Newly released official figures show that the UK economy grew by 0.6 per cent during the last three months of 2014, at a higher rate than previous estimates indicated. Continue reading
Only four working days remain until the new tax year begins, so individuals are being urged to make the most of their tax allowances for 2014/15. Continue reading
As the UK government is working to respond to small business concerns over late payments, policymakers are also tackling another SME issue: lending. Continue reading
In a move that surprised the other political parties, Prime Minister David Cameron announced that there will be no rise in VAT if the Conservatives are re-elected. Continue reading
Following the announcement of the 2015 Budget, the new tax-free savings allowance will also apply to peer-to-peer lending and earnings.
The Government has confirmed that from April 2016 the first £1,000 of peer-to-peer earnings for many workers will not be subjected to tax, though a £500 restriction will be in place for higher rate taxpayers.
Top-rate taxpayers are ineligible and will still incur the typical 45 per cent tax rate on all their earnings.
At the Budget announcement, Chancellor George Osborne made it clear that non-Isa cash savings would benefit from tax relief; however, it was not clear as to whether or not the reforms would include lending transactions between peers, where investors lend money to numerous individuals through a funding platform.
Zopa, a leading authority in the sector, says it pays an annual return of 5.1 per cent on loans lasting up to five years, with interest paid as and when borrowers repay their loans.
With such a high interest rate available, peer-to-peer lending outperforms returns on cash savings products offered by most banks and building societies’ savings accounts.
Furthermore, peer-to-peer lending does not involve the same conditions as savings or current accounts such as a minimum deposit or account fees being charged.
According to Zopa, because the majority of people usually put approximately £6,000 in peer-to-peer, the type of lending has essentially become tax-free for many savers.
However, if a peer-to-peer lender also earns interest at their bank or building society, this will also count as part of their tax-free allowance.
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Small businesses have had a confident start to 2015, according to the first quarter results from the Federation of Small Businesses’ (FSB) Small Business Index. Continue reading
Chancellor George Osborne’s sixth and final Budget of this Parliament highlighted Britain’s impressive growth following the recession, as well as the rise in employment and falling debt. Continue reading
The end of the annual tax form will be announced by George Osborne today as he promises to bring in digital tax accounts for all individuals and small businesses. Continue reading