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

[LaurieFairyCake]

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.

I will Awkward - this is the first year I've paid tax in advance.

All of this is having a massive effect - which is why I sat down and counted it - we're over £3k overdrawn since the start of the year so clearly we're spending too much.

Now I know more fully that our fixed costs are so high I can address our over spending as clearly we're spending an extra 500 a month.

it sounds like you have everything all muddled up there , between your personal costs which I assume to be that high must include mortgage , but is it also cost of a business premises? and business costs which are surly tax deductible, you are referring to petrol and commuting costs, then say your dh has the car, I assume he's working too as you say you cant get shopping, you cant be spending both at same time, if its just you providing services then I assume dh not working for you, is he also self employed,? sounds like you need a good accountant to put your affairs in order and get as much tax relief as possible on those business costs

oh to have your financial problems!

More money going out than coming in? You want that?

OP, be prepared for a kicking. MN doesn’t like anyone earning more than minimum wage suggesting they might have money problems.

We were in a similar situation as @OrangeSamphire, lots of our outgoings linked to DD’s disability and despite having what seemed like it should be a generous take home, it disappeared pretty quickly. I couldn’t understand why until we looked at OH’s tax and discovered he was over paying because of a calculation they did a few years ago when he was self employed. Once it was sorted the difference to our income was quite significant.

I don’t know the answer, do you have a tax accountant who can look at it?

I see there is the usual having a pop at OP for having to nerve to earn a good wage.

The nastiness and envy is so predictable.

OP have you called the HMRC helpline?

Some people wouldn't have the money to pay in advance...if you haven't earned it, how can you pay it?!

Has the loan been going for a while? When we moved house, we had a loan we’d used for adaptions to our old house which we’d had for about 5 years. With the difference in interest rates, we were able to cut the loan payments in half by getting a new loan and stretching it out for an extra year.

Good grief ....your mortgage is eye watering! Are you tied in currently or could you get a new deal?

Todd - I provide my services to companies hence the commuting costs but also offset the costs of an office at my home. It's not muddled but for simplicity here I'm talking about our household disposable income.

I already deduct everything properly for tax - my closest friend is an accountant and showed me how to do it. I'm not going to pay for anyone to actually do it.

The tax isn't the same at all stucknoue PAYE is only paid on income you've already earned.

That's not the issue here.

How many days are your dogs in care?

OP, you need to stop dog daycare, you can't afford it! Take your dog for a decent walk morning and evening.
What is your actual combined income?
How many people are you feeding?
My DDs come to £1000 pcm (but we are mortgage free), this includes £500 on 2 car lease agreements, we spend £200 a week cash on food, petrol (2 cars), spending money for me and DH, and other bits and bobs. We don't use our cards unless buying big items, which we save up for. We manage to save £500 a month too.

Also, I don’t know how long you’ve had your mortgage for, but we shaved almost 400 off ours by remortgaging. We only bought the house 6 years ago, I was amazed at the difference in interest rates.

Yes, the loan ends next year (was a 'home improvement' loan so that when I moved in I could immediately start work)

Basically we were fine until I started paying tax in advance, literally not overdrawn at all - there must be so many people in this position

Can the dog care cost be cut in any way - a walker instead of daycare if possible .

Is the tax definitely right, you must be making big profits to be paying that per month.

Is the problem that your customers arent paying you?

Yes, the loan ends next year

Look at a new loan for it. That may well save you money.

I hope you find a solution - I agree with PP suggestion of spreading the loan as you are being hit with a double-whammy of loan and double tax.
However, there is light at the end of the tunnel - from December you can save half the tax amount, and your loan won't be forever.

I'd definitely look at your online shopping and see if you can switch down - many products don't make a noticeable difference except to your budget ie basics pasta, buying bulk packs of things like toilet rolls, supermarkets own brand cleaning stuff. Maybe try a "no spend" challenge on other things like clothes/toiletries/coffee to cut back for a few months?

£350 a month in doggy day care!!!!!??

Move to a cheaper house.

And as an accountant, I'd advise you to strongly separate your business income and expenditure to a separate account. Pay yourself an income from your profits. You May find you are o/d on business account only meaning the interest is tax deductible.

And paying tax in advance is only hard in yr 1. If you've overpaid then yr2 is easier. If it's about right then that's what it should be. Do a monthly income and expenses so you have an idea of what your profits will be for the year to make sure you save if you're not paying enough.

You have choices. Choosing to work whilst owning a dog and having a large mortgage are all choices. We all have to cut our cloth.

Oh, and definitely check your mortgage rate! London & Country are a free broker who can help find a good deal.

The tax issue is temporary though? Are you meticulous about saving the taxable part of your income in a separate account? Every time an invoice is paid, I hive off the tax % and as I earn roughly the same every year, give or take, then I've always got enough in the bank to pay the tax bill. The first year is hard no doubt, but if you save through it (which feels counter-intuitive) then it settles down.

My husband and I are pensioners. We'd be delighted to receive even half your disposable income as our total income!

Do you keep your business money separate? It's not very clear. If not then start doing this asap and pay yourself a wage.

Can you disclose your monthly incomings? How many DCs?

I would ditch the doggy daycare. Or shop around. That's really expensive.

Op are you a sole trader without a company? Even if you are I would really separate out a business account and a personal account.

Can you get a dog walker to pop in once a day instead of having the full day in doggy daycare?

I can't get my head around that this is your first year having to make tax payments on account yet you're earning so much from your business that your tax is £800. Is your business very new (is, last year)?