Taking a wage

Discussion in 'Chit Chat & Introductions' started by Ryan, Mar 13, 2012.

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  1. Ryan

    Ryan Guest

    So how do u boys go about taking a wage from what you earn.

    use £1000 a month as a example with around 200-300 running costs
     
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  2. bluemonkey

    bluemonkey Guru
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    if you are a sole trader ie not limited, then everything you earn - expenses is a wage in the eyes of the tax man
     
  3. Bluemonkey is right, as a soletrader you are the company and take drawings (money) from it.
     
  4. James

    James Guru
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    I withdraw £100 a week, it shows the tax man your living on something.

    However as I'm a sole trader potentially everything I earn is mine, the wage is there just for show.
     
  5. Shiny

    Shiny Guest

    Quetion? as a sole trader does what you draw as a wage each week go down as a business expence ?
     
  6. Paul

    Paul Guest

    Jp does that mean you pay less tax on both as one is business and the other is personal ?
     
  7. bluemonkey

    bluemonkey Guru
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    no, u pay tax as a personal level on everything after expenses
     
  8. Paul

    Paul Guest

    Rite so there's no business tax at all for a sole trader rite?
     
  9. Ryan

    Ryan Guest

    ah right so for example if u had £700 after after expenses its taxed at the normal rate for that amount.

    but its oviosly upto you how much u take out of the business to live on personally.
     
  10. bluemonkey

    bluemonkey Guru
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