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  • FIRST POST
    • Bobarella
    • By Bobarella 25th Jul 16, 7:16 PM
    • 10,568Posts
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    Bobarella
    Budget Wars - A New Hope (with apologies to George Lucas)
    • #1
    • 25th Jul 16, 7:16 PM
    Budget Wars - A New Hope (with apologies to George Lucas) 25th Jul 16 at 7:16 PM
    A New Hope is a very fitting title for my first ever DFW diary. For the first time in around 18 months I really have hope. I am one of those people who has always seen September as the start of the year. Because of back to school I suppose. And this year is the first September I can honestly say I am 100% looking forward to in years.

    My situation is complicated but to simplify, I took the enormous step to not only become self employed but to sell my family home to finance my new business in 2011. I turned my back on a very well paid career to go out on my own.
    In that period I have had many challenges. Gone to hell and back owing wages and HMRC. Dont worry the wages were paid back long ago as quickly as I could. And I repaid HMRC.
    The stress of being responsible for other peoples lives is intense if you've never been there. At my lowest point I deactivated my voicemail to avoid the energy company being able to contact me.

    At one point I owed around £40,000 all business related. Primarily on a loan, but some CC.

    Time and again I bashed my head against my mental bars and wondered if I could physically carry on. But I did. Through hell and high waters. Quite literally in fact....

    This last year has not been easy. I worked as the sole employee of my business during my entire pregnancy with DD and went into labour whilst still at work. When my baby was 4 months old I got seriously ill and spent a week in hospital. My lovely FIL was diognosed with the big C 2 months ago. And life has wobbled along precariously as always.

    The reason for my new hope is I finally made a big decision. To stop the business I am running & build another. It wont be easy but it will get me out of the hole I am in & allow me to take on paid employment around the new business. I have 4 days left of my old situation and then good night vienna!

    I love MSE. It and the people of it have been such a comfort. And now I am hoping to use this diary as a place for me to record my baby steps towards a life less stressful, adrenaline filled & chaotic.

    Bob
    Last edited by Bobarella; 25-07-2016 at 7:34 PM.
    " Your vibe attracts your tribe"

    Debt neutral 27/03/17 from £40k in the hole 2012.
    Roadkill 17 £56.58 2016-£62.28 2015- £84.20)
    RYSAW17 £1900 2016 £2,535.16 2015 £1027.20
Page 67
    • boxofpaws
    • By boxofpaws 9th Mar 17, 10:14 PM
    • 364 Posts
    • 1,505 Thanks
    boxofpaws
    I also know what you mean about the PADs, but it obviously worked for you, here you are virtually debt free. Definitely a good thing
    Debt 03/01/17 = £42000
    Debt today = £33494
    • Bobarella
    • By Bobarella 9th Mar 17, 10:17 PM
    • 10,568 Posts
    • 69,012 Thanks
    Bobarella
    Thanks Paws
    " Your vibe attracts your tribe"

    Debt neutral 27/03/17 from £40k in the hole 2012.
    Roadkill 17 £56.58 2016-£62.28 2015- £84.20)
    RYSAW17 £1900 2016 £2,535.16 2015 £1027.20
    • NoOneAround
    • By NoOneAround 10th Mar 17, 10:01 AM
    • 1,493 Posts
    • 7,210 Thanks
    NoOneAround
    [QUOTE=Bobarella;72222119]Believe me NOA I don't want to take on outside work. But being left with a gaping hole in my budget for April means one way or another filling it. You know the game, if you don't pay the business bills there is no business. Hence my past situation getting into personal debt to pay wages and stock.

    Thank you. MIL has spent all of the last week in hospital. Her underlying condition was causing issues. They've moved her op up thankfully. They kept trying to send her home! To a husband who is barely coping with his own medical woes. But he and she both dug their heels in and said no! She can't go home till they make her feel well again. Hopefully the op will do that.
    QUOTE]

    I know exactly - it is really hard. You are doing brilliantly juggling it all.
    Good for them! all the best wishes for a speedy op and recovery.
    NOA
    x
    Feb2014 Total unsecured debt £72,520>>01/06/16 £68166>01/04/17 £67,262=7.25%PAID
    Mortgage Jan14=209,800 Jan15=£200,300Jan16 £190,800 Jan17£180,700
    Health/Fitness Challenges Priority#1 Stay Fit and healthy - whatever it takes
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    • Bobarella
    • By Bobarella 10th Mar 17, 10:28 AM
    • 10,568 Posts
    • 69,012 Thanks
    Bobarella
    Thanks NOA
    " Your vibe attracts your tribe"

