Can I afford to buy?

[heyya99]

I'm curious if the contracting community go above the tax efficient salary + dividends? Each of my 4 years contracting, I've never, although tight, went beyond the tax efficient dividend per year. I have a contracting colleague who goes well over every year because he doesn't feel the benefit of contracting if one stays within confined limits. But I'm wary of paying so much tax - when in reality a tax efficient net figure is still a pretty handsome gross permie salary.

[northernladuk]

I work to live. The tax efficient level is nice to work to if I don't need it but I don't bat an eyelid about spending on something I'd like that takes me over. Is a nice to have but it most certainly doesn't dictate my life.

The comments that you feel you are 'paying so much tax by going over it' is the mistake you are making. You pay very little for the amount of money you can spend. It's more yes But it's not crippling or anything. Just think what the rest of the population is paying..

[PurpleGorilla]

Can I afford to buy?

Just think what the rest of the population is paying..

Most of the country is on tax credits and benefits!

[heyya99]

I work to live. The tax efficient level is nice to work to if I don't need it but I don't bat an eyelid about spending on something I'd like that takes me over. Is a nice to have but it most certainly doesn't dictate my life.

The comments that you feel you are 'paying so much tax by going over it' is the mistake you are making. You pay very little for the amount of money you can spend. It's more yes But it's not crippling or anything. Just think what the rest of the population is paying..

The payment on account is a big deterrent to that in my opinion.

[northernladuk]

The payment on account is a big deterrent to that in my opinion.

As I say, tax is not a deterrent to living my life. Not fun paying it but I aint going to miss out on something just because a payment on account... Life, family and posting on CUK are more important.

[heyya99]

As I say, tax is not a deterrent to living my life. Not fun paying it but I aint going to miss out on something just because a payment on account... Life, family and posting on CUK are more important.

I hear you. I suppose I'm thinking that by paying so much extra tax, you are running the business like a permie without the security, holiday pay, sick pay etc.

[WTFH]

heyya99, what is the answer you want us to tell you with regard to your question about being able to afford to buy the flat?

[heyya99]

heyya99, what is the answer you want us to tell you with regard to your question about being able to afford to buy the flat?

I have never asked you a question in my life.

[TheFaQQer]

Life, family and posting on CUK are more important.

Not necessarily in that order.

[TheFaQQer]

I have never asked you a question in my life.

Next time you pose a question like this

Can I afford to buy?

it would be helpful if you could note which posters this is not asking a question of.

Ta.