A Diary of Reinventing Ourselves

Forward_thinking

Evening!

Well, there was I ready to thank each and every one of you and I see there is just so much wonderful information for me to peruse. May I just give one huge, sincere thanks to everyone who has posted since my last. I really do absorb everything I read and always more than once.

I have just had a reaction from OH. I just casually mentioned that did he realise his cc is now charging 29.9% interest. He almost jumped out of his chair!! Result!!! He had thought it was 18% and said he is on the case tomorrow or we will be paying 10k in interest in the next year. At last! He is still adamant that getting more credit is not the answer and he has other plans. He never bothers checking his account as he just lets them take the minimum - that's why it has increased without him knowing.

Mattygroves2 - thank you for posting. Your words echo exactly what my husband has said. I mentioned it might be best to start up an ISA to save to pay back the company loan but he claims there is enough profit to pay back the loan using dividends. He claims it is the tax we need to get back and could be as much as 20k each. Apparently everything is squeaky clean but we need to get it back quickly before being asked. I am really impatient to get the figures but he claims it is a couple of days work to get the whole year's accounts together.

I was really looking forward to doing some budget tracking tonight but one of the children is poorly and I haven't had a chance. Going to have a really quick look now and then go to bed. Let's hope OH doesn't assimilate the 29.9% into his sub-consciousness overnight

katiepoppycat

Hi FT,

I'm another one using a bog standard spreadsheet and different 'pots', both in different accounts and tracked in the same account. I don't track to the nth degree the daily spends etc. I'd be happy to send you copies of my spreadsheets - There's nothing in them that can identify me and it might help you to see how someone else's work. When I change it I start a new sheet so there's a few years of data so you can see how things have changed. Just drop me a pm and we can sort out the details if you want.

pelirocco

thegreenone wrote: »

Please don't ask DH to pay himself and then put any spare back to the company. He will have paid tax on it! He needs to gradually reduce his salary to save for the repayments on the director's loan. I'm not quite sure what sort of loan he has taken(?) as my DH has one but doesn't have to repay it until he winds up the company. Is DH paid weekly or monthly?

I doubt he is getting paid through PAYE , except for a minimum amount , he should be paying his self via dividends and his tax calculated at end of year . What he takes out will come out via directors loan account , what he pays in will reduce the balance of the loan account

pelirocco

Forward_thinking wrote: »

Evening!

Well, there was I ready to thank each and every one of you and I see there is just so much wonderful information for me to peruse. May I just give one huge, sincere thanks to everyone who has posted since my last. I really do absorb everything I read and always more than once.

I have just had a reaction from OH. I just casually mentioned that did he realise his cc is now charging 29.9% interest. He almost jumped out of his chair!! Result!!! He had thought it was 18% and said he is on the case tomorrow or we will be paying 10k in interest in the next year. At last! He is still adamant that getting more credit is not the answer and he has other plans. He never bothers checking his account as he just lets them take the minimum - that's why it has increased without him knowing.

Mattygroves2 - thank you for posting. Your words echo exactly what my husband has said. I mentioned it might be best to start up an ISA to save to pay back the company loan but he claims there is enough profit to pay back the loan using dividends. He claims it is the tax we need to get back and could be as much as 20k each. Apparently everything is squeaky clean but we need to get it back quickly before being asked. I am really impatient to get the figures but he claims it is a couple of days work to get the whole year's accounts together.

I was really looking forward to doing some budget tracking tonight but one of the children is poorly and I haven't had a chance. Going to have a really quick look now and then go to bed. Let's hope OH doesn't assimilate the 29.9% into his sub-consciousness overnight

Minimum payments to credit cards do not result in balance increasing


Why on earth are you expecting £20 k tax back each

getmore4less

Ask him what his plan is for this CC interest, I don't think he has one yet and is desperately trying to work one out that does not need ballance tranfers because you suggested it.
You should have been surprised even shocked that he thought 18% was OK when there are so many 0% deals out there.
Perhaps he does not yet understand the concept that moving credit is not the same as getting more.


If you have £20k tax bill due each thats a lot of money that has been pulled out(does it go back to the days when there was a much higher daily rate).
You are probably going have closer to £6kpm on £120k revenues to be targeting that tax bill.
If he does get that rate rise, then all the rise should probably go to sorting out the tax bill first.
If on a daily rate how many weeks a year is he working? with 6 weeks holidays £120k is a rate around £520pd seems low from £1200pd

On SOA/Budgets, there are somethings that are knowns others that are bit wooly the trick is to aim low for income if it will vary a bit, on expenses you aim high but remember these amounts are not target to try and hit they are the limits where you will balance the budget go over and things are going wrong and need adjusting.
eg the food/household is £700pm probably should be aiming to hit £600-£650 on a regular basis, and that leaves enough to have the inlaws round for a slapup meal when they deliver the car, a bigger shop at Xmas, same with the kids activities leave some wiggle room so if something comes up you have te cahs to take them out.
if as time goes on you are not spending it throw it at the debts and maybe reduce the budgeted amount a bit. go under a lot and the debt is cleared then the discretionary spends can be reviewed and some savings goals set,

IT is a lot easier to fiddle with the budget when it has a bit of extra in it because you just throw at the debts if regularly over spending to plan it means finding places to cut back.

getmore4less

pelirocco wrote: »

Why on earth are you expecting £20 k tax back each

I think that is pay back £20k each to the taxman

Forward_thinking

Morning!!! That was a cold start and certainly woke everyone up!!

Thanks for the posts. Getmore - his plan involves asking a very close friend to lend him the money to pay off the cards for a few days. The cards he has offer several 0% interest deals (although I suspect Martin Lewis is referring to these when he says they are ending so we need to hurry!). Once the cards have been paid he will then transfer onto the 0% deal. That's the plan anyway. And yes, of course 18% interest is not acceptable although no, I wasn't shocked at his lack of concern about that rate. Doesn't surprise me anymore.

Re the company accounts I have a lot of learning to do. OH has said the money we owe will be on the director's loan we had because we won't be able to pay it back in the nine months. But that doesn't make sense because he said we had enough dividends to pay it back - hands up, I can't answer these questions yet.

No, pelirocco - not expecting 40k back although that would be a rather nice problem to have.

Right, off to get OH the cc details of his account nos he has requested.....

getmore4less

Forward_thinking wrote: »

Getmore - his plan involves asking a very close friend to lend him the money to pay off the cards for a few days. The cards he has offer several 0% interest deals (although I suspect Martin Lewis is referring to these when he says they are ending so we need to hurry!). Once the cards have been paid he will then transfer onto the 0% deal. That's the plan anyway.

Thats not going to take a few days, unless very lucky.

Then there is the problem that if he gets the wrong deal he won't be able to put the debts back on the cards to pay back this friend.

Ask him if he know the difference between a Balance transfer and a money transfer and super balance transfer.

I think you have virgin
Virgin do money transfers but on most cards the fee is 4% balance transfer are lower
http://uk.virginmoney.com/virgin/credit-cards/balance-transfer-cards/

and Barclaycard cannot see any money transfer options
http://www.barclaycard.co.uk/personal/credit-cards#/

questionss

getmore4less wrote: »

If on a daily rate how many weeks a year is he working? with 6 weeks holidays £120k is a rate under £350pd seems low from £1200pd

Surely £120k per annum is £520 a day over 46weeks - still a big drop down from £1200 either way though

Forward_thinking

Oh takes 3 weeks max holiday.