How do you???

[lor]

Hi there,
Just wondering how everyone else budgets for toys etc
I put away my tax money every month and thought that if I used this money for resources it would be less strain on my cash flow
e.g if I buy toys worth £30 pounds I would put away £30 less that month(hope that makes sense)
but worried that I'll have a shortfall for the tax man but if I don't do it like that am I supposed to take it out of my own pocket?

Thanks in advance xx

[shortstuff]

im not quite sure what you mean? if the money for toys etc doesnt come out of your pocket where would it come from? It is up to you how you budget for your tax bill. At the end of the day it is your business.

[lor]

Sorry I don't think I explained it very well,
I put my tax money in a separate account every month so I don't confuse it with my money( I know theoretical its all my money but the tax man will want paying) then I thought the easiest way to pay for new resources would be to take it straight from this account and not my personal account.

Still not sure if that makes sense xx

[FussyElmo]

Personally I if I was doing this way - don't earn enough to pay tax.

I would keep the tax money completely separate. Don't dip into it because you do it once you do you always will.

Pay for your resources out of your pocket.

If you have any money over from paying your tax its then yours

[miffy]

Personally I if I was doing this way - don't earn enough to pay tax.

I would keep the tax money completely separate. Don't dip into it because you do it once you do you always will.

Pay for your resources out of your pocket.

If you have any money over from paying your tax its then yours

I'd do the same as fussy - then if there is anything left over you can treat yourself!

I know what I'm like for buying stuff so I'd be worried I wouldn't have enough left for tax

Miffy xx

[Mouse]

Each month I set money aside for tax, NI and resources. If my resources fund runs out anything I buy comes out of my own money.

The problem with doing it your way is that £30 in resources doesn't equate to £30 in tax.

As a simple example, if your tax bill was £360 a year, you save £30 a month towards it.

If you spent £30 on resources and deducted it from the amount you'd saved, you'd have £330 for you tax. But your tax will would still be something like £354, so you wouldn't have enough saved.

But, if you are saving a lot more than your tax is likely to be, you're possibly saving enough to cover resources anyway.

[lor]

Thanks for all the advice- have no head for figures think the easiest way to buy resources is to have separate budget

xx

[Mouse]

That's what works for me. Decide how much you want to put aside each month for resources. Some months I spend it all, others I don't and it rolls over. Then I can have a big spending spree if I want

I like it as well as it doesn't feel as if I'm spending my own money on resources!

[bunyip]

I put by a set amount each month towards tax, Ni and annual fees (Ofsted, insurance, ICO, training, etc.) The rest is 'mine' but I still have to use some of it for toys, resources, stationery, etc. But then they are my toys.

If what's left doesn't stretch to buying toys, etc. then I have to exploit a whole 'nother revenue stream.....

"No children, I'm not really stealing your dinner money. Just think of it as redistribution to the toy fund..........."