paying myself a wage

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    paying myself a wage

    At some point i will go and see a tax adviser but i would like a bit of knowledge beforehand. I am now in a position to hopefully pay myself a wage from the houses which i rent out. If i make for example £25,000 before tax from renting property and i want to pay myself say £1,500 a month, what would be the best practice in terms of tax/business proceedures. As i manage my own properties should i set up a separate letting business and transfer £1,500 into it a month. Would i be paying 2 lots of tax? Any ideas please.

    #2
    You cannot really "pay yourself a wage" unless you are trading as a limited company.
    Any money you take out of the business is drawings and not a wage. Drawings are not taxable as you should have already paid tax on the profits.
    I am assuming that you are a sole trader?
    If you are a company, the position is different.

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