Small Steps Out Of Massive Debt!

astrocytic_kitten

Oh how brilliant you’ve completed! And I think overwhelm is a totally normal feeling at this stage with a project. Are you moving in now, or waiting till some of the essential works are done? 

katsu

If you pay your pension through salary deduction then your payroll can take account of the higher rate relief - are you sure they don't? 

You would be having your contribution made by salary exchange or salary sacrifice (2 name for the same thing). 

I've never worked for a company where people didn't have their pension done this way. It happens for sure, but I think its less common so suggest checking in at work. 

And yes the other poster is right. If you have to do a tax return, use the opportunity to claim back any extra tax relief from taking your mileage up to the 45p if you've travelled for work and your work pay less, work from home relief, professional subscriptions and any gift aid. 

As a higher rate tax payer you'll be eligible to claim back 20p in every £1 that you've paid in gift aid. You can claim it and use it as you wish - more donations or back into your pocket. It's super easy if you track all your gift aid donations during the year as you just need the total. 

Congrats on the new house. We got a house that needed a lot doing and focused on paying for the mortgage first. We got our 30yr done in about 16. It's amazing how fast it can go if you have a bit of luck and put extra cash into the house. However with lockdown I did wish we'd done it up more as I have some rooms that aren't good for work calls 😅 and it would have been nicer to have a better place. 

All the best of luck! 

GeorgianaCavendish

WinterWarrior said:

Congratulations on your lovely new house 🏡. I wish you lots and lots of good luck and happiness in it xx 

Thank you so much @WinterWarrior xx

GeorgianaCavendish

vampirotoothus said:

Hi you will probably need to complete a self assessment to get your pension contribution tax reclaimed, but you can backdate this as well. Also if you are doing one, don't forget to claim for any professional subscriptions if you pay. Good luck on the houses renovations V x

Thank you @vampirotoothus - good to know I can backdate, and backdate my professional subs too! (I guess they don't count union subs though? ) Thank you for the good luck wishes with the renovations - I definitely need them!  x

GeorgianaCavendish

astrocytic_kitten said:

Oh how brilliant you’ve completed! And I think overwhelm is a totally normal feeling at this stage with a project. Are you moving in now, or waiting till some of the essential works are done? 

We're going to get the big bits of work done before we move in (roof, plumbing and electrics) - it will hopefully make things a lot easier and quicker if we don't have to keep moving furniture to pull up floorboards or run cables through walls etc. There will be some bits that we can crack on with while those big projects happen (inside and outside!) and other things that can be done once we move in. It is exciting but a little bit terrifying too!  

GeorgianaCavendish

katsu said:

If you pay your pension through salary deduction then your payroll can take account of the higher rate relief - are you sure they don't? 

You would be having your contribution made by salary exchange or salary sacrifice (2 name for the same thing). 

I've never worked for a company where people didn't have their pension done this way. It happens for sure, but I think its less common so suggest checking in at work. 

And yes the other poster is right. If you have to do a tax return, use the opportunity to claim back any extra tax relief from taking your mileage up to the 45p if you've travelled for work and your work pay less, work from home relief, professional subscriptions and any gift aid. 

As a higher rate tax payer you'll be eligible to claim back 20p in every £1 that you've paid in gift aid. You can claim it and use it as you wish - more donations or back into your pocket. It's super easy if you track all your gift aid donations during the year as you just need the total. 

Congrats on the new house. We got a house that needed a lot doing and focused on paying for the mortgage first. We got our 30yr done in about 16. It's amazing how fast it can go if you have a bit of luck and put extra cash into the house. However with lockdown I did wish we'd done it up more as I have some rooms that aren't good for work calls 😅 and it would have been nicer to have a better place. 

All the best of luck! 

Thank you @katsu - I'll check with payroll first thing on Tuesday so they can confirm if I'm getting the full tax relief. I will also double check on giftaid, I've got a couple of charity direct debits set up and should have the receipts for my one-off donations still, so that will be easy to calculate. Nice to give that extra to charity. 

The house needs a bit more work done than we first thought to make it safe but the decorative aspects can definitely wait until we've got more cash or can chip away at them cheaply. It's great to hear how quickly you got your mortgage paid off! I'm hoping we can shave off 10 years in the first 5 as a start  

EssexHebridean

How exciting that you’ve completed - congratulations! And yes, totally understandable that it all feels a bit “big” at the moment - there’s a good reason for that too, it IS all quite big, but you have it all under control and money being saved etc, AND things will go far more smoothly as you’re getting the big stuff done before you move in! 

GeorgianaCavendish

EssexHebridean said:

How exciting that you’ve completed - congratulations! And yes, totally understandable that it all feels a bit “big” at the moment - there’s a good reason for that too, it IS all quite big, but you have it all under control and money being saved etc, AND things will go far more smoothly as you’re getting the big stuff done before you move in! 

Thank you @EssexHebridean - its good to take a moment to acknowledge that it is a "big" thing and can feel a bit overwhelming at times! 

GeorgianaCavendish

£500 win on PBs today! It is going to stay reinvested in the EF for now, but may take it out for building works later. Can't believe it  

Kakiste

Wow! That's so much more than any savings account interest rate.