In the grand scheme of changes effected by the pandemic crisis, working from home is far more widely accepted than before. Put another way, Covid claims a victim in the FinTech resources space.
London’s TechHub has been forced into administration due to a revenue drain from startups feeling the pain of the Coronavirus pandemic.
Founded ten years ago as a co-working space at the heart of London’s Silicon roundabout, TechHub offered tailored support and events to help developing startups and entrepreneurs scale up. Companies to have passed through the TechHub ecosystem include the likes of Seedrs, FundApps, Callsign and SwiftKey.
Explaining the decision to shut up shop, founder and CEO Elizabeth Varley, says: “Unfortunately, with a significant reduction in revenue due to the impact of Covid on our member companies, and without an agreement from our major landlord to our proposals for a way forward, we are unable to continue.”
Historical Performance And IFISA Process Guide
That figure is the result of over £21 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 2019/20 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.