, 2017 23:36:17 GMT
But if you really do pay tax on the pre fee interest, it would make more sense for PL to pay a lower rate of interest and make their money another way before paying you. That's what other sites do and gives them a clear (non-ISA) advantage. It would have been more tax efficient for PL to apply their charges to the borrower rather than the lender. Indeed one platform restructured their contracts a couple of year's ago for exactly that reason. But PL have not structured their charges tax efficiently so lenders need to pay tax on their charges. The tax statement is correct. good thing I am just in the ISA then. means that for every £100 in interest one keeps only £45 instead of £49.50.
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Post by proplend on Nov 16, 2017 16:37:14 GMT
New to the Forum, but I’ve searched and can’t find my issue addressed anywhere. So I hope it’s OK to resurrect this thread and nudge it along a bit. In my limited experience, Tax Statements issued by P2P sites are invariably wrong. In fact I find it’s best to ignore them, and fill in my tax return using the actual payments into and out of my bank.
Usually I find the “Tax Statement” underestimates the interest received, and there is no problem.
But if the “Tax Statement” overestimates the interest, then there is very much a problem. If HMRC were to investigate my tax affairs, I would not fancy my chances of defending my figures against the “Tax Statement” figures.
I have found that Proplend in particular overestimate the interest, mainly because they include their 10% fee in the total, (because HMRC insist on it I’m told!). For this reason, I’ve withdrawn my non-ISA funds from Proplend. A pity, because Proplend has a lot going for it in my opinion.
I’m surprised nobody else has raised this issue, and am really interested to know how others deal with it?
Glad to hear you think we've got a lot going for us djg - thanks Just to confirm our tax statements are correct as david42 suggests. We are looking at what we can do to improve the tax position regarding our charges but it's not something we can address easily I'm afraid. Lender tax efficiency is important to us, hence our changes to accommodate investments via SSAS, SIPP and IFISA. Thanks, Richard
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djg
Posts: 18
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Post by djg on Nov 18, 2017 19:15:00 GMT
Many thanks to all who responded to my resurrection of the thread. Richard: Good to hear that Proplend hopes to be able to do something about the problem in the future, even if that’s a long way off.
I must admit, the penalty involved is pretty small. For a 20% tax payer, the reduction in net income works out at less than 3%, which is hardly disastrous. Perhaps I should not let it put me off lending through Proplend. It’s just that it rankles to pay even a penny more tax than one should.
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nick
Member of DD Central
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Post by nick on Nov 7, 2018 18:55:54 GMT
proplend - do you have any intention of re-categorising the lender fee charged directly to lenders (which is not deductible for tax) to a loan servicing fee which is tax deductible. My understanding is that re-categorising the fee would be a simple process of re-defining the fee in new loan contract and updating the T&Cs. It seems a easily win and would boost the post tax return to a top rate tax payer by 10%.
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locutus
Member of DD Central
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Post by locutus on Nov 8, 2018 10:30:50 GMT
Thanks for highlighting this nick. I'm looking for new P2P platforms to invest in and this immediately puts me off.
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IFISAcava
Member of DD Central
Posts: 3,664
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Post by IFISAcava on Nov 8, 2018 10:33:58 GMT
Thanks for highlighting this nick . I'm looking for new P2P platforms to invest in and this immediately puts me off. I think PL and BM are the only two who do it this way? For PL, it makes an ISA even more tax efficient (I only invest in them via ISA).
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