One question we are often asked is "How can I take money out of my Limited Company?" This has also been one of our most read blogs, so we have turned it into a slideshare.

1. How to take money out of a
Limited Company
.... The correct way for you and your
business

2. When you are running a Limited
Company
You must ensure that you are
familiar with the ways in
which you can withdraw
money as a director

3. As a director of a Limited
Company, you can take money
from the company in three ways

4. 1: Salary, Expenses and Benefit
If you want to draw salary, expenses or
benefits you must register the company as
an employer with HMRC
The company must deduct income tax and
national insurance and pay this along with
any employer national insurance
contribution to HMRC

5. 2: Dividends
Dividends are paid out of the business
profits after corporation tax has been
deducted
It is illegal to take out more dividends than
the total amount of available profits from
current and previous financial periods

6. Plus…
You must hold a meeting to ‘declare’
the dividend and keep minutes of the
meeting, even if there is only one
director /shareholder

7. You must also produce a dividend
voucher for each shareholder
detailing – date, company name,
name of shareholder, amount of
the dividend to be paid, and the
dividend tax credit

8. And..
You must give a copy of the dividend
voucher to the shareholder and keep
a copy for the company records.

9. 3: Directors’ Loans
If you take more money out of the
company than you put in, and it
isn’t salary or dividend, it is called
a director’s loan.

10. If the company makes loans to
directors it must keep detailed
records of these transactions –
there are detailed tax rules about
how directors’ loans are handled

11. Don’t leave it to chance…
A good accountant can advise you
on running a Limited Company

12. This has been a slideshare presentation from
Tracy Newman Chartered Accountant
Thank you for reading
www.tracynewman.co.uk
0333 577 0135
info@tracynewman.co.uk