    Debt neutral 27/03/17 from £40k in the hole 2012.
    Roadkill 17 £56.58 2016-£62.28 2015- £84.20)
    RYSAW17 £1900 2016 £2,535.16 2015 £1027.20
    • Bobarella
    • By Bobarella 11th Mar 17, 2:28 PM
    • 10,568 Posts
    • 69,012 Thanks
    Bobarella
    Bad Times ahead
    Hi All

    I have had the bad news I have been dreading for months. My new business rates bill came in today, and they have increased my rateable value from £9,100 to £14,750 (£5,650 increase)

    There is transitional relief of £2,156 & small business relief of £393.45 but this still moves my payments up by £175 per month. Meaning a total payment of £363 each month, for nothing. I literally get nothing for that.

    So, April is going to be hideous. £400 down already, and £175 on top of that to find to just make the bills.

    My only hope at the moment is that they have miscalculated the size. They have me down as 84 square meters, and I have been told by an Architect who used the property for an exhibition that they made the premises 66 sqm. But visually I have no idea what that looks like.


    As they work the bill out based on retail zones, A,B, C, I need to go there and measure each one as they would, and challenge the bill. You have until the end of March to appeal.

    The worry extends to the fact that this 'transitional relief' could be pulled at any time, so next year I could be looking at copping for a lot more of the bill.

    At this point I dont know what to think. I paid a small fortune from my own pocket to renovate my unit 5 years ago. Ok, the first business didnt work. This one, is 7 month in. So far, its not exactly lighting the world on fire, but is showing signs of growth.

    Do I take it as an opportunity to give up? Before I end up being dragged back to the bad old days by the seat of my pants.

    Do I fight it? The raise effectively means I'd be doing around 2 events for free a month.

    Answers on a postcard....

    Right and on that note Im off to work! Back later.

    Bob
    " Your vibe attracts your tribe"

    Debt neutral 27/03/17 from £40k in the hole 2012.
    Roadkill 17 £56.58 2016-£62.28 2015- £84.20)
    RYSAW17 £1900 2016 £2,535.16 2015 £1027.20
    • crazy_cat_lady
    • By crazy_cat_lady 11th Mar 17, 2:34 PM
    • 3,318 Posts
    • 27,402 Thanks
    crazy_cat_lady

    Oh Bob I am so sorry to read this.
    Definitely appeal it - you have nothing to lose there. I'm sorry but I don't have any other advice to offer you - I just don't have the common sense for running my own business and hate making big decisions.
    Let the news sink in though, before you decide - and get the appeal on the go.
    NST June#24 NSD 8/15 RYSAW17 #1 £412.74 20p Savers #88 £1 a day for Xmas # DFD 6 Nov 15 - paid £28,447
    • hugglemonster
    • By hugglemonster 11th Mar 17, 2:43 PM
    • 262 Posts
    • 1,231 Thanks
    hugglemonster
    HI Bob, sorry to hear this I too have no idea about running my own business but I definitely wouldn't make any decisions or plans until you have done the measurements and challenged the bill.

    The business is still relatively new but it seems like word of mouth is getting out there and I'm sure it will pick up over the next few months. Do you do an annual review when you get to that point in time, only then can you see the progress you have made and perhaps the leaner times and maybe think about how you can work on these.

    Just thinking off the top of my head, hope the work today goes well.

    H x
    Last edited by hugglemonster; 11-03-2017 at 6:00 PM.
    Debt: Overdraft 2 £1200/ now £770
    Overdraft 1 £2200 Credit card £2200 Computer £646.52 - PAID!!
    Emergency fund: £50 London savings: £100
    • f0xh0les
    • By f0xh0les 11th Mar 17, 5:56 PM
    • 842 Posts
    • 5,967 Thanks
    f0xh0les
    Oh Bob!

