Sole traders wages

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
If a sole trader pays himself a wage does this mean it has to be concluded has drawings or can it be an expense of wages?<BR><BR>Many thanks

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Sole traders wages

    <BR>A sole trader is considered to be one and the same as his business - a limited company is separate from its directors and shareholders, but a partnership or sole trader isn't.<BR><BR>As the person and the business are the same, the person cannot pay themselves a salary - obviously! So all money taken out is classed as drawings.

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