How to pay myself as a sole trader?
tom at badrunner.net
Fri Apr 25 11:18:42 EDT 2008
I'm registered as a sole trader in the uk, and up till now all my income has
just gone straight into my business account (which is also an account under
assets in my gnucash accounts).
However i now need to transfer money from here to my personal account
(essentially paying myself as far as i can tell). Im not sure how best to
represent this in gnucash however. Should i set myself as the only employee
and pay myself like that, or should i set up another asset account called
"personal" or something and just do direct transfers from business->personal
every time i use money for non business transactions, or something else?
Also, with regards to national insurance (and presumably income tax when i
get round to doing that) i currently have that just going straight into an
expense account under Expenses->Taxes->NI. I presume thats the best way of
doing that as it was closest to the default set of business accoutns gnucash
sets up, but if this would be considered wrong by an accountant, what would
be best? I only ask as the tax is on me directly rather than the business,
so im not 100% how i should represent that.
Thanks for the help
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