CM Club: Do you pay yourself a wage??

[moonstar04]

I was speaking to another self employed friend last night and they pay therself a wage monthly.

Do any of you do this? At present I put everything back into the business.(saving for a holiday) I was wondering if I was to pay myself a wage how would I write this onto the accounts?

I am not sure how I could do this as sometimes my monthly incomings are not always the same, I am it is normal for them all to fluctuate?

what i do is pay all the parents money into a separate account (dont use a business acount as they charge)
i then pay myself a wage into my curret acount leaving money in my business account to cover tax and new toys

this is what I do, I agreee a business account is too costly. Although I do not transfer much across which is why I asked if any of you pay a set amount to yourselves. If we were employing an assistant they woul dbe paid the minimum wage.

dont know as my wage is different in term time than it is in the holidays

i have written down in my files what each parent pays me each week
so i have a term time wage and a holiday wage.
so say for example i get £400 in the term time i would pay myself £320 and leave the rest in, but if i have just ordered some new toys, or got a pram i would add more to my wage

have not paid my tax bill yet but in my account i have 3k which when i have paid my tax bill the rest can go onto new equipment and i well deserved break

I have a free business account with the Abbey .

Each week I transfer 20% in a savings account to cover tax and emergency fund. I pay 50% less all cash payments I've received into my personal account which disappears to credit card companies. I use the business account to pay for business purchases, which makes it easier when I get round to doing my accounts as nearly everything I've bought for the business is on my statements.

I don't actually specify these transfers on my accounts because these are all taxable and are lumped together as part of the annual profit. If you have an employee thats different and counts as an expense but your own wages are viewed as profit. If you detail your payments to self in your accounts it has to end up in your profit total and not your expenditure total IYSWIM.