I have no idea where to go from here.

Emjay85

I want to post my SOA, if anyone has any advice or help I'm open to it....I don't see a way out or anywhere else to turn.

Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 1400
Benefits................................ 560
Other income............................ 80
Total monthly income.................... 2040

Monthly Expense Details
Mortgage................................ 562
Council tax............................. 130
Electricity............................. 50
Gas..................................... 53
Water rates............................. 38.72
Mobile phone............................ 25
Internet Services....................... 41
Groceries etc. ......................... 120
Petrol/diesel........................... 70
Road tax................................ 14
Car Insurance........................... 35
Car maintenance (including MOT)......... 11
Childcare/nursery....................... 500
Contents insurance...................... 45
Life assurance ......................... 33
Bank Overdraft Charges.................. 12 (overdraft amount £250)
Total monthly expenses.................. 1739.72

Secured & HP Debts
Mortgage...................... 562

Unsecured Debts
Virgin Card....................70 @0%interest (total debt £6,352)
Debt Recovery...............120
Halifax Mastercard.........50 @0%interest (total debt £1,320)

Monthly Budget Summary
Total monthly income.................... 2,040
Expenses (including HP & secured debts). 1,739.72
Available for debt repayments........... 300.28
Monthly UNsecured debt repayments....... 240


Amount left after debt repayments....... 60.2


On top of this, I now have a debt from HMRC of £12,000 which is due to start repayments next month. through our UC.

This is all of our money, I don't know how we will live once this £12,000 repayment starts. I see nowhere to go from here.

ADDITIONAL - ***Why my income is 0*** I started my own business a few months ago and work 2 days a week. Business is successful and averages about £600ppm BUT I am also investing most of that back into the business as I am now getting more customers and need higher stock purchases. This will of course balance out in time, but as it stands I make a loss of a few pounds each month.

kazwookie

Hi

Why is there £500 for nursery, when only one partner is working?

Can the other person do the child care and save the £500?

Good luck

Emjay85

Hi, Ive updated the post to include my work circumstances. £450 of our benefit is entitlement for childcare. If my daughter wasn't in childcare we would save £50 not £500. I wish it were that simple!

Grampus8

Your contents insurance is astronomical, even if it includes buildings insurance it's still way too high. You can probably chop off at lease £25 from that.

Emjay85

Grampus8 wrote: »

Your contents insurance is astronomical, even if it includes buildings insurance it's still way too high. You can probably chop off at lease £25 from that.

Thank you for letting me know this! I have no clue where to start as I just went with the banks recommendation when we took the mortgage. Is it just a case of going with someone else and cancelling the dd with the bank?

MallyGirl

Emjay85 wrote: »

Thank you for letting me know this! I have no clue where to start as I just went with the banks recommendation when we took the mortgage. Is it just a case of going with someone else and cancelling the dd with the bank?

do a search on moneysupermarket or one of those comparison sites. It does seem high

EssexHebridean

Comments in red, as usual, but the first thing I'm going to say is that I'm not convinced that this is the right time for you to be trying to make a go of being self-employed. It's tough going at the best of times, even when you start from a zero-debt basis and have a partner earning sufficient to pay basic living expenses, it's still a tough thing to do. In your circumstances I'm simply not sure it's sustainable right now.

Emjay85 wrote: »

I want to post my SOA, if anyone has any advice or help I'm open to it....I don't see a way out or anywhere else to turn.

Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 0 You are making sure to set aside the right percentage of everything you are making to ensure that you can pay your tax & NI liabilities in January, aren't you?
Partners monthly income after tax....... 1400
Benefits................................ 560
Other income............................ 80
Total monthly income.................... 2040

Monthly Expense Details
Mortgage................................ 562
Council tax............................. 130 If you pay this over 10 months, switch it to over 12.
Electricity............................. 50 Yo can probably make a small saving between here and the gas
Gas..................................... 53
Water rates............................. 38.72
Mobile phone............................ 25
Internet Services....................... 41 This is high
Groceries etc. ......................... 120
Petrol/diesel........................... 70
Road tax................................ 14
Car Insurance........................... 35
Car maintenance (including MOT)......... 11 This is proibably not enough - think servicing, MoT Test, tyres, consumables...
Childcare/nursery....................... 500
Contents insurance...................... 45 as someone else has said - this is way high, especially if it's not a combined policy with Buildings as well.
Life assurance ......................... 33
Bank Overdraft Charges.................. 12
Total monthly expenses.................. 1739.72

