We currently owe approx $6000 to the tax man since dh kinda works for himself.
We also have a line of credit that we would like to pay off as quick as possible.
3 Q's:
1) Should we pay the CRA off 1st and as quickly as possible, and then concentrate on the LOC?
2) How much should we be setting aside per pay cheque? I'll use easy #'s eg: say dh brings home $1000 cheque, should we deduct 30% for income tax bringing pay to $700, then deduct 13% ($130) for HST bringing us down to $570?
3) What is the interest rate that they charge past due taxes? IT & HST?
Thank you
