People often ask if there’s a general rule about how much they can take from their business as ‘wages’. Our suggestion is to work backwards, especially when you are still in the early stages of business where cashflow is a bit up and down. If you can ensure there is enough money in the bank account to pay all business costs, loan repayments and you’re putting some money aside for income tax and GST if you’re registered, then the leftover is available for you to take for your own use.
By doing it this way you’re giving your business a better chance to remain financially stable while keeping up to date with taxes. If you’re not sure about this or how much to put aside for tax, please feel free to contact us – we’re always happy to help.