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What guidance is there from HMRC on declaring Zopa earnings?

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What guidance is there from HMRC on declaring Zopa earnings?

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We received the following advice from an HMRC officer: This guidance is intended to clarify matters and not to be decisive. Further guidance is available on HMRC website as set out below. For almost all Zopa lenders, their lending is an investment activity. They should, therefore, simply return the interest received in each financial year. Lenders will receive interest without tax having been taken off. Lenders will need to show the interest they receive in a tax year on their self-assessment returns. Anyone who does not have to fill in a tax return each year should contact their Tax Office and tell them about the interest they are receiving. If they pay tax under Pay As You Earn (PAYE), the Tax Office will normally adjust their tax code to collect the tax that is due on the interest. In some cases, they will have to fill in a tax return and the tax will be collected through their self-assessment. See HMRC website at http://www.hmrc.gov.uk/manuals/saimmanual/SAIM2400.htm. Lenders may a

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We received the following advice from an HMRC officer: This guidance is intended to clarify matters and not to be decisive. Further guidance is available on HMRC website as set out below. For almost all Zopa lenders, their lending is not a money-lending trade, but an investment activity. They should, therefore, simply return the interest received in each financial year, net of Zopa costs. Lenders will receive interest without tax having been taken off. Clearly, if interest is not received at the return date because of recovery problems or any other reason, the lender should not return it (i.e. they are not required to accrue). If the interest on a loan proves irrecoverable, there has been no amount received so nothing should be returned. In the event that the principle of a loan proves irrecoverable, however, the lender cannot claim that loss against interest that has been received on other loans. Lenders will need to show the interest they receive in a tax year on their self-assessmen

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