How do I pay myself as a sole trader?

How do I pay myself as a sole trader? You don't pay yourself a wage. As a sole trader you take money out as drawings, which are not an expense. In 2026-27 you pay Income Tax and Class 4 National Insurance on your profit, whatever you take out. Not in a way that cuts your tax. HMRC's toolkit says money a sole trader takes out is not an allowable business expense, even when it is described as wages or a salary. It is drawings, and your tax is worked out on your profit. Not separately. Income Tax and Class 4 National Insurance are worked out on your profit, not on what you take out. You pay the same tax whether you take out half of your profit or all of it. Not for tax. Either way it is money taken for your own use, so it is drawings and not an expense. Cash leaves less of a trail, so note the date and amount when you take it. Read the full answer, with every source, at rightotax.co.uk.