How to spend more than you have got

So here’s the thing: I’m a bit of a ducker and diver, bobber and weaver. No shocks their right, I mean I built this website, I took on HMRC! You’ve got to be just a little bit nuts to do that. Indeed I’ve had tax professionals contact me and – in all seriousness – suggest that I was ‘on the spectrum’ and needed help.

Ok, so here’s what I did that seemed like a really great idea at the time but turned out to be a car crash.

It started when I was out for a pizza and beer with a few friends. The bill came and we split it four ways, two of my friends kicked in cash. I said, “Can I take that cash and I’ll stick it on my credit card?” They nodded.

I – naturally – was down to the wire with cash and paying – like – 20% on my card! So my genius idea was to use the cash to pay off my card and to use my card to pay the bill. This would buy me 30 days of intrest free credit on the card.

First 30 days intreast free – but you knew that.

Had this been a one off it would be no big deal, but it wasn’t just a one off, no this became a bit of a habit.

The result was this: on paper I was spending much more than I had, much more money was going out than coming in.

So when I was investigated HMRC did the maths and said I had been spending about £2k per year that I couldn’t account for.

“Where did this £2k come from?” They asked. “If you can’t explain it we will assume that you were receiving cash for work and not declairing it.”

So I told them the above tail and they said, “That should like a tall tale to us, we don’t believe you.”

So it was my word against theirs.

So – dear readers – learn from this cautionary story, don’t make paper trails that show you are spending more money than you have!