david42
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Post by david42 on Aug 22, 2017 20:33:35 GMT
Now that dividend tax credits have been abolished, it can easily cost more to invest via a company than it does to invest as an individual. The main tax benefits for a company are: - A company provides an opportunity to defer income to later years
- A higher rate tax payer benefits from having the first £5,000 of dividends taxed at only 19% corporation tax. But that allowance is being reduced to £2,000 from next year.
- More generous criteria for offsetting expenses against the income.
- If you have a trading company, you might eventually be able to extract some of the remaining profit as entrepreneurs releif. But I don't think a company that earned its main income from P2P investments would qualify as a trading company.
After making maximum use of these benefits, the tax downside is that any income that you need to take from the company as dividends is now subject to double taxation. You pay 19% corporation tax as well as paying tax on the dividend at your marginal tax rate at the time you take the dividend.
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david42
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Post by david42 on Aug 21, 2017 11:32:55 GMT
Morning guff , We will be putting processes in place which will provide monthly updates on property loans. Collateral will visit each site monthly taking photographs, which will be added to the listing and our QS will also visit the site to verify works carried out. We will be asking on large development loans for interim valuations to verify the reports. Many thanks, Gordon What a great idea. Maybe you could also offer training courses to teach some of the other property P2P platforms how to visit sites monthly and take photos?
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david42
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Post by david42 on Aug 21, 2017 11:14:06 GMT
Thanks p2ples , the ' send message ' is there now ! Before I made my first post it wasn't there for some reason . The option is only there when you are logged in.
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david42
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Post by david42 on Aug 21, 2017 9:21:35 GMT
Just in case anyone thinks you are being serious I should point out that this is just an amusing side effect of the strange way p2pfinancenews embeds adverts to its other articles in the middle of the article you are reading.
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david42
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Post by david42 on Aug 21, 2017 9:12:33 GMT
Thanks very helpful. I have just added that to my dashboard. Is this figure the accruing interest for late loans (for whatever reason) or does it also include interest on performing loans that just haven't been paid yet? Both Thanks SteveT. I have also just added the accrued interest to my dashboard. My accrued interest is small, so it cannot include the monthly accrued interest from loans in the QAA account where I have a lot of money.
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david42
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Post by david42 on Aug 21, 2017 8:22:18 GMT
I do my own company tax returns because I like to understand the whole process. It took me a lot of effort in the first year to learn the rules. Now that I have set up my accounting spreadsheet to automatically replicate the company tax return, it is relatively low effort. The biggest challenge is that HMRC now insist on online tax returns. Their online submission software requires entries to be rounded to the nearest pound, but their software runs internal reconciliation between the company accounts and the tax return entries which fails because of the rounding. It can take me a whole weekend to work out which of the 100 or so numbers needs changing by 1 to satisfy their internal consistency checks. The HMRC online submission software for company tax returns is very unfriendly. I don't think there can be many people who manage to use it. I think the HMRC expects all companies to use accountants and commercial software packages. The other problem is the HMRC online submission software for company tax returns cannot handle capital gains. That causes a lot of problems because my company used to own some shares. Thanks for this I was wondering how much time you felt doing your own tax return takes up? What is your background (or really how much prior financial knowledge did you have)? Is yours a complicated business? I was an IT contractor for about 15 years until I retired last year. My only prior financial knowledge is that I had always done my own personal tax returns, reading the financial press to keep up with the law. When I switched to contracting I googled a lot and looked at a few published sets of company accounts to work out how to do my own accounts. I may be doing things wrong, but HMRC have not objected. The main complexities are of my own choosing: choosing to invest spare company cash in shares, and laterly P2P. Working out SIPP contribution carry forward rules etc. The online company tax return is the only externally imposed complexity. The whole thing was a breeze with paper tax returns. I normally set aside a couple of weekends to prepare and submit both my company tax return and my personal tax return. The preparation is around checking that my company and personal spreadsheets match all the latest information from the banks, P2P platforms, and stockbrokers, and that I have maximised tax avoidance with use of dividends and pensions. Then comes the dreaded online submission. The online company tax return is a lot less user friendly than the personal tax return. In my company accounts spreadsheet I maintain a tab dedicated to the online tax submission. That has 400 rows aligned to the the 300 or so questions in the online tax return. Each of my calculations is rounded in the same way that I think HMRC rounds it. As I type those into the online submission, I update my spreadsheet if any questions have changed or been re-numbered since last year. Then finally, fingers crossed, does it pass the online error checking? If not it can take another weekend experimenting with changing my rounding calculations to try to match the unpublished HMRC rounding rules. My spreadsheet is adorned with notes about what I adjusted to solve the rounding problem in previous years, to help me solve it next year. If you want to have a go, maybe you could try doing it without telling your accountant. If you manage to get to the end and pass the validation checks and you are still happy, then press submit. Otherwise abandon it at that point with your accountant none the wiser.
