could you explain the correct way to record wages for myself as being a sole trader, in simplified form please
There is no such thing as self employed wages, all income you generate is taxable regardless you take money out or not
Hi @dyson1966
As @FaradayKeynes mentions, as a sole trader you don’t take “wages” as such as there is no legal separation between you and your business in the eyes of HMRC.
However, you can record Drawings, which is when you take money out of the business. This is useful for things such as your Self Assessment tax return.
There’s a more detailed guide on recording this, here. Usually, your accountant can help with this.
Simply transfer any amount you think are your Wages or Salary to Drawings accounts. Sole traders don’t have wages or salary, it’s all yours. Profit or Loss, and you pay tax on that. 