Hi all looking for some advice.
I have been running a gymnastics / dance school for last two years whilst I was also working as a full time teacher . The business grew and this september I made the decision to go part time teaching . I D two days a week teaching and earn about £800 a month fro thos two days . I hadn't drawn any money from my business over past two years as I was working full time and e erupting got out back in to buy new equipment, train coaches etc etc. I haven't drawn a wage as yet even because I was living with my partner and the money from teaching was enough for us to manage on with his wage.
How ever so now I have broken up with my partner :( and I need to draw a wage from the business. I would also like to get a mortgage at some point and I realise this can be a nightmare when you are self employed and also single !!! But I feel like I really want to go for it and not be dependant upon a relationship to ever have a house !!!
Anyway so I'm looking for advice on how best to run my business so the banks and mortgage brokers will see it favourably when it comes to getting a mortgage. Like how much should I draw and how do I d it . I've very new to running my own business and so I am quite ignorant when it comes to finances etc . I'm just slef employed at the mo but someone did say I should consider being a ltd company to draw a wage?
The business turns over about £4000-£5000 a month the current outgoings for staff, insurance and hall rent are approx £2600 -£3000 so I guess the profit is whats left although I've never taken anything from it now I'm single I'm going to have to !
What is the best way to do this for tax and for mortgage purposes? Any advice is greatly welcomed. I have about £25-£30k In savings towards a deposit for a house.
Any advice or suggestions welcomed!
I have been running a gymnastics / dance school for last two years whilst I was also working as a full time teacher . The business grew and this september I made the decision to go part time teaching . I D two days a week teaching and earn about £800 a month fro thos two days . I hadn't drawn any money from my business over past two years as I was working full time and e erupting got out back in to buy new equipment, train coaches etc etc. I haven't drawn a wage as yet even because I was living with my partner and the money from teaching was enough for us to manage on with his wage.
How ever so now I have broken up with my partner :( and I need to draw a wage from the business. I would also like to get a mortgage at some point and I realise this can be a nightmare when you are self employed and also single !!! But I feel like I really want to go for it and not be dependant upon a relationship to ever have a house !!!
Anyway so I'm looking for advice on how best to run my business so the banks and mortgage brokers will see it favourably when it comes to getting a mortgage. Like how much should I draw and how do I d it . I've very new to running my own business and so I am quite ignorant when it comes to finances etc . I'm just slef employed at the mo but someone did say I should consider being a ltd company to draw a wage?
The business turns over about £4000-£5000 a month the current outgoings for staff, insurance and hall rent are approx £2600 -£3000 so I guess the profit is whats left although I've never taken anything from it now I'm single I'm going to have to !
What is the best way to do this for tax and for mortgage purposes? Any advice is greatly welcomed. I have about £25-£30k In savings towards a deposit for a house.
Any advice or suggestions welcomed!