The Book-keepers Forum (BKF)
The Book-keepers Forum (UK) -> Professional Book-keepers in Practice -> self employed person's wages
Post Info TOPIC: self employed person's wages
lor


Guru

Status: Offline
Posts: 941
Date:
self employed person's wages
Permalink Closed

Just wanted to be 100% sure on something.

When a self employed person takes money from their business a/c for wages etc, would this be the correct way to post in the accounts:

Dr drawings/owner's funds
Cr Business Bank A/C

All help with this much appreciated!, just wanted to make sure that I use the correct methods.

Also with a self employed person, they don't pay tax on their drawings, correct me if I am wrong!

Seems like a simple question, lol!



__________________
Shamus


Forum Moderator & Expert

Status: Offline
Posts: 11981
Date:
Permalink Closed

Hi Lor.

There are various different plays on the account names dependent upon the system your using but basically, Yes.

(Cr) Bank
(Dr) Drawings

Shaun.

__________________

Shaun

Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
RobH


Expert

Status: Offline
Posts: 1963
Date:
Permalink Closed

As regards to tax there is no differentiation between the person and the business, so if a business makes a profit of £20,000 but the trader draws only £5000, the tax will be based on the profits of the business, ie £20000. Similarly if there was a profit of £5000 but the trader drew £20,000 (overdraft etc) they will be taxed on £5000 (profit of business)

__________________
Rob
www.accounts-solutions.com
lor


Guru

Status: Offline
Posts: 941
Date:
Permalink Closed

Thank you for your replies, just what I thought - thank goodness!

__________________
Page 1 of 1  sorted by
 
Quick Reply

Please log in to post quick replies.
The Book-keepers Forum (UK) -> Professional Book-keepers in Practice -> self employed person's wages
Tweet this page Post to Digg Post to Del.icio.us
Members Login
Username 
 
Password 
    Remember Me  
©2007-2024 The Book-keepers Forum (BKF). All Rights Reserved. The Book-keepers Forum (BKF) is a trading division of Bookcert Ltd. Registered in England Company Number 05782923. 2 Laurel House, 1 Station Rd, Worle, Weston-super-Mare, North Somerset, BS22 6AR, United Kingdom. The Book-keepers Forum and BKF are trademarks of Bookcert Ltd. This forum is a discussion forum only. There will usually be more than one opinion to any question and any posting should not be viewed as a definitive solution. No responsibility for loss occasioned to any person acting or refraining from action as a result of any posting on this site is accepted by the contributors or The Book-keepers Forum. In all cases, appropriate professional advice should be sought before making a decision. We reserve the right to remove any postings which are offensive, libellous, self-promoting or engaged in covert marketing. We will not notify users of removals. The views expressed in the forum posts are those of the individual and do not necessary reflect or agree with those of The Book-keepers Forum. Any offensive or unsuitable posts will be removed by the moderators. Any reader of this forum can request for a post to be looked into by sending an email to: bookcertltd@gmail.com.

Privacy & Cookie Policy  About