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How to reduce your tax liabilities for alternative lending companies

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The alternative lending business contains a number of specific tax issues and opportunities and it is understanding these, planning accordingly and meeting the compliance requirements that are going help you to minimise your tax liabilities. The areas that are likely to impact your business:

1. Corporation Tax

How is your business structured and do you have elements of your business off-shore.

2. Bad-debt provisions

Ensuring that you have sufficient reporting, controls and processes in place to optimise the relief you can get from this.

3. Research & development tax credits

You most likely have developed all or part of the systems that you are using.  You may be able to obtain tax credits.

4. VAT

The lending business generally is exempt.  However, the sale of leads and management charges may be a standard rated supply.   In addition you need to be aware of the reverse-charge provision if you are acquiring services from outside of Europe.

5. Interest

If you are funded by individuals then you need to consider withholding tax.

How can Wisteria help?

As long established accountants with a wealth of experience in the alternative lending loan industry, Wisteria can advise you on all areas of taxation affecting your business. Please contact us.

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