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Tax On Bad Debts Ends in Five Days
Here's a short, but certainly sweet, article.
I just had to pull a recent 4thWay® article explaining how 13% earned interest and 6% bad debts could leave you with a profit of less than 2%, all because we are taxed on the bad debts that we suffer directly. (That's as opposed to bad debts paid for by bad-debt provision funds, which are not taxed.)
The reason is yet more good news on taxes: the government is working on new legislation so that we don't have to pay tax on our losses.
Even better news: this is intended to apply from the coming tax year, which starts on 6 April 2015, so when you get around to completing your tax return some time in autumn or winter 2016, you will already be able to reclaim bad debts.
Your losses cannot offset tax bills for other savings and investment products, however.
Read more great tax changes for P2P lending coming up, including up to £1,000 tax-free interest per year, in How The Budget Affects Peer-to-Peer Lending.
Better yet, read our complete, up-to-date tax guide that already incorporates the latest from the March Budget: How Is Peer-to-Peer Lending taxed?