Your business bank account is not your piggy bank.

Many business owners suggest withdrawing money from the company whenever they need it.

However, it is crucial to pay yourself properly to avoid and unpleasant surprises at a later date.

When transitioning from self-employment to a limited company the rules change. You and your company are separate legal entities and the profit is not automatically yours.

If it is not:

• Salary (through a registered payroll)

• Dividends (properly declared)

Then the money you are withdrawing is technically a loan from your company to you. These director's loans are subject to specific rules.

The problem is that most new company directors are not taught this information.

Paying yourself properly is not merely about meeting HMRC compliance requirements; it is about:

• Financial clarity

• Tax efficiency

• Avoiding significant future complications

Therefore, it is important to be honest about your confidence in paying yourself. If you are unsure, please contact us via email or direct message and we will be happy to discuss your options.

I hear business owners say, "just take money out of the company whenever I need it" far too many times