    Do you not qualify for the small business rate relief or the £50 cap from the budget?
    MFW May£118,340 A£117 S£116 N£115, D£114 J£114 Feb £113,500 M £112,800 A112,250 MAY £111,600 - next goal- £110k) SPC #59 Very Special Agent Womble #15 NST#9 Competition wins..a kids book Free Amazon vouchers £13 YouGov £1.25 (£50 June) Tesco £15.00 Mr Morris £20
    • greent
    • By greent 11th Mar 17, 6:02 PM
    • 5,944 Posts
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    greent
    Definitely appeal - that's a big increase - and a lot of sqm difference x
    I am the master of my fate; I am the captain of my soul
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    • Bobarella
    • By Bobarella 11th Mar 17, 6:23 PM
    • 10,568 Posts
    • 69,012 Thanks
    Bobarella
    HI Bob, sorry to hear this I too have no idea about running my own business but I definitely wouldn't make any decisions or plans until you have done the measurements and challenged the bill.

    The business is still relatively new but it seems like word of mouth is getting out there and I'm sure it will pick up over the next few months. Do you do an annual review when you get to that point in time, only then can you see the progress you have made and perhaps the leaner times and maybe think about how you can work on these.

    Just thinking off the top of my head, hope the work today goes well.

    H x
    Originally posted by hugglemonster
    Thank you Huggle it is scary. The pattern seems to go on and on. You have an average month, nothing spare, then something goes wrong, and yet again you are dipping down the back of the sofa for loose change. Then another few average months and rinse and repeat. That's how I got into debt before. Things were promising so of course you shell out and keep going. But in reality the bills keep coming and you can't catch a break.

    But I'm trying hard not to bundle the old with the new. And seeing them as two different situations.

    Oh Bob!

    Do you not qualify for the small business rate relief or the £50 cap from the budget?
    Originally posted by f0xh0les
    I am getting small business rate relief. But it's not much at all this year. And transitional relief. It still presents a huge increase. What is the £50 thing??


    Oh Bob I am so sorry to read this.
    Definitely appeal it - you have nothing to lose there. I'm sorry but I don't have any other advice to offer you - I just don't have the common sense for running my own business and hate making big decisions.
    Let the news sink in though, before you decide - and get the appeal on the go.
    Originally posted by crazy_cat_lady
    Thanks Cat I'm definitely going to appeal. And look for advice everywhere I can.
    " Your vibe attracts your tribe"

    Debt neutral 27/03/17 from £40k in the hole 2012.
    Roadkill 17 £56.58 2016-£62.28 2015- £84.20)
    RYSAW17 £1900 2016 £2,535.16 2015 £1027.20
    • Treadingonplaymobil
    • By Treadingonplaymobil 11th Mar 17, 7:08 PM
    • 754 Posts
    • 6,156 Thanks
    Treadingonplaymobil
    Oh Bob, how utterly crap, I really feel for you. I have no sensible advice particularly, as I don't know your exact situation, but I would suggest gathering all the information you can, then reviewing the best case scenario (successful appeal etc) and the worst case scenario (transitional relief only lasts 1 year) and look at what your outgoings will look at at each extreme, and somewhere in the middle, and set some review dates and income thresholds for continuing vs packing it in for each scenario. Everything looks better with a definite plan in place.
    £67,031.92 is a frightening number indeed... The debt free diary of one family and their enormous debt
    LBM debt on 12th Feb 2017/DFD: £58,608.13/1st Dec 2026
    debt on 6th June 17/DFD: £55,820.43/1st May 2025
    • Bobarella
    • By Bobarella 11th Mar 17, 7:17 PM
    • 10,568 Posts
    • 69,012 Thanks
    Bobarella
    Definitely appeal - that's a big increase - and a lot of sqm difference x
    Originally posted by greent
    I must admit I have no real idea how big that would be in terms of an extra room in your home, or how many tables that much area could take.
    " Your vibe attracts your tribe"

    Debt neutral 27/03/17 from £40k in the hole 2012.
    Roadkill 17 £56.58 2016-£62.28 2015- £84.20)
    RYSAW17 £1900 2016 £2,535.16 2015 £1027.20
    • Bobarella
    • By Bobarella 11th Mar 17, 7:18 PM
    • 10,568 Posts
    • 69,012 Thanks
    Bobarella
    Oh Bob, how utterly crap, I really feel for you. I have no sensible advice particularly, as I don't know your exact situation, but I would suggest gathering all the information you can, then reviewing the best case scenario (successful appeal etc) and the worst case scenario (transitional relief only lasts 1 year) and look at what your outgoings will look at at each extreme, and somewhere in the middle, and set some review dates and income thresholds for continuing vs packing it in for each scenario. Everything looks better with a definite plan in place.
    Originally posted by Treadingonplaymobil
    Thanks lovely. I suppose hope for the best isn't really much of a strategy
    " Your vibe attracts your tribe"

