How does a Sole Trader get paid?
A Sole Trader you:
- do not get ‘paid’ as such – rather, a Sole Trader can extract profits from the business (profits being sales less expense and tax).
- don’t have to extract all profits from your business – you can choose to reinvest it or keep it as ‘working capital’ i.e. money for your till.
- are taxed on your all your profits regardless of whether or not you actually withdrew cash from your business bank account for personal use.
So to pay yourself as a Sole Trader all you really need to do is withdraw cash (called ‘drawings’) from your business bank account.
Products related to this post:
Union VAT OSS Registration (in Ireland)€150.00
Union VAT MOSS Registration (in Ireland)€150.00
STARTER PACK: Irish Tax Registrations (for new companies)€450.00 – €1,050.00
non-Union VAT MOSS Registration (in Ireland)€300.00
Sole Trader/Company Director Income Tax Registration (with ROS)€150.00
VAT Registration (in Ireland)€150.00 – €300.00
Business Name Registration (in Ireland)€150.00