"Simply not solvent!

lucielle

Hi Seaxwyn. Timing could've been better for the tax letter. I hope you and yours have a great Christmas.
L

taxi73

Ouch to the Tax bill...DH got his yesterday and mine hasn't come yet.
Have a happy xmas and new year x

chevalier

I guess Seax (merry christmas that was by the way, I OH did take over so you could have a break by the way lol), that it is a case of if you don't ask you don't get, ref the tax deferral

BUT If you asked to pay it in say month installements and they said yes would THAT MOTIVATE YOU ENOUGH to pull your finger out and work to your fullest potential?

I hope that you can sort something out with them either way,

chev

Sea78

Hey hun - how's it going? You can do this!! You will do this, somehow, because you are a star and we are all rooting for you.

When will you be able to ask about the deferral? What things can you get done in Jan to help raise this money? Are there lots of jobs in the pipeline?

xxxxxxx

Seaxwyn

I'm going to ring the HMRC Business Payment Support Line tomorrow. And in preparation for that call, I have belatedly totted up my earnings for the period from April-December this year, and found I earned £9,000 less than in the equivalent period in 2007. So I can justifiably ask for a reduction in payments on account. That's a relief.

As for how I will find the money - and £4840 is the balancing payment for last year so I don't know if they will allow me more time to pay that - I don't know.

I have £1525 invoices currently outstanding, and about another £1300 worth of work in hand, which I should be able to do over the holiday. Then the promise of more work in Jan and Feb. However I ideally need to find a client or two who will give me substantial amounts of regular work, which is what I had in 2007. In 2008 I have worked for more clients, and written ten more invoices, yet earned 9k less.

Otherwise, I'm doing all I can think of. I'm doing a paper round for 3 months... I'm still doing really well on Amazon... and I have a larder groaning with Christmas leftovers from our family celebrations. Including lots of things like chocolates and biscuits, which I'll save for my DD's birthday party and for packed lunches throughout January.

But that kind of economising feels like rearranging deckchairs in the face of the big tax bill, so please keep your fingers crossed for a good outcome from the phone call tomrorow.

hypno06

Fingers are well and truly crossed for a very positive result tomorrow.

chevalier

well done on not panicking and doing some preparartion for the phone call. it means that you can quote to them a reason for an alteration, which is better than just grovelling for some help

and ok having a larder full may seem a bit futile, BUT if you only spend £200 this month on food instead of £600 because of that full larder that is still £400 you don't have to find for the tax bill - about5% .....
chev

Seaxwyn

The HMRC phone call went well. They were far more accommodating than I expected, and immediately asked me how I would like to pay, and immediately agreed to my proposal. Amazing!

So the upshot is that I will pay £1500 in January, then around £833 (exact sum to be confirmed) each month from January to June, then £1659.15 in July.

It's scary having yet another huge outgoing each month, but we'll have to manage it. And those £833 payments are only what I should have been saving for tax each month anyway, so it will be good to get used to it. I feel very relieved that I don't have to find 8k in January.

I have made sure that OH is aware of the sums involved. Whether that will make any difference I don't know.

hypno06

That is a huge relief - and you know that if you can save £800 a month for the first six months, you can continue to pay that standing order for the next six months too to avoid being in the same pickle next time round.

So.......well done for making that call and being pro-active :T

taxi73

That's great news....so if you pay that every month then put that amount in an account every month when you've finished paying then you should be about right to pay the following year.Bet you feel loads betternow.