Financial advice please

R

Robder

Active Member
Feel free to laugh at my expense -

Guess who budgeted for an £800 tax bill? (and smugly put £1100 aside thinking he'd have some change and a nice spend thrift afterwards)...

Yes me.

...and having completed my tax return, it appears I've completely b0lloxed up my figures.

Turns out I owe over £3000 - so am £2k in debt at the start of a year when I'm just about to move in on my own.

Oops. :lol:

Not so bad you might say because everyone's in debt these days - but as a bolt from the blue it sucks.

...

My outgoings are seriously stretched at the mo as I'm on my own in London (no I'm not getting a lodger) so can't really afford to start spiralling into debt.

I also think being in the red and not taking steps to deal with it can be a real drain on your energy - almost like walking around with a black cloud over your head.

Soooo - quick fix solution (since a mortgage is kinda like a socially acceptable debt if there ever was one :lol:)...

Is it sensible to get a mortgage top up over the remaining term (approx 25 years) to pay off HMRC(unts) and have a bit extra to put in a high interest account should I wish to go travelling at some point?

Or is that a ridiculously stupid idea?

sh1t with numbers here and just want the whole thing dealt with.

Thanks! 8)
 
So... let me get this straight. You want to go deeper into debt so as to not be in debt to HMRC?!

Doesn't sound like a good plan to me.

When are taxes due?
 
Angie24 said:
Is a mortgage holiday a possibility for a few months until you pay off HMRC?
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Nope - already enquired.

Apparently I don't fit the 'unforseen circumstances' criteria.

...and Morbs - basically yes - I just want the debt out of my hair and will want a lump sum in a few years to travel.

Is there an alternative? My quality of life will be severely hampered if I commit to a short term loan of £100 per month for example.

Urgh - most boring thread ever, sorry. :lol:
 
im assuming its for 2010/2011 so its due by the 31st this month , you cant be in debt to HMRC they dont really allow it , just fine you ridiculous amounts if u dont pay or you go to court.

Does that include having to put a deposit down for next years tax bill? they sting you for that which i had no idea about.

Im also shiz at all this tax / finance stuff. the only thing Ive done which is pretty much foolproof is putting away the tax i owe on each invoice as i get paid them. so I have an account which just holds my tax savings which i use to pay my tax return each year. Get abit of a payback hopefully too

Hope it all works out ok
 
As long as you've got plenty of equity in your property and your deal allows you to get the money at today's low interest rates, why not?

If interest rates had moved about a bit and you owed already £3k more on your mortgage now, would you even notice?
 
MiniMarc said:
I have an account which just holds my tax savings which i use to pay my tax return each year. Get abit of a payback hopefully too
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That's what I smugly did - but seriously underestimated things.

:lol: Still have my health - refuse to get bogged down in doomful thoughts - just want it dealt with.
 
Buckley said:
As long as you've got plenty of equity in your property and your deal allows you to get the money at today's low interest rates, why not?
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Yeah that's what I figured...and wanted feedback on whether I was being ridiculous.

Thanks all. 8)
 
Long term interest free credit card.

Not sure if HMRC let you pay this way but it is possible to piggyback money onto other forms of payment I believe.

Then, cut the card up, pay off the interest and any additional that you can a little each month. Gotta be strict with it though.

Term finishes then get another card.
 
Came to senses.

A 5k loan against mortgage = approx £30 a month for 25 years. :eek:

AS IF.

Bloody currently boiling over Top Shop guy, Bono and Vodafone et al.
 
Im a financial adviser, and as a rule of thumb if your self employed you should aim to put 30-40% of everything you earn into a savings account for Tax and National Insurance. That way you dont get surpirsed by a tax bill. Hindsight is a wonderful thing.

How you pay the bill depends on what's affordable. Ultimately it looks like you'll need some form of credit to pay it off.

Credit card = crazy interest rate, plus you need good self control not to spend more on it, and over pay the minimum.

Personal Loan = rates of about 9%, over 4 years £2k will cost you £50p.m

Mortgage Further Advance = (Assuming you have equity, living in London thats likely) If you do it on a capital and interest basis, its like a personal loan but on mortgage rates, your mortgage company should allow you to choose an appropriate term i.e. 10 years, 15 years. But in the long run you may end up paying more interest than a short term personal loan. Alternatively you can do intertest only and it just increases the amount you owe on your mortgage and your monthly payment.

Nobody likes debt, but if you have to choose makes sure you balance the affordability with the total amount of interest you'll end up paying.
 
ashton said:
Im a financial adviser, and as a rule of thumb if your self employed you should aim to put 30-40% of everything you earn into a savings account for Tax and National Insurance. That way you dont get surpirsed by a tax bill. Hindsight is a wonderful thing.

How you pay the bill depends on what's affordable. Ultimately it looks like you'll need some form of credit to pay it off.

Credit card = crazy interest rate, plus you need good self control not to spend more on it, and over pay the minimum.

Personal Loan = rates of about 9%, over 4 years £2k will cost you £50p.m

Mortgage Further Advance = (Assuming you have equity, living in London thats likely) If you do it on a capital and interest basis, its like a personal loan but on mortgage rates, your mortgage company should allow you to choose an appropriate term i.e. 10 years, 15 years. But in the long run you may end up paying more interest than a short term personal loan. Alternatively you can do intertest only and it just increases the amount you owe on your mortgage and your monthly payment.

Nobody likes debt, but if you have to choose makes sure you balance the affordability with the total amount of interest you'll end up paying.
Click to expand...

Good advice - thanks! 8)
 
ashton said:
Im a financial adviser, and as a rule of thumb if your self employed you should aim to put 30-40% of everything you earn into a savings account for Tax and National Insurance. That way you dont get surpirsed by a tax bill. Hindsight is a wonderful thing.
Click to expand...

thats what i did put 30% away of every invoice , might not have explained it too well above
 
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