Five Year Fix, Five Year Plan

Merlin's_Beard

In terms of long term savings, now my emergency fund is at £10,000 I've upped my SIPP contributions to £400 (net) a month from £300.

That takes me back up to 17.4% gross salary when you add up workplace employer, workplace me, and SIPP contributions.

I normally claim back professional subscriptions, uniform washing and mileage on a "claim tax relief for job expenses" online form. If I'm adding in claiming higher tax back for pensions (workplace and SIPP - no sal sac here!) does anyone know the most efficient way to do this? Am I at the point where I need to do a self assessment form and roll everything into one, or is there a simpler way?

ChasingSunshine

I have done the reclaim higher rate tax on pension contritions. You don't need to do self assessment unless you need to for some other reason. You can't do it online but have to call them. I had to write a letter as it was large one off payment but think if it's only a small amount they can do it by phone. I copied a template from one of the online brokers. Took ages to actually get that refund compared to all my other expenses through the online form which you can still do for job expenses etc. Have a vague idea they might offer to adjust your tax code if it's going to be a regular contribution in future years but as didn't apply in my case so could have that completely wrong. 

badmemory

Doesn't the SIPP automatically add the tax back on, unless you pay 40% tax, in which case file SA unless it is a one off.

FlacosFloozie

I had to phone HMRC and they changed my tax code. Was also claiming a lot of cpd expenses/prof fees back at same time. They did say they'd probably put me on self assessment if I made further changes.

Merlin's_Beard

Thanks all, will try just phoning this year and see what they say.

October roundup/November plan:

£290 total in overpayments. I've got it in my head that on top of the £200-250 that I want to regularly overpay, I want to ad hoc 'pay back' the £999 product fee. So £90/£999 paid off that.

I've put £250 towards OPing on Novembers budget, but with a view to putting it through a regular saver for better interest instead of directly onto the mortgage. I'm going to hold onto it until mid month to see if anything easily accessible beats the 4.5% BoS saver.

I've also increased my SIPP contributions from £300 to £400 for November, once I add in workplace pension and basic tax relief that takes me back to 17.4% contributions. Will give HMRC a call about the tax in April.

Emergency fund: £10,615/£12,000. After a few months of bills I think £12k is a reasonable amount to cover 6 months of expenses with wriggle room. I'll aim to have this by the end of the year.

Extra earnings:

Bank interest: £9.38
Cashback: £85.36 - most of this is the govt energy rebate.
Surveys: £86.78 - this is mostly prolific with a £10 panelbase.

Merlin's_Beard

That's the good, now the rest:

Council tax will be £173 for the rest of the year, to make up for the month I didn't pay. Should hopefully drop to around £155-160 with the new council tax year but I'm going to have to pay in February with only March off.

I'm keeping the energy bill at £250 for this month to get the £10 123 cashback with Santander. SP still think my DD should be £200, which is a lot more than I was hoping (I was paying £70 at my previous house!)

My food spends have been appalling this month. And that's all on me. I budget £120 and while it's definitely been easier to go over that this year, I've hit £236 this month through bad planning and illness. Off to batch cook some emergency freezer meals this afternoon!

Merlin's_Beard

Long term wise:

Total net worth did a climb towards zero for the first time since buying the house! That's pretty exciting. Such a massive difference when your mortgage goes towards you rather than rent going to someone else. Total net worth now £-205,500.

Pensions: held steady in October (ie what I put in offset the drop).

Quiet day today while I wait in for workmen to finish off bits picked up on my snagging survey. Hopefully (please) this might be the last few bits that need doing, which will free up my weekday off to do other things (still haven't booked my flu jab and the supermarket aren't doing walk in appts this year). I also need to borrow some gardening tools and dig up the weeds in my front garden if I can find a gap where it's not raining and I'm not waiting in for anyone.

LadyWithAPlan

Merlin's_Beard said:

My food spends have been appalling this month. And that's all on me. I budget £120 and while it's definitely been easier to go over that this year, I've hit £236 this month through bad planning and illness. Off to batch cook some emergency freezer meals this afternoon!

I think we have to be kind to ourselves when we are working so hard and if you have been ill. Sounds like you are doing well on your plan.

Merlin's_Beard

LadyWithAPlan said:

Merlin's_Beard said:

My food spends have been appalling this month. And that's all on me. I budget £120 and while it's definitely been easier to go over that this year, I've hit £236 this month through bad planning and illness. Off to batch cook some emergency freezer meals this afternoon!

I think we have to be kind to ourselves when we are working so hard and if you have been ill. Sounds like you are doing well on your plan.

Thank you.

savingholmes

Merlin's_Beard said:

Long term wise:

Total net worth did a climb towards zero for the first time since buying the house! That's pretty exciting. Such a massive difference when your mortgage goes towards you rather than rent going to someone else. Total net worth now £-205,500.

Pensions: held steady in October (ie what I put in offset the drop).

I wouldn't calculate your net worth like that. The house is presumably worth what you paid for it - so your net worth is currently the value of your deposit, plus EF and what you own free and clear e.g. a car. I would calculate net worth as what you'd have after everything was liquidated/sold. Therefore your pensions also potentially feed into it. I would minus any credit card spend or non house loans off net worth but not the mortgage - unless with the current turmoil you end up in negative equity.

Good luck with resolving your to do list.