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david42
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Post by david42 on Aug 20, 2017 21:49:36 GMT
A really useful quick improvement would be to allow the account holder to select which account opens when they log in - would make it much more friendly for those who want only an IFISA account. If you log in using your ISA email address, it takes you to your ISA account.
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david42
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Post by david42 on Aug 20, 2017 21:29:49 GMT
I do my own company tax returns because I like to understand the whole process. It took me a lot of effort in the first year to learn the rules. Now that I have set up my accounting spreadsheet to automatically replicate the company tax return, it is relatively low effort.
The biggest challenge is that HMRC now insist on online tax returns. Their online submission software requires entries to be rounded to the nearest pound, but their software runs internal reconciliation between the company accounts and the tax return entries which fails because of the rounding. It can take me a whole weekend to work out which of the 100 or so numbers needs changing by 1 to satisfy their internal consistency checks. The HMRC online submission software for company tax returns is very unfriendly. I don't think there can be many people who manage to use it. I think the HMRC expects all companies to use accountants and commercial software packages.
The other problem is the HMRC online submission software for company tax returns cannot handle capital gains. That causes a lot of problems because my company used to own some shares.
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david42
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Post by david42 on Aug 19, 2017 20:44:35 GMT
Some partial answers from my limited understanding. - I set a target for the GBBA on 8th August and so far 12% of the target has been allocated. Most of that has gone into just two loans. So extrapolating suggests around three months to get fully invested if the speed does not change.
- I have no idea whether drip feeding improves diversification. I would also be interested to know.
- From reading these pages, I get the impression that the provision fund has yet to be used and Assetz has not stated when they would use it.
- Yes loan diversification does matter because once a loan fails to repay you cannot get that money back out for an indefinite period until Assetz decides to use the provision fund.
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david42
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Post by david42 on Aug 17, 2017 22:30:23 GMT
thank you abl for the ifisa transfer in opportunity! what is the process to transfer in? do i have to let the other provider know my intention? i am with hsbc. I have just initiated an ISA transfer. It seemed pretty straightforward to me. You drive the whole process from the Ablrate end: 1. Open an Ablrate ISA if you don't already have one. 2. On the ISA account overview page, near the big 'pay by card' button click on the small blue text " [Request a Transfer In]" 3. It asks you all the questions you would expect about the type of transfer (all or part transfer, this year or previous years etc). 4. From the answers, it generates a form that you need to print off, sign, and post to Ablrate.
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david42
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Post by david42 on Aug 15, 2017 21:39:41 GMT
... What i was not too happy about, as stated above, i pay tax on account, and they have automatically assumed that i will receive the same amount of income from p2p next year, and so i have had to pay another lump of tax on 31st July to cover what they perceive i will owe next year. Come my return in jan 18 i'm hoping for a lump back, or a lump 'off' my tax liability (Thanks to some good advice elsewhere) as my amounts in p2p have dropped by 50% ish, and I have a bed debt at Fundingsecure. I suppose i could have made an application for a reduction in my next years liability due to my change in circumstances, bet i'm not sure if i need the hassle. I made an application for a reduction in next year's tax on account because I am expecting a significant reduction in one source of income. The process was really easy. It was just one extra question at the end of my online text return. HMRC accepted my claim without question and reduced my tax on account.
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david42
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Post by david42 on Aug 14, 2017 21:21:10 GMT
I have created a separate thread here for discussion of this loan.
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david42
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Post by david42 on Aug 14, 2017 21:18:28 GMT
New loan announced 14 Aug 2017 Property Crowd Loan PC4 Southend S******* Loan Amount £ 1,571,416 of which £ 1,001,817 is available from Property Crowd Security Value £ 2,200,000. The site is valued as a development site and the valuation is calculated on a residual basis. LTV Based on Security Value 71.43% 90 Day Market Valuation ?? LTV Based on 90 day Market Valuation ?? Rate 11.35% Term 12 months
Borrower plan: Loan required to purchase the property. Planning permission has been granted to demolish the existing building and build a 5 storey building with 23 residential units, ground floor commercial space, and an underground car park. Gross Development Value £ 14,950,000
Exit Route: Refinance with a development facility.
ISA available, at a charge of 0.95% pa.
Please use this thread to capture any comments on the loan.
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david42
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Post by david42 on Aug 14, 2017 15:43:55 GMT
Where did the Edit button in Auto Invest section go? Hope it's only temporary and they will bring it back soon. And good to their word, I see the edit button is now back, fully refreshed after a short weekend break.
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david42
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Post by david42 on Aug 13, 2017 21:37:28 GMT
You should have received an email on 8th August called "8th August - Ablrate update". In terms of loan pipeline it said:
If you did not get that email, check your spam filter then contact Ablrate.
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