We will only report to HMRC as required under the ISA Rules, and will not take responsibility for communicating with HMRC on your behalf. You will still remain responsible for dealing with HMRC with regards to your own personal taxation.

Will Lending Works complete my tax returns?

No. This will remain your responsibility entirely. If you are unsure of what to do or how to do this, you should speak to an accountant or tax advisor.

Do I need to mention my Lending Works ISA in my tax returns?

Generally, (and provided you have complied with the ISA Rules) you will not need to declare income and gains from your Lending Works ISA on your tax returns. You should however discuss this with an accountant or tax advisor as we are unable to advise you on what you should or should not include in your tax returns.

If you need to contact HMRC, the number for the HMRC helpline is 0300 200 3312.

What is the Personal Savings Allowance?

If you are a basic-rate taxpayer you are able to earn up to £1,000 in savings income, including interest on peer-to-peer loans, tax-free. Higher-rate taxpayers are able to earn up to £500. This is called the Personal Savings Allowance. If you are an additional-rate tax payer, the Personal Savings Allowance does not apply to you.

This is not dependent on or connected to your Lending Works ISA but could be used side by side. For example, you could invest £20,000 of current-year subscriptions into your Lending Works ISA and any interest you receive on this will be tax-free. In the same tax year, you could also lend around £20,000 using your Classic Account (assuming an annual interest rate of 5%) and the interest you receive would also be tax-free provided you are a basic-rate tax payer, the interest in your Classic Account does not exceed £1,000 each year and you have no other interest income (for example, from a bank savings account). 

We suggest you seek advice from an independent financial and/or tax advisor should you have concerns or questions about the Personal Savings Allowance.