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Original poster

I have just added up all my direct debits and it comes to nearly 5k a month!

225 replies

LaurieFairyCake · 01/08/2019 10:11

I cannot believe it's so high! No wonder my disposable income is so small. £4667 a month!

I've included all fixed costs that I can't do anything about (but NOT petrol and commuting costs which I also can't do much about, or food which is about £600 a month)

It wasn't as bad as this a few months ago but that bloody HMRC thing where they now make self employed people (who earn more than £1000 a year profit) pay on account - actually in ADVANCE of earnings has totally fucked me! Why the hell am I paying tax on money I've not even earned yet!

I'm looking through them and there's not much I can do anything about unless I want to not have my house insured or dogs insured.

OP posts:
DullPortraits · 01/08/2019 10:16

Wow! First world problems eh Hmm

coconuttelegraph · 01/08/2019 10:17

Are you asking how you can manage on nearly £5000 a month?

DullPortraits · 01/08/2019 10:18

And only just under 5k disposable income Sad heartbreaking isn't it

Tutlefru · 01/08/2019 10:20

I think OP meant that £4667 is that her DD total?

EskewedBeef · 01/08/2019 10:20

You could live somewhere cheaper if you really wanted to save money.

user1483387154 · 01/08/2019 10:21

oh to have your financial problems!

Starrynights86 · 01/08/2019 10:21

@LaurieFairyCake that first year of provisional tax (what’s it’s called in NZ) paid in advance is awful, you basically get whacked for two years of tax in one year.

bernietaupinspen · 01/08/2019 10:23

And only just under 5k disposable income

That figure surely refers to the direct debits?

OP, what the fuck are you paying each month?

Original poster
LaurieFairyCake · 01/08/2019 10:23

Yes, that's just direct debits!

There are so many that are direct business expenses and insurances that have just gone up and up over the years - about £700 (not including the tax in advance)

OP posts:
Gingerkittykat · 01/08/2019 10:24

Is your income after direct debits £4667 or your overall income?

I'm sure if you were to post your income vs outgoings people would help you economise.

Original poster
LaurieFairyCake · 01/08/2019 10:25

If only I could edit that first paragraph Grin

My disposable income to pay for food, petrol, commuting for me (£160 a month) is less than a thousand.

Unexpected expenses like clothes, presents, the odd £20 meal out is putting me actually overdrawn!

OP posts:
AwkwardPaws27 · 01/08/2019 10:26

The HMRC thing is a pain, but unfortunately not one you can change - can any of the other expenses be switched/ negotiated down?

I know it's difficult to change pet insurance (due to excluding pre-existing conditions) but have you checked your other insurance / utilities / mortgage product etc are on good deals - Money Saving Expert have great resources for finding better deals.

I called my internet provider last week as they were increasing my bill by £4 a month, I was only on the phone for about 15 minutes and negotiated £11 a month off.
I switched my energy provider and pay £80 a month, whereas the previous provider was increasing it to £98.
It all seems like small amounts but it adds up.

For food - you don't say how many people that £600 covers (so ignore me if you have a big family), but could you switch to Aldi / buy less brands to cut it down? We spend £180 per month for 2 adults, including top-up shops, packed lunches and cleaning products.

Original poster
LaurieFairyCake · 01/08/2019 10:27

I can't switch to Aldi, it's not open when I'm not working (dh has the car at work) - get our food delivered by whoever's cheapest.

OP posts:
Original poster
LaurieFairyCake · 01/08/2019 10:29

I'm with talk talk for broadband £25 a month

OP posts:
Original poster
LaurieFairyCake · 01/08/2019 10:31

Is there really no way to change the HMRC thing? I'm paying a whole years worth in 7 months meaning come Christmas I then don't pay anything until May when I do my new tax return - and then the cycle repeats.

OP posts:
TheFlis12345 · 01/08/2019 10:33

Why are business expenses coming out of your personal income? You really should be keeping the two completely separate.

Original poster
LaurieFairyCake · 01/08/2019 10:34

Because I do simplified tax. It's just me offering services.

OP posts:
stucknoue · 01/08/2019 10:38

Your problem is your living costs - I thought mine were high at £1800 a month! The tax is the same as mere mortals on paye pay - we pay it in the month we earn it not the following year so no sympathy there.

LoafofSellotape · 01/08/2019 10:40

How many people does the £600 a month on food feed?

Limer · 01/08/2019 10:41

Can you give us a breakdown of the £4667?

Happyspud · 01/08/2019 10:42

Your mortgage must be massive??

OrangeSamphire · 01/08/2019 10:45

I sympathise. Paying tax on earnings you may never see, and then waiting a year to get it back if hmrc’s prediction of your future tax liability is wrong, totally and completely fucks with household financial planning.

I’m in the same situation. Add to that a partner whose income is 50% based on bonuses that might or might not show up and it’s a rocky ride.

Our mortgage is big (£1,500 a month) because we need a large house to accommodate our family plus disability adaptations.

We have debt from paying for said disability adaptations being repaid at £700 a month.

Car = £350 a month.

Add another £700 a month on top for utilities and council tax.

And that’s before we’ve fed or clothed anyone. And then there’s my hmrc bills Sad

Original poster
LaurieFairyCake · 01/08/2019 10:46

stuck

No, we're now paying it in advance. I'm paying the rest of this years tax now - 6 months before I've earned it. Confused

OP posts:
AwkwardPaws27 · 01/08/2019 10:46

Can you save 50% of the usual HMRC charge from December to May, and then use that to pay half of the amount each month for the rest of the year? That way you spread your tax out over 12 months rather than six? I know it won't help right now but you'll feel the benefit next year.

Original poster
LaurieFairyCake · 01/08/2019 10:50

Mortgage is £2100. Next biggest expenses after that are my tax £800, loan (finishes next year £430, dog daycare £350

Then council tax £150, gas/electric £80 - everything else is then around the £50 mark

OP posts: