No more fees for lending
Lending Works is pleased to announce that lenders will no longer be charged for lending money on the Lending Works peer-to-peer lending platform.
The decision to entirely remove fees for lenders comes after HMRC clarified the tax treatment of P2P income. HMRC has confirmed that, from 6 April 2015, the amount lenders are required to declare is the full amount of interest arising in the tax year. This means the gross amount of interest paid under their loan agreements without any deductions for any fees or charges imposed by the platform or other party.
In order to ensure our lenders are not negatively impacted by this clarification, we have removed all lending fees. If you lend with other fee-charging platforms from April 2015 you will therefore incur a higher tax charge on the same net income, so you should consider this when comparing advertised returns.
This is great news for our lenders all round, who benefit from higher returns and an added tax saving whilst still benefitting from the Lending Works Shield.
It is also worth noting that you can now shield your P2P income from tax courtesy of the Innovative Finance ISA.
Need more information?
For more information about paying tax on your peer-to-peer lending interest, see our Quick guide to paying tax on P2P income.
If you would like further information please get in touch with us using the contact details listed in the Contact Us page.
Our website offers information about saving, investing, tax and other financial matters, but not personal advice. If you're not sure whether peer-to-peer lending is right for you, please seek independent financial advice, and if you decide to invest with Lending Works, please read our Key Lender Information PDF first.
Since opening our doors back in 2014, we’ve always prided ourselves on living and breathing two key principles at Lending Works: innovation, and putting the customer first in everything we do.
Wednesday’s Budget speech, coupled with the cut to Bank of England rates, represented a decisive response to the coronavirus. Here we analyse the impact it will have on mitigating disruption from Covid-19, along with the long-term implications of this significant fiscal stimulus.
Rumblings from the Treasury ahead of next week's Budget suggest tax grabs will be needed to fund increased spending, and it appears UK enterprise could be in the firing line. Here we articulate why targeting entrepreneurs and small business is ill advised.
In a difficult climate, customer acquisition and lead generation present stern challenges for UK retailers, and a great deal of marketing spend invariably gets directed towards getting feet through the door.
Over the last decade, there can be little dispute that the reputation of mainstream banks – and particularly the so-called ‘Big Four’ (HSBC, Barclays, Lloyds and RBS) – is at its lowest ebb.
The 2019-20 ISA season has been a damp squib, with banks disinterested in attracting savers’ cash, rates cut, and the stock market in freefall. However, the emergence of the IFISA means alternatives beckon for those seeking a stable middle ground in terms of risk and reward.
In a decade of slow recovery, the rapid rise in asset prices has been the standout. But how sustainable has price growth been, and could we be in the midst of a bubble?
Most people consider income tax to be a given, but in the UK it is barely two centuries old. In this article, we look at how this tax has developed over the years, and also why it is set to remain at the core of our tax system for many decades to come.
Open banking celebrated its second birthday last month, but has the ‘revolution for financial services’ that was promised actually come to pass? In this article, we look at the progress the initiative has made so far, and what the future holds in the face of high levels of scepticism.
On the face of it, a 'broken' energy market needed fixing, and the price caps introduced in early 2019 were heralded as the solution. But, one year later, have they actually helped consumers save?