Panic! Sole trader in debt-advice please

Edinburghlass_2

I can only agree with the other that you are in the best business for either working from home or travelling to your clients as a good hairdresser is worth their weight in gold. My own hairdresser has recently moved house to one with a garage that she thinks she can convert into using as a salon to reduce her salon costs and I will be quite happy to continue using her.

Just one thing regarding your expenses https://www.call1899.co.uk is now cheaper than 18866 so you would be better setting up an account with them and if you call mobiles a lot also sign up for https://www.call18185.co.uk another of their sister companies.

fabianne

Hi again and more thanks for support
I have an additional problem as the Landlord of the premises has been in touch about rent payments that they did not receive for Jan and June(which I had truly not realised they had not been paid out and they took their time to notify me)-with Sept having been bounced by the bank also.I now owe them over £1200 and they are threatening action-I have till Dec to repay it or they will take further action.I intend to close this sat.Does anyone have any experience on Landlord/business tenant disputes? I wrote an email highlighting all the problems I have had with the premises,their tenants upstairs etc but that seems to be being swept under the carpet.
I have a solicitor but he will be expensive.

whatatwit

Hi Fabianne, I don't have any info about landlord/tenant disputes.
I can only wish you well in your change of premises.
Your landlord must have been aware that there was only 1 water meter for the building and should have advised you of this. It's a pity the tenants are awful, it would have been interesting to see what's in their lease as regards payments for water.
Have you written to United Utilities and advised them of the matter? they are ususally only too delighted to be able to charge for another address.

No doubt you already have done, but just make sure your insurance at home is made aware that you are operating a business from there.

Keep us posted on how it goes.

fabianne

Hi
United Utilities has sent a surveyor round,I took readings just before locked up for the night and first thing in the morning so there is no doubt they are using the water supply fed off that meter.
I agree that they must have known what was going on with only one meter and the last tenant did mention it-but said it had been sorted out.
I will check with the insurance company and have asked my landlord at home about working from here and he is fine with that-he is a client,so he can check I am still looking after the place well when he comes for a cut!

fabianne

Personal SOA

Rent 500.00
C tax 61.00
Gas 65.00} these inc backdated charges-they will reduce
Elec 62.00
Broadband 14.49
House Ins 24.72
Car Ins 65.20
Tv Lic 10.54
Inland rev ref 50.00
Mobile 1 35.57
barclaycard 106.00 balance approx £4200 APR 12.9%
water 10.00
food 300.00
din money 64.00
bus fare 16.00
mobile 2 20.00
fuel 30.00
misc 100.00
total 1554.52



Incoming 1321.08
-this includes wages,child benefit,WFTC and Csa payment just under £50 pw for 2 teenage kids.

My kids live with me full time-only one goes to stay with Dad alternate weekends.
I have a puppy but myself and my B/F share her expenses-he mostly pays the vet bills,food etc-I buy her treats,toys and replace the harnesses and bedding that she chews through.
I pay for all the kids expenses -food,clothing,glasses,bus fare,dinner money,clothing,mobile phones,school trips and social activities. He pays the minimum via the Csa-have an appeal currently being looked at,as he is lying about his income-but don't hold much hope as it is very hard to prove.

I live as cheaply as I can manage and although I used to go out and party a bit-not been out for more than a local curry/drink/pics for months now as I just cannot afford it.
As you can see,I am already down by £200 per month(not allowing for emergencies) and my overdraft is almost to it's limit of £2,500 currently at £2,300-so am getting very twitchy.
I will edit my business SOA as I have found more info for that.

Thanks for helping

fabianne

I also have made a list of my debts to summarise:

Overdraft £2,500 plus whatever bank fees they apply this week
Business Loan £3,000
Egg Card £4493.86
Mint Card £4254.38
Rent Arrears £1200.00
Bus Ins Arrears £800.00 (this amount is in dispute at the moment due to repairs that have been carried at my expense)
Supplier £600.00


Total £16,848.24

I also owe my car payment this month as the bank rejected the direct debit for that.I will check tomorrow what else they have not paid out.

freebird65

fabianne wrote:

Personal SOA

Rent 500.00
C tax 61.00
Gas 65.00} these inc backdated charges-they will reduce
Elec 62.00
Broadband 14.49
House Ins 24.72
Car Ins 65.20
Tv Lic 10.54
Inland rev ref 50.00
Mobile 1 35.57
barclaycard 106.00 balance approx £4200 APR 12.9%
water 10.00
food 300.00
din money 64.00
bus fare 16.00
mobile 2 20.00
fuel 30.00
misc 100.00
total 1554.52

Immediate thoughts are reduce that food bill - I believe there are tons of tips on the Old Style board? Am sure someone will be along to tell you exactly where. Also dinner money - can they not take sandwiches?

Also electric bill - I work from home, have all electric appliances (bar heating), run dishwasher, cooker etc and my bill is half that! Simple things like not leaving tv's on standby, always switching off lights when you leave a room will make a difference (I know that's easier said than done with teenagers).

Have you told them you're struggling? You may be surprised at their reaction - I'm sure they'd hate to think Mum was in trouble and will do their best, however little, to help out. Don't think of it as a sign of failure - you're only human - and I'm sure they'd rather know than think they were the cause of stressed out Mum.

Keep posting and all the best - your debts are not insurmountable and your doing something about it.

dottyanne

fabianne wrote:

I also have made a list of my debts to summarise:

Overdraft £2,500 plus whatever bank fees they apply this week
Business Loan £3,000
Egg Card £4493.86
Mint Card £4254.38
Rent Arrears £1200.00
Bus Ins Arrears £800.00 (this amount is in dispute at the moment due to repairs that have been carried at my expense)
Supplier £600.00


Total £16,848.24

I also owe my car payment this month as the bank rejected the direct debit for that.I will check tomorrow what else they have not paid out.

fabianne - are these you business debts then? what are your personal ones and the total in full - as a sole trader youre solely liable for ALL debts

fabianne

Hi dotty-

The personal ones are:
Overdraft: £2200
Barclaycard £4800 at 12.9% APR

Business + Personal = £23,000+

I have a phone appointment with Payplan tomorrow to discuss my debt problem and I have to get all my paperwork together tonight.
Also had a long discussion about moving my bank account over today,so feel like I am getting balls rolling and more positive.The manager has asked permission to do a Credit check-so will have to see what that turns up.I am desperate to get away from Barclays and will have to see what they can offer me in the way of accounts.

Freebird-I have sat and told my kids the full picture-they know I have been struggling.They do take sandwiches to school when they have a lunchtime PE session or activity etc,but sometimes they want a hot meal.
The electricity and gas is so high as they estimated it and when I gave my readings-they were a lot higher than expected.The house I live in has big rooms,high ceilings and stripped floorboards-and although lovely,is SO draughty and costs a lot to heat.I have started to put winter measures in place to make it toasty for winter-but cheaply.

I am determined to get out of this mess and thank you all for your support,help and advice-it is keeping me positive.

MasterBell_2

What kind of business is it that you do...
i was in the same situation, u failing would you not accepting it and not addressing the situation, which is good to see you are.
Is there no further scope on the ebay sales for this to be pushed and is there any possibility you can take your landlord to court on the basis of him breaking your contract, (surely with asbo neighbours and the water meter) he is at fault somewhere.
bank charges will be a good start to clear some immediate debt, but you making this move now and not further down the line is a far better long term decision also.