sl75
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Post by sl75 on Aug 22, 2017 13:51:48 GMT
Lendy seem to have just inserted a backdated interest transaction into last tax year (31 Mar by the look of it), so that unless I go back several months, it makes it appear on the surface as though money has just appeared in my account by magic, and has "always" been there.
I've complained and asked them to correct the date on it, and explain what steps will be taken to avoid repeating the same error.
Just me, or everyone else with parts in whichever loan it was (I've got several transactions on the same date of the exact amount of the discrepancy, and hadn't saved a full copy of the transaction statement).
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locutus
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Post by locutus on Aug 22, 2017 14:26:50 GMT
Lendy seem to have just inserted a backdated interest transaction into last tax year (31 Mar by the look of it), so that unless I go back several months, it makes it appear on the surface as though money has just appeared in my account by magic, and has "always" been there. I've complained and asked them to correct the date on it, and explain what steps will be taken to avoid repeating the same error. Just me, or everyone else with parts in whichever loan it was (I've got several transactions on the same date of the exact amount of the discrepancy, and hadn't saved a full copy of the transaction statement). Inexcusable. This is info that presumably has already been submitted to HMRC by both the platform and the individual?
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n
Member of DD Central
Yet another Nick
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Post by n on Aug 22, 2017 14:41:48 GMT
Lendy seem to have just inserted a backdated interest transaction into last tax year (31 Mar by the look of it), so that unless I go back several months, it makes it appear on the surface as though money has just appeared in my account by magic, and has "always" been there. I've complained and asked them to correct the date on it, and explain what steps will be taken to avoid repeating the same error. Just me, or everyone else with parts in whichever loan it was (I've got several transactions on the same date of the exact amount of the discrepancy, and hadn't saved a full copy of the transaction statement). In my case it was just 1p that appeared today. Like you I don't have a copy of historical transactions (but I do now), and on cursory inspection I would agree that it was back in March.
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sl75
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Post by sl75 on Aug 22, 2017 14:54:13 GMT
Lendy's customer service rep says:
Whilst this identifies the loan on which this accounting error has been made, it seems to miss the point, so I've asked again for the date on the transaction to be corrected.
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lobsang
New Member
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Post by lobsang on Aug 28, 2017 11:23:41 GMT
That explains the discrepancy I'd noted in my balance which appeared last week. I couldn't see an obvious recent transaction but assumed it related to a backdated entry so asked Lendy support to confirm what is was. I also made the point that retrospectively adjusting figures is bad practice, even giving them an example of when crossing tax year boundaries makes it especially important! I've not had a response yet. They need to correct the interest transaction to the actual date it was credited to our accounts, rather than the notional accounting date, so we can report the correct interest received for a given tax year (which is when interest is made available to us). HMRC instructions are very clear on the basis on when interest is taxable for individuals and a number of tax cases have confirmed this position. I'll be updating my Lendy support ticket with this detail, also will include the following extracts from HMRC Savings & Investment Manual, www.gov.uk/hmrc-internal-manuals/savings-and-investment-manual/saim2440, which describes the tax treatment of when interest arises... the salient points to note are: 'tax is charged on the full amount of interest arising in the tax year'
'Interest ‘arises’ when it is received or made available to the recipient. Interest has been made available if it is credited to an account on which the account holder is free to draw'
So, whilst the amount of interest that has been backdated for PBL089 may in fact relate to a previous tax year 2016/17 due to an ‘accounting error’, it 'arises' in tax year 2017/18, based on the date it was made available to withdraw (i.e. in late August 17). This interest was not available for me to withdraw and cannot be backdated to a previous tax year. |
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sl75
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Post by sl75 on Aug 30, 2017 21:20:01 GMT
Just as an update, Lendy customer service have confirmed that the accounting error has been rectified - the 2016/17 tax statement is back to the same total as it was before.
The extra transaction now appears with the date 31/07/2017, the same as the other interest payment from when the loan was settled, and intermediate running totals are mostly back to what they should be.
In practical terms, that's good enough for me for this instance.
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