Struggling but determined... Mostly!

Wellyboots6

It comes to something when being warm is something done as a treat and to cheer you up!!

Wellyboots6

I filled in a self-assessment tax return recently with estimated figures as the paperwork I needed got lost when I moved house. The estimate came out that I was owed over £2000 in tax. I made sure I made it clear on the tax return that these were estimated figures. I also made a note on it that I have not been self-employed for about 3 years.

The other day I had a letter through saying that after next year I wont need to complete a self-assessment tax return, so they had obviously read the notes I put on it.

Checked my bank balance yesterday, and there was a payment from HMRC for the amount that the self-assessment suggested they owed me. Bit of a shock!

Now... I am not silly enough to think that the money is actually mine, as it was worked out with estimates and not actual figures.

I am worried, how will they demand the money back, and when?

If it won't be until next year, due to my debts is it worth me using this money to pay off my £900 overdraft as that is charging me interest and fees, and then to put the money to one side that would have gone on overdraft payments to repay the tax bill?

I didn't sleep last night worrying about it. The money would come in very useful even if it is only to borrow until next self-assessment is due and then pay it back. I half wish they had not paid it me though as I really don't know what to do with it!!

Herewego

Im a bit confused how can you fill out a self assesment if you are not self employed what figures did you put in ??
I would give them a call before doing anything first but i understand what you mean about using like a free loan try not to worry too much though my sister tells me worrying is a waste of energy :rotfl: Im guessing she doesnt have my debts LOL

Wellyboots6

I was confused too!

I just put in what I had earnt from being employed and what tax I had paid from being employed. I had to make lots of notes on it explaining it was pretty much guess work as I had lost all the paperwork in a house move, and explaining that I wasn't self employed and haven't been for years!

My dad (dads know best right?) says I shouldn't contact them, but keep hold of the money until next year (when I have to do another self-assessment!) when they will likely ask for it back. If that's the case then it would make sense to use it to clear the overdraft so I have no more interest to pay, and have a year to save the money back up again to pay it back.

Dilemmas!!

Herewego

Im not sure I would just be worrying they will claim it back and and wont have it, will you be able to save it up by next year.
I wouldnt be able to resist temptation to spend it all even if it was on debt, maybe you should post on the DFW board see what others think

Wellyboots6

I have posted on there and had a few different replies. Also posted on the Cutting Tax board. So many different replies, I am totally confused!

Skint_yet_Again

Hi katy721 I saw your post earlier, sorry I couldnt help you much but I see you have re-posted on cutting tax, and you seem to be getting some good advice. I would hold onto the money until you have the correct figures. To be honest I would rather owe my parents money than HMRC.
As for being alone in the evenings I know how you feel. Although I have son he is usually in his room, comes out for tea (teenagers lol) but a lot of the time I am sat here alone. I dont want to make out like billy no mates but friends have their own lives, OH, family etc. My family all live couple hundred miles away. Thankfully I am fairly self sufficient and dont mind my own company (even if I say so myself !) but I do know what you mean, I just get fed up looking at same 4 walls & having no money.:( Sorry didnt mean to moan but perhaps we can all chat on here and cheer one another along ...debt can be very isolating x

Wellyboots6

I agree with you in rather not owing HMRC anything, but the parents are advising me to clear my overdraft with it. Struggling with that idea, but also don't want to go against their advice as I owe them so much money I feel like until I have paid them it all back I have to do what they say.

OH suggested using it to move somewhere cheaper, closer to my friends. That way I would be saving money in the long term and would have a better chance of saving up to replace it when they ask for it back. I would also have a better social life as I would be closer to friends and town. I live in the sticks!

So many suggestions, and so many moral dilemmas! I never thought suddenly finding I had money would be so stressful!

Debt really is isolating. Its not even just the not being able to go on nights out. It also affects your confidence. I haven't had my hair done for so long and haven't bought any decent make-up for ages. I just feel I look terrible, so in a way I don't want to socialise anyway! Also, when I do go out I have to drive because public transport is non-existent here, therefore I can't join the others in drinking.

So may implications to debt!!

Herewego

It certainly does but we need to turn these dilemmas into positives like how can i get a cheap haircut, how to make cheap and filling meals but i do like a challenge and love hearing how others are coping and doing things oh and pinching their ideas

Skint_yet_Again

katy721 wrote: »

.....parents are advising me to clear my overdraft with it.

OH suggested using it to move somewhere cheaper...

I dont want you to think I'm lecturing you or take this the wrong way but the thing is you appear to have "guessed" how much you earned and how much tax you have paid, so at the moment its not really your money.
I know how tempting it is to spend it even to pay off debts but I really would wait until you know the actual figures. Letter from HMRC should take about 14 working days if you phone them, and you can then amend your tax return. Its not worth getting into debt with HMRC.