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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:
Original poster
LaurieFairyCake · 01/08/2019 11:27

About £400 is the normal tax I would pay month on month. The other £400 is paying in advance as HMRC assume I'm going to earn the same next year Hmm

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Original poster
LaurieFairyCake · 01/08/2019 11:29

Just redid our mortgage payment - we can't move. We are overpaying (yes, a choice as I have some health issues that are only going to get worse - which may make me unable to work)

So mortgage is 14 years now.

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gamerchick · 01/08/2019 11:30

Yeah this tax in advance thing is really unfair. I couldn't believe what the accountant was telling us. Pay tax bill for the year then 50% year ahead upfront. It's a bit eye watering as how can you predict future earnings when you're self employed? Any kind of shit can happen.

Reallybadidea · 01/08/2019 11:30

I can see that it sucks, but surely you were already spending at the limit of your income if this extra tax tipped you into your overdraft?

Original poster
LaurieFairyCake · 01/08/2019 11:32

Quite true Really, there wasn't much leeway

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Original poster
LaurieFairyCake · 01/08/2019 11:34

I live in a 2 bed flat, not got an opportunity to downsize

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coconuttelegraph · 01/08/2019 11:35

I'm not a tax expert but which months are you double paying for, my Dsis is in a similar position and I'm sure the way she explained it you didn't pay two lots at the same time, more like you paid some earlier that you would have done. Is that right?

furrytoebean · 01/08/2019 11:35

Tax on account is really unfair. It totally fucked me the first year.
Can you start a limited company to avoid it?

Original poster
LaurieFairyCake · 01/08/2019 11:37

It works out the same coconut - only paying one payment of about £800 but half of that is for now until April 20

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Original poster
LaurieFairyCake · 01/08/2019 11:38

No dc's at home. Just occasional top
Ups to uni students.

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AwkwardPaws27 · 01/08/2019 11:40

This is a temporary situation until the tax and loan are paid and you are doing the right thing by addressing it.
I would stop overpaying the mortgage in the short-term (and restart once you have paid off the loan and any overdraft).

LemonBreeland · 01/08/2019 11:42

So there are only two of you and a dog at home. There is no way you need to spend £600 a month on food. I spend around £400 for 5 of us and we don't scrimp. There are definitely ways to reduce that bill for sure.

Also consider not overpaying your mortgage until this first year of prepay tax is over.

DerelictWreck · 01/08/2019 11:43

No dc's at home. Just occasional top
Ups to uni students.

Then how on EARTH are you spending £600 a month on food?!

Original poster
LaurieFairyCake · 01/08/2019 11:45

The £600 on food covers everything - cleaning, laundry, all toiletries (including stuff the uni students nick Grin), £80 on dog food.

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Doyoumind · 01/08/2019 11:47

You're living beyond your current means. There absolutely will be ways you can cut back. Go through your budget line by line and be realistic about what is necessary and what's a luxury. It sounds like your used to a high standard of living and you need to be more realistic or suck it up and have more going out than in.

mussolini9 · 01/08/2019 11:48

OP, you need to stop dog daycare, you can't afford it! Take your dog for a decent walk morning and evening.

If the OP cannot afford dog daycare, she cannot afford a dog.
@Soontobe60 - were you seriously suggesting that the dog should be imprisoned without company or stimulus ALL DAY just to save money?

MarshaBradyo · 01/08/2019 11:50

That is so high it makes me think what if you had childcare on top, would be a lot more still

And also that a dog is v expensive if you’re working

Original poster
LaurieFairyCake · 01/08/2019 11:51

Doyoumind

If you don't count the dog as a luxury (I don't) then luxuries are:

7.99 on Now Tv
6.99 on Netflix

No holidays abroad for 18 years. Our holiday this year was Cornwall (cost £1000 for a cottage)

Everything else is insurances (9 in total)

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LonnyVonnyWilsonFrickett · 01/08/2019 11:51

stop overpaying till your loan is paid off.

Really put some focus into your food shopping, I'm lazy and certainly don't scrimp on food but that's a lot of money for two people.

Start to build travel costs into your invoice as well by the way. Your communting costs are high for a SE person. If you can't do that, make sure you're claiming properly to reduce your tax burden.

But you know, I'm still not sure your tax is right even with paying on account.

Original poster
LaurieFairyCake · 01/08/2019 11:52

Sorry, tv license £13

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Reallybadidea · 01/08/2019 11:52

Do you want ideas of ways to cut your spending or just a vent? Grin

MarshaBradyo · 01/08/2019 11:52

I have an accountant and am S/E now wondering why it hasn’t changed from paying online Jan 31st

MarshaBradyo · 01/08/2019 11:53

But yes I’d stop overpaying until you’re through tax and loan situation

INeedNewShoes · 01/08/2019 11:54

£600 on food a month for 2 people plus pets must surely mean you're buying lots of luxury items.

I spend more on food than I can really afford as I by organic/free range where possible and like good quality food but I do count it as one of our few luxuries.

Original poster
LaurieFairyCake · 01/08/2019 11:55

We're both veggies so yes, seems to cost loads

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