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Taking money out of your business isn’t as simple as checking your bank balance and transferring cash. The way you pay yourself as a director affects your tax, your cashflow, your compliance, and ultimately, your personal financial wellbeing.
Step 15 in the Plan, Profit, Prosper planner is all about structuring your drawings the right way.
A smart mix of salary and dividends can save you thousands in tax each year, but the right setup varies depending on your income, structure, and business plans.
How you extract profit, whether through salary, dividends, pension contributions, or other benefits, directly impacts the amount of tax and National Insurance you pay. A poorly structured approach could see you:
But a well-structured plan? That keeps more in your pocket and ensures the business stays healthy.
Yes, tax efficiency is important. But this is also about financial planning.
Ask yourself; what you need to live on this year, how much you want to save for retirement, and what does your income look like in a quiet trading month?
The right drawings strategy gives you:
Your business should be working for you, not the other way round.
Dividend tax rates, corporation tax, National Insurance thresholds are always shifting. What was smart last year might not be today.
That’s why a year-end review is essential.
Together, we can:
We’ll make sure the money you’re taking out is safe, sustainable, and serving both your lifestyle and your business.
You work hard. You should feel confident in the way you pay yourself.
A smart drawings strategy means fewer tax surprises, more stability, and peace of mind.
Download the free Plan, Profit, Prosper planner now and use Step 15 to review your drawings.
Want help working through the numbers? Book your free 30-minute planning session and let’s make sure your drawings are tax-efficient and stress-free.
