Welcome to the March edition of News for Small Business.
With March being a popular year end for small companies, we’re taking a closer look at the consequences of withdrawing money from a personal company and how to do so as tax efficiently as possible. Unlike sole trades or partnerships where withdrawing money is relatively simple, there are far more considerations for limited companies, including the impact of an overdrawn director’s loan account.
We also have good news to report; this month the government announced a cut in red tape and an additional £1bn being made available to small businesses via the Regional Growth Fund. Read our articles below to find out more…
March is a popular year end for small companies to opt for because it falls in line with the tax year. Therefore, this time of the year sees directors and shareholders undertaking a pre-year end review and high on the agenda, is often how to deal with the dreaded overdrawn director’s loan account.
Taking money from the business for personal use when trading as a sole trade or partnership is fairly painless and unless proprietors’ drawings are a major drain on the business’ assets, there are generally no tax implications.
A company on the other hand is a separate legal entity, and therefore, making withdrawals from a personal company requires far more consideration……read more
DISCLAIMER: Advice shared in this newsletter is intended to inform rather than advise. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this newsletter, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.
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