"Simply not solvent!

whatatwit

Seaxwyn, it does sound as though you are seeing what you need to do to get back in control.

Woo Hoo in winning the tree, this could be the start of things changing for you.

When is your year end and how quickly do you usually get your figures sent in? I'm always a last minute one.

Seaxwyn

Has everyone got new avatars or have I just not noticed them before? Whatawit, yours is particularly spooky.

My year end is April 5 and i usually get them in quite quickly as I'm anxious to know the size of my bill. Another resolution for next year is to find an accountant who can be proactive in suggesting ways I could save money. I've used two accountants in the past but they both just used the figures I gave them. I'm sure I could be more tax-efficient, I pay more tax than anyone I know!

whatatwit

Good point that, a good accountant should be working for you, not just submitting what you provide.

It's my Jack Skellington, Nightmare Before Christmas avatar thought I'd get festive....Bah Humbug!

taxi73

Seaxwyn ..please don't be so hard on yourself.I hate to see you being so stressed.
I honestly don't think the problem you have financially lies completely with you.
In order to have a tax bill for such a huge amount then you must have earnt a lot!!!...don't get me wrong here....so that means although you think that you haven't been productive enough you must have been pretty productive.
I honestly think that your DH should be coming up with ideas to increase his income as it isn't entirely up to you.
Perhaps looking at projected figures for next year as trying to get a reduction on payment on account is a good idea.Even though the phone line is for people whos tax is due now..yours should count as it's due now as the last date to pay is 31st jan...no harm in talking to them.Then at least you know what you're up against.

hypno06

I agree with taxi - and I know that you will do too! You know that you earn a reasonable amount, and that your earnings potential is even greater, but of course a lot of the problem is organisation - organisation to get work done, organisation to put money away every week/month for the tax etc.

What worries me is that if you have a push for more work next year, you will earn even more, so find yourself with an even bigger tax worry towards the end of the year when your tax comes looming! I know you don't like re-jigging direct debits etc, and say that the money comes in at all times, and goes wherever it is needed at the time, which is fine, but I wonder whether this means that you are actually never really aware of the real situation etc because things are not in one place, if you see what I mean?

I would seriously consider including the organisation of bank accounts, money going out, etc as a big part of your big push for 2009. If you did this, and had a standing order bill for your tax every month, even if that was only for half your projected tax liability, you would find it harder to push to one side to face, stressfully, later in the year.

Excellent news on the tree and the "free christmas" stuff - I am sadly lacking in festive spirit so far, so will think about that sort of thing next week......maybe!

1274

Hi. I'm also SE. Haven't paid tax yet, but put away a third of all invoices for when the bill's due. Just a thought, if you reduce payments on account and then spend the money/pay it off debt, if they hit you with a bigger than expected bill in 2010 you might end up in the same position all over again. I know POA are a problem for cashflow, but at least they're locked away for tax, so you can't spend them. If you were employed, the tax amount would disappear automatically before you got your salary, so that's the approach I'm taking. I know it's hard though, if you have debt (mine is my mortgage) and also have thousands sitting in a bank account. Have you thought about "hiding" your tax savings from yourself e.g. put it into a locked saver, cut up the bank card etc?

PS Hope you don't mind the unsolicited advice. I follow your diary, because it's useful to hear about a fellow SE

Karmacat

Hi Seaxwyn

I think Hypno's point about organisation is the one for me - when I'm organised, my mind is clearer, and that *must* mean a better quality of work. And probably a more relaxed feeling to life. I know that things hanging over me really get me down, and then its not so easy to tackle/solve whatever's going on at the mo. Thats my experience, anyway.

taxi73

Morning Seaxwyn...the putting away of tax first and rejigging bank accounts is a good one and then you'll know what you have left for the debts/living.I empathise with you as I know how hard it is to put money away and keep on top of the other bills/debt.

Verbatim

Great news on the tree.

I've been ahead of myself on tax this year and have unexpectedly had a refund on last year. have to claim it back then pay almost exactly the same amount on account. Now why can't I offset the refund on the on acc' figure??

tyllwyd

Seaxwyn - I was thinking about you & your tax, and I wondered if you had looked into the possibility of becoming a limited company. The downside is that there are more rules & regulations to follow, but if your income is high I wonder if it might be more tax-efficient.

Just a thought - it might be worth talking to an accountant about it and finding out the pros & cons.