If you’re self employed, a business budget is essential.
A business budget will show you how much money your business is making and how much you’re spending on business costs. It will also help you keep up to date with bills and, most importantly, help you work out how much money you can pay yourself as a wage.
Creating a business budget
To make a business budget you need to:
- Work out your average monthly income before any deductions
- Write down all your monthly business expenses. These might include things like business premises, car costs or a business mobile.
- Divide any yearly expenses by 12 to give you a calendar monthly amount to include in your budget. If you pay for things weekly work these out calendar monthly. Don’t forget to include tax, national insurance, VAT and any business debts
- To work out the amount you can pay yourself, you need to deduct your monthly business expenditure from your monthly income
How we can help
If you’re self employed and would like help creating a business budget, you can use our online Debt Remedy tool or call our helpline on 0800 138 1111.
We’ll create a business budget, tailored to you specific business, and help you work out how much money you can pay yourself. We can then use information to create a personal budget and advise you on how to deal with any personal debts you have.
Business debts
If you’re having problems with business debts, and you live in Engalnd, Wales or Scotland, you should contact Business Debtline, or if you live in Northern Ireland Advice NI. They will be able to advise you on how to deal with these.
If you’re concerned that your losing money or you want to know if your business is viable, you can contact the Gov.uk website in England, Business Support in Wales, Business Gateway in Scotland or if you live in Northern Ireland NI Business Info.
