On personal tax...

Q: My tax bill has gone through the roof. How can I cope?

A: Take deep breaths, grab a calculator, then check and double check the figures.

Solutions:

Background

• Darling's first Budget: the main points

• The Chancellor's speech in full

• Darlings first Budget: the reaction

• Chancellor hits the home budget as his debts soar

• Need to know: Budget 2008

Multimedia

• The winners and losers

Rose-tinted specs fail to offer hope

The obvious justification for Mr Darling’s relatively upbeat scenario is that the outlook is fraught with uncertainty

Multimedia

• Video: the 'fingers crossed' budget

- Place assets in the name of a lower-rate taxpaying spouse to save tax.

- Pay more into your pension. Higher-rate taxpayers receive 40 per cent relief on contributions.

- Use-up your tax-free ISA allowance of £7,200.

On mortgages...

Q: I can’t afford my monthly mortgage repayments. What are my options?

A: Don’t delay. Lenders can and will negotiate.

Solutions:

- Ask your lender for advice – and more time. It might offer you a payment holiday or agree to increase the repayment term.

- Remortgage to another lender that offers a cheaper rate.

- Avoid repossession by offering to sell your home yourself.

On investment...

Q: The value of my shares has plummeted, what should I do?

A: Shut your eyes and pray. It could get worse before it gets better.

Solutions:

- Keep hold of shares, as markets will recover in the long-term.

- But, cash-in poor performers if you are approaching retirement, in case of further losses.

- Brave investors should look for bargains, but phase-in the cash.

On saving...

Q: Why should I bother saving?

A: Forget saving if you are in debt. Cost-cutting is more important.

Solutions:

- Building a nest-egg increases your chances of long-term financial security.

- A cash buffer is vital in emergencies, such as when the boiler breaks down. Aim for £5,000.

- Regular saving attracts more compound interest, which increases the value of your cash.

On debt...

Q: I am drowning in debt. What can I do?

A: Don’t be an ostrich. Communicate - before its too late.

Solutions:

- Overcoming denial is the first step. Tell friends and family.

- Seek free advice from the Consumer Credit Counselling Service, www.cccs.co.uk or National Debtline, www.nationaldebtline.co.uk.

- Investigate ways of earning extra cash. Work overtime or extra shifts, ask for a pay rise, take a second job or rent out a spare room.

On work...

Q: I am worried I might lose my job.

A: Be prepared, smile and suck-up.

Solutions:

- Be positive and enthusiastic. Make yourself responsible for the company’s problems.

- Check your contract and staff handbook for details of your employer’s redundancy policy to prevent nasty surprises.

- Take out an insurance policy that will pay the mortgage if you become unemployed, but beware of unnecessarily expensive deals.

On families...

Q: Our cost of living is sky-high. How can we bring it down?

A: Learn the art of thrift. Say goodbye to holidays and dining out.

Solutions:

- Switch to a cheaper utilities supplier. Price comparison websites such as www.uswitch.com and moneysupermarket.com will help you find the best value.

- Take advantage of tax credits, benefits and childcare vouchers that you are not already claiming, Visit www.direct.gov.uk, www.taxcredits.inlandrevenue.gov.uk, and www.childcarevouchers.co.uk.

- Move to a smaller house if you can, to cash in on the equity and reduce mortgage repayments.

On budgeting...

Q: I am a shopaholic. How can I stop spending money?

A: Get over materialism: think need instead of want.

Solutions:

- Work out what income you have spare after essential bills.

- List everything you spend, then cut out anything unnecessary. Use budget sheets and a calculator, available at www.moneybasics.co.uk.

- Take a ‘spendometer’ with you when out shopping. These can be downloaded on to your mobile phone from www.creditaction.org.uk .

On the carbon footprint...

Q: How can I be greener?

A: Ask yourself: what would Prince Charles do now?

Solutions:

- Break bad habits, by buying local and second-hand goods, using energy-saving bulbs, switch off appliances at the plug.

Recycle

- Arrange an energy audit on your home. Ask your supplier to send an adviser, for free.

- Change to a green energy supplier, such as Good Energy or Ecotricity. It only costs £11 a year more, on average.

On inheritance tax...

Q: Can I stop the taxman getting his hands on my inheritance?

A: Spend it, but spend wisely. Gift cash to relatives and put assets in trust.

Solutions:

- Update your will. Couples can save up to £120,000 by setting up a will trust

- Use your £3,000 a year IHT allowance by giving cash gifts to relatives.

- Pay into a ‘loan trust’ and the trust will pay you back an income. The growth in the value of your assets will be free of IHT.

On motoring...

Q: Petrol is costing me a fortune, but I need to drive.

A: Remember you are not Lewis Hamilton. Drive slowly, carefully or not at all.

Solutions:

- Buy a new car with a more fuel-efficient engine such as a Toyoat Prius.

- Pump-up tyres to reduce resistance and travel lighter. Calculate cost savings at www.dft.gov.uk/actonco2.

- Use the right gear, avoid high speeds and keep the windows closed to help reduce consumption. Visit www.save-petrol.co.uk for more tips.

On cigarettes and alcohol...

Q: I am sick of paying more tax than everyone else because I smoke and drink.

A: The Government thinks you are anti-social. Clean up your lifestyle, or live with it.

Solutions:

- Give-up smoking. You can contact www.quit.org.uk, or call them on 0800 002200, for help and advice

- Go to France for your wine. Cheap ferry prices can be found at www.boozecruise.com. You can haul 90 litres of wine and 3200 cigarettes through customs in one trip.

On property...

Q: I am worried that house prices are going down.

A: Don’t sell if you don’t have to.

Solutions:

- History tells us that house prices will recover, so avoid selling until the upturn begins.

- Rent your house out instead of selling so you are not forced to accept a low offer.

- First-time buyers should move quickly to snap up bargains among forced sales, other purchasers should only buy if they are going to stay put for five years.

On small business

Q: I am bogged-down by red tape. What can I do?

A: Keep on top of admin. Hire a part-time book keeper if necessary.

Solutions:

- Keep paperwork simple by requesting that all statements, including debit card, credit card, and petrol accounts, are sent on a monthly basis.

- Process payments more easily by using a business-only credit card for transactions.

- Calculate how much the Budget will cost family businesses by using an ‘income shifting calculator’, at http://www.contractorcalculator.co.uk/Income_Shifting_Calculator.asp.

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