P2P Income Statement 1st May 2017

Latest Income Statement

This is the first income statement so I’m going to show some history and how the current position was reached.

Ratesetter

I invested the required £1000 on 21st May 2016. This required to be invested for a minimum of a year to receive the £100 bonus in addition to interest of 3.5%. The loan was repaid early so there’s currently £1034.52 sitting in my Ratesetter account. Within a few days the £100 bonus should be added and then I’ll make a decision on the next step.

Lendinvest

I started investing with Lendinvest on 10th October 2016 and added various sums over the back end of 2016 and through 2017 to the current date. Interest payment have all been made on time as follows:

October 2016: £0.76

November 2016: £3.62

December 2016: 5.69

January 2017: £11.18

February 2017: £10.35

March 2017: £15.80

April 2017: £31.04

Total to Date: £78.44

LendingCrowd

I started investing with LendingCrowd on 11th November 2016, adding various sums on the way. Interest payments have been as follows:

November 2016: £0.07 – £0.01 Service Fees = £0.06 Net

December 2016: £1.75 – £0.17 Service Fees = £1.58 Net

January 2017: £20.10 – £2.21 Service Fees = £17.89 Net

February 2017: £21.30 – £2.29 Service Fees = £19.01 Net

March 2017: £37.42 – £4.18 Service Fees = £33.24 Net

April 2017: £41.33 – £4.63 Service Fees = £36.70

Total to Date: £108.48

There have so far been 3 loans put in arrears and two which have late payments. In arrears means a loan repayment is late by a minimum of 45 days. Late simply means at least 1 day late. None of these have yet moved to recovery and LendingCrowd are pursuing the borrower for repayment.

FundingSecure

I started investing with FundingSecure on the 8th April 2017 and have added amounts since then. I am currently invested in 5 loans, all of them types of property or land. Interest payments to date are:

April 2017: £21.29

 

Net Interest Payments and Tax

The total interest payments for the latest full month (April 2017) are £89.03.

On reaching this level it’s worth thinking about taxation.

Your allowance for earning interest tax-free is made up of the following:

  • Personal Allowance
  • starting rate for savings – depending on your other income
  • Personal Savings Allowance – depending on your Income Tax band

You can use your Personal Allowance to earn interest tax-free if you haven’t used it up on your wages, pension or other income.

The current personal allowance (tax year 2017-2018) is £11,500 per year.

You get an allowance of £5000 as a tax free savings income band in addition to the personal allowance.

So your total allowance is £16,500.

This means that if your other income is greater than £16,500 then you are not eligible for the starting rate for savings.

If you other income is less than £16,500 then any £1 of other income above the personal allowance reduces your starting rate for savings by £1. Confused? So was I……………so here’s an example:

Earnings from salary = £13,000

Interest from savings = £1,100

You have earned £1,500 over the personal allowance £13,000 so your starting rate for savings is reduced by £1500.

Your remaining starting rate for savings is (£5000-£1500) = £3500.

 

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