Secured & HP Debts
Mortgage...................... 562

Unsecured Debts
Virgin Card....................70 @0%interest (total debt £6,352)
Debt Recovery...............120
Halifax Mastercard.........50 @0%interest (total debt £1,320)

Monthly Budget Summary
Total monthly income.................... 2,040
Expenses (including HP & secured debts). 1,739.72
Available for debt repayments........... 300.28
Monthly UNsecured debt repayments....... 240


Amount left after debt repayments....... 60.2 Do you definitely have this amount left over each month? I'm guessing not because ther is a lot you're not budgeting for in the SOA - clothing, presents for christmas and birthdays, haircuts, optical/dental check ups, entertainment - I bet there's more too.


On top of this, I now have a debt from HMRC of £12,000 which is due to start repayments next month. I've tried calling UC but they cannot tell me how much the repayments will be. Have they definitely said they will agree a repayment plan or is this actually a demand for the full amount at this stage?

This is all of our money, I don't know how we will live once this £12,000 repayment starts. I see nowhere to go from here.

ADDITIONAL - ***Why my income is 0*** I started my own business a few months ago and work 2 days a week. Business is successful and averages about £600ppm BUT I am also investing most of that back into the business as I am now getting more customers and need higher stock purchases. This will of course balance out in time, but as it stands I make a loss of a few pounds each month.

The problem is, you don't HAVE a few pounds each month, right now. You say the business is successful and averages that amount per month - but how much of that is pure profit by the time standard re-stock cost is taken into account, never mind the building you're trying to do at the moment? Also remember tax, NI etc too needs to be taken off that to give you even an idea of your real "take home" pay. I'm aware this sounds harsh, but at this stage I genuinely think you may do best to put the business plan on the back burner for a few years, go back to paid employment, get your debts cleared and then try again when your little one is entitled to free childcare or is at school full time.

EssexHebridean

Emjay85 wrote: »

Thank you for letting me know this! I have no clue where to start as I just went with the banks recommendation when we took the mortgage. Is it just a case of going with someone else and cancelling the dd with the bank?

In which case there is also a good chance that this is just buildings insurance and not contents also - you need to check that immediately and get contents cover in place urgently if this is the case!

If you've not been doing the comparison site thing on your home insurance, then have you been doing it on your car insurance? If not you may be overpaying there too.

MallyGirl

you have listed overdraft charges but not how much the overdraft is.

Apart from that your partner just doesn't earn enough to support you both whilst you start up a business - one of you needs to look for a second job to see you through till your business is making money

Emjay85

EssexHebridean wrote: »

Comments in red, as usual, but the first thing I'm going to say is that I'm not convinced that this is the right time for you to be trying to make a go of being self-employed. It's tough going at the best of times, even when you start from a zero-debt basis and have a partner earning sufficient to pay basic living expenses, it's still a tough thing to do. In your circumstances I'm simply not sure it's sustainable right now.



The problem is, you don't HAVE a few pounds each month, right now. You say the business is successful and averages that amount per month - but how much of that is pure profit by the time standard re-stock cost is taken into account, never mind the building you're trying to do at the moment? Also remember tax, NI etc too needs to be taken off that to give you even an idea of your real "take home" pay. I'm aware this sounds harsh, but at this stage I genuinely think you may do best to put the business plan on the back burner for a few years, go back to paid employment, get your debts cleared and then try again when your little one is entitled to free childcare or is at school full time.

Hi there, its not harsh at all! I'm also looking for full time work and ideally would like a full time job. I was made redundant which is why Im trying to do this until I can find something.

EssexHebridean

Ah that's good then - I did something similar with going SE a few years ago but to an extent it was less of an issue as we could just meet our outgoings from the OH's income, thankfully - I ran three income streams for a few years until one picked up to a level that I could offload one of the others, the third I kept running as it was an occasional thing anyway. Definitely apply for whatever you can in terms of paid employment - maybe something part-time would allow you time to work on your business as well without losing quality of life completely?