Self employed stupid question

onamission_2

I'm setting up as SE (sole trader) from next month having been PAYE all my working life. What I haven't understood or worked out is how i pay myself.. I have set up a seperate bank account for the business expenses etc but do i just take whats left after paying out business expenses on monthly basis (incl NI and Tax) ?

Lifeisbutadream

It depends how you want to do it.

I pay myself a set amount (basically the minimum I can by on) and plough the rest back into the business - I pay tax and NI out of what I keep in the business account.

selfemployeddebtbuster

Hi,
When I first started I basically lived off basic rations putting all my money back into the business. When I had my first years accounts done I still didnt have to pay any tax ...I even received a cheque back from the tax as I had been employed on PAYE for part of that year... I now take out a set amount each week. Get a decent accountant and you wont need to pay any tax for a few years because everything is offset against your tax bill...such as electric at home, petrol, broadband connections, Fixtures & fittings, car almost everything..Good luck in your new venture