Live on £4000 for a Year, 2009 Challenge, part 1

cw18

((hugs)) Marru - what a horrible phone call !! hope you've calmed down properly now.


I had two letters from Inland Revenue today (dated 4th Feb!) -- following a phone call I made to them on 27th Jan. My Tax code for this year was supposed to be lower than the standard one, due to them having to 'claw back' the tax I should have paid on about 16 weeks worth of (middle rate) IB last tax year -- but when I got the first payment advice from the Occupational Pension it was using the standard rate..... and my WPA (Widowed Parents Allowance) it also taxable, but isn't taxed at source.

So they've done something with my tax code for the rest of this year to get something closer to what I should have paid (but as far as I can tell could have reduced it further to get me closer ) -- but can't change it by enough to get us straight, as it would mean the OP scheme trying to deduct more tax than they're actually paying me :eek:

So for next tax year they've given me the standard allowance, then deducted the amount I should get in WPA (so I now know what it should be after the annual increase as it's more than 52x what I get now ), then made a further deduction for unpaid tax from last year (they won't have reclaimed all that was due from the IB) and this year (from the WPA). End result is I have a tax code for 2009/10 which equates to -£69 :mad: (When I phone IR the lady said "it's common for pensioner in receipt of a personal pension to have a negative tax code" -- 'scuse me, I'm not a "pensioner" just yet :rolleyes2 )

This means my income for the 2009/10 tax year has just come crashing down around my ears by about £800 on what I expected -- and 75% of that (£600) is in 2009. I realise I owe the money and it has to be paid, but I really didn't expect it to be as painful as this

Phoned and had a chat with them earlier, and they won't let me spread the outstanding from 2007/08 and 2008/09 over the next couple of tax years -- even though I explained this total loss of personal allowance on top of a major drop in income has me very worried about balancing my books !!!

To top it all I think they've underestimated the WPA for this tax year by a weeks payment (so I owe tax on another £106+) - but that will only become clear when I've done the Tax Return I've been told to expect (due to having money coming in from all over the place this tax year). It's years since I've done one, and I always used to leave them until last minute and then struggle -- so I'm determined to do it as soon as I get it this year, and am making sure I'm collecting together all the paperwork I think I'll need now



Diet wise I need to find out about reducing cholesterol -- had a basic test by the Heart Foundation last year, and it flagged up as slightly high. Not enough to refer me back to my GP, but enough they said I should get it rechecked at the end of this year !!!

enjoyfinancialchallenges

Gosh, posting twice in one week, thats an improvement for me!

No great changes for me except my car battery has now been sorted out, I had to buy a new one and tomorrow I'm off to the opticians.....more unexpected expenses....note to myself, I must take these things into consideration and put money away for emergencies so more additions to my original annual plan!

Marru, I've been reading and getting up to date with all the comments postings and empathised about your financial problems, etc. Yesterday I was reading another forum about the experiences of someone going through bankruptcy. If you go to the top of the page and click on the search button about it you may come across some very useful information on the subject and get support there. Cheers.

grandma247

hugs to marru and cheryl. There seems to be a lot of stress around just lately.
Oats are very good for reducing cholesterol.

Frugaldom

Hi guys,

Lynda, hope your neck/back doesn't get any worse, I've had whiplash and it took a couple of days before I even knew I had it, by which time I had declared myself fit and 'no harm done' to the clown that ran into me! :mad: I'd suggest you do what you can whilst you can, just in case it stiffens up over the next 48 hours.

My plans for the day evaporated as I went out on a jolly Freecycle jaunt that ended with a visit to DD's for cuppa. We now have a handmade wrought iron hanging rack that will be converted for growing all sorts of fruit/veg up/across/over/through/around and with space for the hanging baskets. :T Not only that, we've also got several large glass panels that have been salvaged from an old conservatory. Neighbour has already built a small greenhouse from some and we have the rest to build cold frames or, even, a lean-to greenhouse. :j I did spend some money whilst out, £10 in total. I was driving past garden centre and stopped in for some compost. They were selling the big 'bales' at 3 for £10, so that's me stocked up for all my seed planting. One more seed tray to add to the collection today, too, as the fish for tonight's dinner was packed in it. :rotfl:

LollopyBear

Hi all,

I'm back from the hen party weekend. For 2 nights in London, going out eating, drinking and partying til the wee hours on both Friday and Sunday, and train travel, I spent a total of £160 - which I am pretty pleased with as I was sure I would hit the £200 mark! I nearly caved and bought a dress in Camden but held strong and don't regret it. :T

My balance remaining for Feb is still pretty doable, though I don't mind being a little bit over this month.

