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Peer to peer lending

Last post Mon, Feb 09 2015, 1:32 AM by maxsteam. 1 replies.
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  •  Mon, Feb 09 2015, 1:32 AM

    Re: Peer to peer lending

    Tax returns are not that onerous. If you don't fancy doing it yourself, a local bookkeeper will do it for you for £50 or so as long as you keep good records. However, if you ever find an investment scheme that offers to take your money, pay you lots of tax free income and deal with all the paperwork for you, you should hide your cheque book and run away.

    Peer to peer lending is a lot more risky than investing in a high street savings account and any profits/gains will be taxable. Having to submit a tax return, to me, would be the smallest of worries. How would you feel if you sent of a substantial investment and then, six months later, you were told that because of economic circumstances, the return for investors had changed and then, after another six months, you were told that the people who took your money were having financial problems?

    • Post Points: 5
  •  Sun, Feb 08 2015, 6:35 PM

    Peer to peer lending

    I now have sufficient funds to take a gamble on peer to peer lending. However, I read somewhere that gains made are not taxed by the providers and that I would have to complete a tax return form each year. As a basic rate tax payer I do not relish this onerous task.

    Furthermore, I'm not keen on reading numerous borrowers details and lending small amounts in a drip-wise fashion to spread the risk. Do peer to peer lending providers offer a product where it is all done for us in a timely manner (presumably at a less favourable interest rate)?

    Has anyone else tried peer to peer lending, and do you have any advice for newbies that you wish you had be given?

    • Post Points: 20