How do I pay myself??

[the beauty-box]

hi all,

I am just about to leave quite a cushty job in a salon to go out in the big scary world on my own!!! .

I was just wondering how on earth do i calculate my wages?? obviously i know that i will potentially be earning no money and am reasonably prepared but surely i will take a bit? I still need to live?!

Do i have a set wage say a week or do i just see how each month goes and take a percentage and put the other percentage into the buisness?? I have made sure i have the rent for my room for 3months behind me so thats covered but other than that im soooo confused!!

Please help

xxx

 

[persianista]

You pay yourself what you can afford to! Pay your business bills first, put money aside for tax, the rest is yours.

 

[daisyl]

You pay yourself what you can afford to! Pay your business bills first, put money aside for tax, the rest is yours.

I second that. You have no way of knowing yet what you can pay yourself.

 

[FlawlessBeauty]

Ditto, i rent a room. All costs get paid first, i try to put away a bit for business costs in the future, e.g. courses, product, the rest is mine.

 

[Martin Duffy]

As the others say, once you've paid your outgoings you can in theory take out whatever you want, putting tax aside, but remember also that in the first year or so you will want to be re-investing in your business & forming a good cash buffer for ordering products & paying for those things that crop up unexpectedly.

 

[Cathie!]

Make sure you register yourself as self-employed with HMRC too.

Good luck with your new venture xxx

 

[hippy-chick]

I have a standing order that pays money into an account for my tax bill, I pay myself a set wage (sometimes I don't pay myself if a particularly bad week), the rest sits in bank account and it slowly/quickly gets eaten away.

thinking of giving myself a lump sum once my 2009/10 books are done in June, if any is left that is.

 

[satinbaby]

Hhaha you dont !! Not in the first year anyway!
i do it in 1/3 rds
1/3 - pays bills stock etc etc
1/3 - goes in the bank for un accounted items
1/3 - as a wage x