At some stage, we’ll stop pointing out the ever-faster tide of events bring the cyber and the digital into our homes and wallets. At some stage, but not yet. The latest snippet comes from our friends at news platform, Altfi.
The banking service is introducing Tide Accounting for UK members which will offer an end-to-end accounting and tax solution for small businesses.
Embedded within users’ accounts, the service will enable small businesses to take control of their business accounting, staying compliant and avoiding penalties, Tide says.
The automated accounting and bookkeeping services will provide real-time insights for users and will connect banking data and Tide’s existing finance and admin tools with Sage’s accounting and compliance services.
“Sage’s long and impressive record in accounting and compliance and their strategic alignment with Tide brings us a step closer towards our mission to make life easier for people who work for themselves, saving them time (and money) on their financial admin.”
Tide’s new ‘simple and affordable accounting tool’ will combine banking and accounting to streamline financial and compliance processes including self-assessment and year-end accounts.
Historical Performance And IFISA Process Guide
That figure is the result of over £24 million of loans facilitated on the site, as we bring individuals looking for a good return on capital together with carefully vetted small companies seeking funds for growth. Bear in mind that lenders’ capital is at risk. Read warnings on site before committing capital.
All loans on site are eligible to be held in a Money&Co. Innovative Finance Individual Savings Account (IFISA), up to the annual ISA limit of £20,000. Such loans offer lenders tax-free income. Our offering is an Innovative Finance ISA (IFISA) that can hold the peer-to-peer (P2P) business loans that Money&Co. facilitates. For the purposes of this article, the terms ISA and IFISA are interchangeable.
So here’s our guide to the process:
The ISA allowance for 2020/21 is unchanged from last tax year at £20,000, allowing a married couple to put £40,000 into a tax-free environment. Over three years, an investment of this scale in two Money&Co. Innovative Finance ISAs would generate £8,400 of income completely free of tax. We’re assuming a 7 per cent return, net of charges and free of tax here.
Once you have made your initial commitment, you might then consider diversifying – buying a spread of loans. To do this, you can go into the “loans for sale” market. All loans bought in this market also qualify for IFISA tax benefits.
Risk: Security, Access, Yield
Do consider not just the return, but the security and the ease of access to your investment. We write regularly about these three key factors. Here’s one of several earlier articles on security, access and yield.