The Mental Debt Struggle...

beanielou

Enjoy your writing 😊

Keedie

My Barclaycard direct debit came out so £250 there.

I checked my HMRC app this morning when I woke up and they've agreed the £100 on account for 31 January 2024 and £100 on account by 31 July 2024. So I'm just waiting on confirmation of the money transfer from Barclaycard and the money I'm owed and then I can formulate a plan. So I've got £1,944.80 to pay by tomorrow as I don't want to leave it until Wednesday. But I might be able to use my accrued money for February 2024's budget to pay HMRC tonight and then put it back when the Barclaycard and money I'm owed money comes through. But I'll figure that out this evening once I've got a clearer idea of things. The main thing is that the payment on account is much lower. Now I feel like I can breathe more. There's light at the end of the tunnel of this mess that is my own making 😬.

I'm going to do some more tasks for my digital marketing as I still behind on all that. Then when I go to my creative writing class I can enjoy the time out of the house, as I won't have all that homework hanging over my head.

Cherryfudge

I'd not come across Meetup, so thanks for that @Keedie. There's nothing in my town (that's the price we pay for being far from the madding crowd ) but there are several online writing groups so when I have a few of my work-related courses out of the way, I might go back and see what I'd like to try. I'll bookmark it.

I hope HMRC gets back to you soon so you can address where you are and make plans.

LittleMissDetermined

Good news on the lower payment on account, I'm confident that whichever way you move your plans you will make it work. 
LMD x

Keedie

Meetup has some great online courses @Cherryfudge so you’ll definitely find something that works for you. I’m doing an online course with Curtis Brown Creative that is focussing on Plot & Story (my weakness areas in controlling a narrative). I brought it as a present to myself during their Black Friday sale. I’m (surprise surprise) behind on that and it only started on Thursday last week. It’s online, so I need to knuckle down today and catch up on the tutorial videos and tasks. And then do peer feedback tomorrow. 

I’m very relieved with the reduced payment on account @LittleMissDetermined as it puts my shaky financial position in a stronger place. So once it all gets sorted with the money transfer and money owed, I’ll be able to see where I stand with my overall debt. As the payment on account is reduced, I don’t need the full £2,000, especially if the £630 comes on time. I’m which case, my poor financial planning may end up being a blessing in disguise. As it will mean that I am able to clear the remaining debt to my mum and just have one creditor to focus on. Who knows. I might escape catastrophe after all…

badmemory

I don't want to upset the applecart but be very careful with those payments on account.  Look at my username & check what I say as I have it for a reason.  If you have reduced the payment on account & it turns out you have reduced it by too much I'm sure they charge you interest.

Keedie

What?!?! I need to look into this payment on account a bit more today. I didn’t realise there was a penalty for underpaying 🤦🏾‍♀️. Thanks @badmemory for the advice. I’ll look into it and work out where I stand. 

badmemory

There is only a penalty if you reduce the amount too low, not if they reduce it.  It will depend on how they have recorded it.  I doubt you will have an issue unless the difference is significant.  So if you have said tax due £200 when it was already obviously going to be £2000 then whoops.

Keedie

Yeah I just made an awful mess of everything @badmemory, and it's a lesson that's harsh but has been learnt.

I spoke to HMRC this morning and they advised me to set my payment on account at a minimum of £500 so I've changed this on my online account to pay £750, but I've no clue when it will update. Hopefully by tomorrow. I've just given up on the whole thing and paid the higher payment on account that I've set, plus the actual tax itself.

I've got the receipt for the requested change first thing this morning and the payment for the combined amount has come out of my business account. I'll deal with it next week and see what the actual amount is and whether or not paying the increased fixed payment on account before it was processed has worked or not. I'm so exhausted I can't function properly. The whole thing has stressed me out and it's self inflicted so there's no point in me even getting upset. I've just got a pounding headache and I feel annoyed with myself.

badmemory

Please don't beat yourself up over this.  HMRC are notoriously difficult to deal with & their Ts & Cs even worse.  Frankly I am surprised you even managed to contact them.  If I were you I would just file as soon as you can in the next tax year & see what that comes out to.