Reply to: Can I afford to buy?

[heyya99]

BTW on the broke people living like they are rich... They are giving the full 29k years worth of benefits to some families in one go and then watch what they do. Should be a bit of car crash TV to get the blood boiling.

Whilst the bankers get a sympathetic ear because their bonuses are cut.

[northernladuk]

Taxation is only for the middle classes. The wealthy and the big corporations need not worry while Gideon is in charge.

So yes, you should look to minimize it as far as you practically and legally can. The less tax you pay now, the more funds you will have to build your future with.

I don't disagree with NLUK and I would try to attain a certain standard of living before worrying about taxes, but ultimately you have to balance your means with your needs and your wants.

Rich people stay rich by living like they're broke. Broke people stay broke by living like they're rich.

Hee hee.. This ^

What you have to work out is which part of your future is the bit you are building up to though. No point missing out for the next 10 - 15 years and then being stuck in a mindset you can't spend it. It is a balance that I don't think should be driving by tax levels. There are some people that withdraw it all, spunk it on high tech stuff and a lifestyle and live hand to mouth, more the fool them. There are others that curtail their lifestyles chasing tax levels when there is no need to, more the fool them as well. There is a lot in between these two that apply a common sense budget and balance saving and spending to achieve a happy equilibrium whilst keeping one eye on the tax bands. I know which one I'm happy to be.

BTW on the broke people living like they are rich... They are giving the full 29k years worth of benefits to some families in one go and then watch what they do. Should be a bit of car crash TV to get the blood boiling.

[northernladuk]

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?

Booom, there it is. Should have been post number 2 this with hindsight lol.

[ChimpMaster]

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.

Taxation is only for the middle classes. The wealthy and the big corporations need not worry while Gideon is in charge.

So yes, you should look to minimize it as far as you practically and legally can. The less tax you pay now, the more funds you will have to build your future with.

I don't disagree with NLUK and I would try to attain a certain standard of living before worrying about taxes, but ultimately you have to balance your means with your needs and your wants.

Rich people stay rich by living like they're broke. Broke people stay broke by living like they're rich.

[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.

[TheFaQQer]

Life, family and posting on CUK are more important.

Not necessarily in that order.

[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.

[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]

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.

[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]

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.

[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!

[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..

[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.

[SueEllen]

I'm looking for opinions of those who may be in the same situation. My point of the 1400 rent was that I have been living on a similar budget in the past. The difference with buying is the lack of get out clause plus extra expenses (repairs, service charge, etc).

This is what people are pointing out to you.

You are leaving little leeway if things go wrong.

If for example you couldn't work for 6 months how would you pay your mortgage and the service charges?