In a mess and feel desperate. Looking for advice and help please.

sourcrates

Any income from a second job is taxed at 20%, plus the more you earn, the less tax credits you will get, you may find its not worth the bother.

TheAble

ElleWoods said:

Sistergold said:

Is there any chance of increasing income? Odd cleaning jobs for cash? 🤷‍♀️

Thanks @Sistergold, I'm unable to increase my hours at my current job so I'm looking into getting a second job, however I'd never do anything cash in hand and not declare it, as I have a terrible guilt complex! Plus I'd be terrified that the benefits people would find out (I'm on tax credits), so I'd rather look for something above board. 

You are allowed to earn £1000/year from side hustles without having to pay tax on it. Not sure if there are any benefits implications from this however.

Just in general terms, explore and don't rule anything out. See what extra income you can make without it affecting your benefits. If it will affect your benefits, find out how because it may still be worth your while. When you're in a tight spot you have to do this stuff.

Sistergold

ElleWoods said:

Sistergold said:

Is there any chance of increasing income? Odd cleaning jobs for cash? 🤷‍♀️

Thanks @Sistergold, I'm unable to increase my hours at my current job so I'm looking into getting a second job, however I'd never do anything cash in hand and not declare it, as I have a terrible guilt complex! Plus I'd be terrified that the benefits people would find out (I'm on tax credits), so I'd rather look for something above board. 

Cash jobs are good in that they are flexible. Yes you declare it the taxman takes his share and you keep yours. Either way you will be better off as that money can not just come from nowhere. If you can get a second job formally that’s also fine. The money you mentioned you are earning did not seem like if you eaned a bit more cash it was going to rock your boat. If you can earn a lot and lose the benefits is it so bad? I find it confusing when one refuses to earn so as to continue getting a particular benefit. I know that there is a way you can end up worse off if you earn above the limit but don’t don’t work enough. Once you forget about benefits the sky is the limit or is it not? Otherwise maybe you are stuck in this situation? Only way up is earn more? The benefit system is getting squeezed I hear. Seems many are worse off? Some say getting less on universal credit? 

EssexHebridean

The problem with the argument about getting a second job but losing benefits is that it can end up with a situation where firstly, costs can actually increase - for example if additional childcare is required as a result of the increased working hours. Secondly, someone can end up losing the majority of their personal down-time in order to simply break even on finances - they earn £100 working 8 hours per week, but lose £90 of benefits - giving them a ludicrously low effective hourly rate for that second job, and the obvious downside of a poorer work/life balance. 

kimwp

sourcrates said:

Any income from a second job is taxed at 20%, plus the more you earn, the less tax credits you will get, you may find its not worth the bother.

The 20% tax rate applies if your salary from your first job is above your personal allowance and your total is below the 40% tax threshold. You will be taxed as though earning the total amount from one job. Not sure how it works to mix in self employment higher than the £1000 allowance or how ni works with two jobs though. Add in savings income, dividend income if those apply and it becomes even more complicated!

Sistergold

 EssexHebridean said:

The problem with the argument about getting a second job but losing benefits is that it can end up with a situation where firstly, costs can actually increase - for example if additional childcare is required as a result of the increased working hours. Secondly, someone can end up losing the majority of their personal down-time in order to simply break even on finances - they earn £100 working 8 hours per week, but lose £90 of benefits - giving them a ludicrously low effective hourly rate for that second job, and the obvious downside of a poorer work/life balance. 

OP has one child going into adulthood. Most people not on benefits don’t have this work downtime balance as one has to work for as much as they need for the expenses they have. The OP has a lot of debt, by the sounds of it she is worried about her son leaving college as benefits will reduce. The solution sounds like work/more money, as benefits are not based on the lifestyle you want to live. Or live below that benefit allowance no matter what. If this debt is say written off the money is the benefit going to be enough? 🤷‍♀️

EssexHebridean

@sistergold - the point I  made about benefits was a general one, not specific in its entirety to the OP's individual circumstances. however, the work/life balance point is an important one - it is something that everyone should be aiming for a balance that suits them and their mental and physical needs in. 

Sistergold

EssexHebridean said:

@sistergold - the point I  made about benefits was a general one, not specific in its entirety to the OP's individual circumstances. however, the work/life balance point is an important one - it is something that everyone should be aiming for a balance that suits them and their mental and physical needs in. 

True, adulting, all stress, an adult will have to do what an adult has to do. It’s all stress I guess you choose which stress is acceptable time or money? Good luck to the OP. 

Andyjflet

Sounds like your doing a great job Elle, I can understand though how overwhelming it must be, but for me the things that stand out that I love are:

1. You have owned the problem and not made excuses, refreshing attitude and this is why I know you'll be OK
2. You have some sense of reality and although your debts don't seem that big you haven't increased them.

Like others have said I would start to look at how you can increase the size of shovel you have to dig you out of this hole. More money will ensure you have some breathing space.

Can you get further up the ladder, new job, more hours etc? 

Then make sure your budget is tight as a ducks youknow what!!  

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