Our washing machine has packed up, so we are now having to do our washing at DH's parents' house til we decide about a replacement. We are considering renting a small one for a few months.

Our immersion heater also packed up yesterday. Tonight I am having to wash my hair with water from the kettle. Oh this is back to basics now! :rotfl:

skint_chick

Marru - I would go on the bankruptcy board here -they are great and helped my friend get through bankruptcy from start to finish and answered all her questions. The change in her is miraculous - she used to be so stressed out from everyone calling to ask for money and now she's back to her old self. Life is too short to punish yourself for mistakes/decisions you made in the past and if bankruptcy will let you sort out your situation without spending the next 87years trying to pay a DMP then I say do it! You have the monkey to think of The worst that can happen with bankruptcy is you might have to pay a monthly payment towards your debts - but the bankruptcy peeps will help you with your SOA to minimise the chances of that.

My old job found out about my new job and so I have to resign -letter is already in the post so no more sick pay for me! Was chancing my arm anyway so it's a relief to finally have moved forward if a little scary that I'm officially no longer a career driven person, and a happiness driven person.

Skint_Lynne

Hi Guys,

Well, I've managed to log on. I'm in my hotel room, have had dinner and shower etc. First day is over, they just bombarded me with information. I've an early start tomorrow, the boss is picking me up at 6.15am:eek: , we are going to London. So it is around a 2 1/2 hour drive from here. The girls got on fine in the shop today, my friend looked in on them, but it wasn't too busy due to the bad weather.

I am shattered cause I was up early today, I'm just glad that I have the internet in this room or I would go mad. It's funny, you feel stranded when in a strange place without a car. I've no clue where I am, the sooner I get back to Glasgow, the better.

The good thing is that I have spent 2.99 today on a sandwich at the airport this morning. Nothing on dinner, free heating, free internet and hopefully I will not spend much at all this week.

Hugs to you all. Check in later. xx

Brighton_belle

bails wrote: »

Your ex-dining room sounds like it's really taking shape BB, looking forward to seeing it quote]
:eek: BB instantly thinks of the mile long list of things she wants to get done so that progress is actually evident. Forgot there was a formal forum inspection this weekend:rotfl: .

skintchick wrote:

I'm officially no longer a career driven person, and a happiness driven person.quote]
:T :Tgood one skintchick.
Marru I know nothing about bankcruptcy, but it sounds tough: I hope you find the help you need on the various forums.
cw - you are amazing to keep on top of all the various official sheannigins with regard your income /outgoings It must be those 39 spreadsheets:eek: .

The day has been consumed by form filling, as will tomorrow too on top of work,so nothing much to report.

Lynda - thank goodness it wasn't worse. Look after yourself these next few days as these things can come out it seems after a few days.
Lollobybear - sounds like you are prepared to wait - will you try freecycle for another washing machine?

sophiesmum_2

Hi SL - Sounds like a long tiring day, and another one ahead, you'd better get a good sleep tonight. I hate it when I have overnight hotel stays with work, never anywhere comfy to sit in the room except lie on the bed and then usually fall asleep because it is so boring. At least you have the laptop with you, and can call home so that is something:D
May turn out to be a money saving week for you;)

Just returned from my evening swimming session etc, have managed another no spend day I am managing most weeks to only spend at weekends now mostly which is helping. Clawing back some of the overspend from last month now, which was car tax and stockpiling - might even be in credit after this month

Kittikins

Cheryl sorry to hear the inland revenue are being horrible, why can't they take their time to sort out repayment, it's so unfair! You are such a strong person, I really admire the way you're handling all these challenges, and trust that you will come through these bad times very soon...

Good job I'm being very very careful with money (okay, apart from buying lunch of kitkat/pack of crisps as I was too tired to make packed lunch this morning and too busy to go and buy something healthy during the day, grr)...anyway, I digress. Came home to find that my dad's temporary roof repair was very temporary, water coming down through the loft hatch again, so have to get a builder in asap.

Good job I don't have a prospective purchaser's surveyor coming round tomorrow, silver lining and all that....