    Debt neutral 27/03/17 from £40k in the hole 2012.
    Roadkill 17 £56.58 2016-£62.28 2015- £84.20)
    RYSAW17 £1900 2016 £2,535.16 2015 £1027.20
    • Treadingonplaymobil
    • By Treadingonplaymobil 11th Mar 17, 7:35 PM
    • 754 Posts
    • 6,156 Thanks
    Treadingonplaymobil
    Thanks lovely. I suppose hope for the best isn't really much of a strategy
    Originally posted by Bobarella
    It's faintly possible there are better business strategies out there
    £67,031.92 is a frightening number indeed... The debt free diary of one family and their enormous debt
    LBM debt on 12th Feb 2017/DFD: £58,608.13/1st Dec 2026
    debt on 6th June 17/DFD: £55,820.43/1st May 2025
    • chanie
    • By chanie 11th Mar 17, 8:53 PM
    • 1,547 Posts
    • 7,297 Thanks
    chanie
    What crappy news. I really don't know how small businesses manage to survive, I really think the government need to do more to support little businesses.

    After watching 'can't pay, well take it away' on TV, I've made a point of trying to support local businesses by shopping locally. Admittedly, I do most of my shopping in supermarkets, but I do try to spend in local businesses where I can.
    2017 challenge to save £800
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    • mummytogirls
    • By mummytogirls 11th Mar 17, 9:32 PM
    • 5,217 Posts
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    mummytogirls
    What a nightmare Bob. Totally agree appeal appeal appeal xx
    Mummytogirls x

    £23164.32 - 12/12/10
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    • Bobarella
    • By Bobarella 11th Mar 17, 9:38 PM
    • 10,568 Posts
    • 69,012 Thanks
    Bobarella
    It's faintly possible there are better business strategies out there
    Originally posted by Treadingonplaymobil



    What crappy news. I really don't know how small businesses manage to survive, I really think the government need to do more to support little businesses.

    After watching 'can't pay, well take it away' on TV, I've made a point of trying to support local businesses by shopping locally. Admittedly, I do most of my shopping in supermarkets, but I do try to spend in local businesses where I can.
    Originally posted by chanie
    Thank you for that Chanie probably on a wing and a prayer a lot of the time. I appreciate your efforts to support as well.
    " Your vibe attracts your tribe"

    Debt neutral 27/03/17 from £40k in the hole 2012.
    Roadkill 17 £56.58 2016-£62.28 2015- £84.20)
    RYSAW17 £1900 2016 £2,535.16 2015 £1027.20
    • Bobarella
    • By Bobarella 11th Mar 17, 9:40 PM
    • 10,568 Posts
    • 69,012 Thanks
    Bobarella
    What a nightmare Bob. Totally agree appeal appeal appeal xx
    Originally posted by mummytogirls
    Thank you, I will.
    " Your vibe attracts your tribe"

    Debt neutral 27/03/17 from £40k in the hole 2012.
    Roadkill 17 £56.58 2016-£62.28 2015- £84.20)
    RYSAW17 £1900 2016 £2,535.16 2015 £1027.20
    • Purplemumof2
    • By Purplemumof2 12th Mar 17, 6:55 AM
    • 4,724 Posts
    • 15,127 Thanks
    Purplemumof2
    Oh Bob, sorry to read that. Definitely appeal. X
    Official DFW Nerd Club - Member no. 791 - Proud to be dealing with my debts
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    • Bobarella
    • By Bobarella 12th Mar 17, 8:31 AM
    • 10,568 Posts
    • 69,012 Thanks
    Bobarella
    Oh Bob, sorry to read that. Definitely appeal. X
    Originally posted by Purplemumof2
    Thanks. I will.
    " Your vibe attracts your tribe"

    Debt neutral 27/03/17 from £40k in the hole 2012.
    Roadkill 17 £56.58 2016-£62.28 2015- £84.20)
    RYSAW17 £1900 2016 £2,535.16 2015 £1027.20
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