Self employed - how much to pay yourself

[hippy-chick]

For all you s/e therapists, how much do you pay yourself a week/month?

Do you pay a set amount every week regardless of how much/little you work

or

Do you pay yourself a percentage of your takings?

 

[choc choc]

At the moment nothing , lol all goes back into the business , maybe one day.

 

[hippy-chick]

At the moment nothing , lol all goes back into the business , maybe one day.

I've been paying myself a set wage every week, but am ready for a pay rise.
don't know which way to go with it at the moment.

 

[Vanessa]

Our accountants recommended that I pay myself (as a director) £6000 p/a. I think this is the minimum amount that I can earn and pay NI. It's not a lot for 40+ hours a week but I love having my own salon. All the girls in the salon earn more than me!

When I was a sole trader I still payed myself a wage, just below the tax threshold, again I was happy to do this and build up money for training etc.

I'm fortunate that Mike is able to support me (by paying for just about everything) and our home and helps in building up the business. I couldn't survive on the £6000 wage on my own!

 

[hippy-chick]

Our accountants recommended that I pay myself (as a director) £6000 p/a. I think this is the minimum amount that I can earn and pay NI. It's not a lot for 40+ hours a week but I love having my own salon. All the girls in the salon earn more than me!

When I was a sole trader I still payed myself a wage, just below the tax threshold, again I was happy to do this and build up money for training etc.

I'm fortunate that Mike is able to support me (by paying for just about everything) and our home and helps in building up the business. I couldn't survive on the £6000 wage on my own!

Thanks for that Vanessa. How much is £6k a week/month (not good at maths)?
At the moment I'm paying myself £100 a week even when I'm on holiday. Suppose thats £5200 is it? (told you I was crappola at maths).

 

[cabinkel]

I pay myself a percentage each week. I take a 1/3 of the weeks takings. Its broken down as 1/3 stock and new courses, 1/3 for tax and NI, and then i take thelast 1/3. Iv done it this way for a year now and it seems to work.

 

[Sparklepink]

pay???..... whats that?........lol

 

[carlydee@hotmai]

I am the same no wages for me at the moment.

I think it will take at least a year, need to get all the overheads paid for.

But its fun!

x

 

[Katykitten]

pay???..... whats that?........lol

My sentiments exactly!! lol xx

 

[hippy-chick]

pay???..... whats that?........lol

I am the same no wages for me at the moment.

I think it will take at least a year, need to get all the overheads paid for.

But its fun!

x

My sentiments exactly!! lol xx

awwww, bless ya alls. I've been doing this on and off for 12 years, 5-6 years seriously and have always managed to take something.

 

[collin]

What you can take out of any business is very much up to you as an individual given your objectives
If you are just starting out of course things will initially be tight so not much can be taken out.
Once the business starts rolling of course you can start to draw down on your hard work.
Everything is relative....even if you are doing well its always wise to leave funds available within the business for "a rainy day" to pay your tax bill at the end of the year,marketing costs etc.
earnings therefore are relevant to your business and your personnel needs.
If you have been trading for a number of years and are simply not drawing out enough ..well this is a good time to take some time out...sit back and re look at your business and ask yourself.."how can I change things so that my business gives me the financial rewards given my input"

Whilst doing what you do is something you may enjoy...you do need to do your utmost to try and derive the financial benefits to.

It is always important to remember that even if your business is new or that things are simply "tight" that you pay a minimum wage or at least your NI contribution so that when you retire your contributions are fully up to date :hug:
Oh and dont forget to make a pension contribution...no matter how small you will thank yourself one day :hug:

 

[hippy-chick]

My NI comes out by direct debit and I pay £75 a month into a seperate account for tax.

I have no pension whatsoever.

I have a shortfall on NI contributions for when I first moved to the NE and couldnt sign on, I couldn't afford to catch a bus to sign on for contributions, but am now kicking myself.

 

[collin]

My NI comes out by direct debit and I pay £75 a month into a seperate account for tax.

I have no pension whatsoever.

I have a shortfall on NI contributions for when I first moved to the NE and couldnt sign on, I couldn't afford to catch a bus to sign on for contributions, but am now kicking myself.

You can make an additional payment at any time to catch up..try and do this if you can..it will pay dividends in your future old age

 

[hippy-chick]

I asked ages ago if I could pay it back in installments but they said no.
I'm now in a position to pay it, so should get in touch, thank collin.

 

[joe90]

Ha ha, pay, what's that. All mine goes back into the business at the moment. However I am lucky enough to have another job a couple of days a week - that pays the bills.

 

[Brandywine]

I pay myself a very small set amount every month. Its about half of what I earn with most of the rest going on extra training/products/etc and a small amount on NI. I haven't paid much tax so far as I've been just under the threshold for my personal allowance, but I will have to start taking this into account soon.