A Diary of Reinventing Ourselves

Dolphin1

Forward_thinking wrote: »

For anyone reading this who uses YNAB, do you find that your wage needs to go in at the beginning of the month to make it work; otherwise you will be in the negative throughout the month until you get paid.

Hi FT

It would be ideal if you received the income that you need to cover your expenditure for the month at the beginning but that's not always possible especially to start with. Although if your expenditure is less than your income then things should start to improve over time and you should find that you are not relying on the income that you receive later in the month for that particular month before long.

Forward_thinking

Yep, get that and I can't wait for that to be the case. OH has been very receptive today, asked me to book an appointment to see the car tomorrow, and was actually quite interested when I told him I was trying to create savings for xmas, future car expenses, holiday etc. I have the company account details but he has asked me to wait until the children are in bed before opening them up as he is worried about them getting on there and causing chaos (let's hope it's that and not because he knows I may need to lie down afterwards!).

Definitely LBM has occurred - I can't believe the feeling of excitement and relief felt just now when I reluctantly went to order a birthday gift and it told me I had been given an £8 gift certificate. So the gift only cost me £6. Usually, such a thing would not cause any reaction at all and I would barely notice it!! Today I was so excited I had to ring and tell OH - no wonder he is fed up with me but I had to share my excitement. No hope for me now......

Tjh1412

Re company acc and income: is your income from the company drawn down as your OH's salary, as personal drawing or as a mixture of salary and dividends? Also whats the retained profit share? Are you paid the same way? Regarding dividends do be aware that dividends drawn monthly may be considered disguised salary by HMRC and as such be subject to tax and NICs in the normal way. On your directors loan account is there credit which could be used to help clear other debts or is there a debit which needs to be repaid? If theres a credit then assuming the company has the assets you can withdraw this tax-free at any time; hope this helps you're doing really well keep it up

Forward_thinking

Oh no, Tjh1412 - perhaps I won't look at the company accounts tonight. I have just got my head around YAB, all our financial scene, making my own website - thought I would be ambitious. But now I feel totally bamboozled. Hands up, I know very very little about the company scene which is bad as I receive a monthly payment. Pelirocco will be back to rap my knuckles again (in jest, Pelirocco )

buzzyzoe

Forward_thinking wrote: »

For anyone reading this who uses YNAB, do you find that your wage needs to go in at the beginning of the month to make it work; otherwise you will be in the negative throughout the month until you get paid.

There is an option on YNAB for income to be available either this month or next month. I get paid at the end of the month, so each months pay becomes available to use next month so you start the month with money. I don't know if it's helpful to you now but I would start on March 1st with February's money and work from there, then you've got a nice clean start to the month and know exactly how much you have to work with

Forward_thinking

Sounds a great idea buzzy but we are already into minus figures this month : (( so that's not going to work for us!!

Appreciate you thinking of me and posting though.

Tjh1412

Well if you want any help with that at all just let me know, happy to help anytime so if theres anything you'd like explaining just ask

Forward_thinking

I think I am going to HUGELY appreciate that Tjh1412. It's going to be a steep learning curve!!

pelirocco

Forward_thinking wrote: »

Oh no, Tjh1412 - perhaps I won't look at the company accounts tonight. I have just got my head around YAB, all our financial scene, making my own website - thought I would be ambitious. But now I feel totally bamboozled. Hands up, I know very very little about the company scene which is bad as I receive a monthly payment. Pelirocco will be back to rap my knuckles again (in jest, Pelirocco )

Its important you know where the company account and bank account stands . If he owes money on a directors loan , where has this extra money come from , bearing in mind he is just a one man band . He has either got loans in the company name or he has not been paying company bills . You have said that you both will have a tax bill of £20k each .............if you arent a company director then this isnt possible . If he is taking dividends ( which you can do monthly if you have accounts to prove you have made enough profit to justify it ) then taking £7000 per month isnt going to generate tax of £20k ( nor £40k come to that )

Something just isnt adding up

getmore4less

You can be a shareholder without being a director.
Dividends are paid to shareholders.