If only I had a £1 every time I hear the, ““I own all the shares, so the company bank account is basically mine” argument.
I grant you – it does sound logical.
Unfortunately, here’s the reality
A limited company is its own legal person.
IT OWNS THE MONEY.
You don’t – even if you’re shareholder, director, CEO and head of the office cookie jar.
Your role?
Steward. Guardian. Professional grown-up.
You can only take money out via:-
– Salary
– Dividends (from actual profits)
– Legitimate expense reimbursements
Get it wrong and you could face:-
– Surprise tax bills
– Breaches of the Companies Act
– That awkward conversation with your accountant
Golden rule:
Treat the company’s bank account like it belongs to a very strict relative who will only let you spend on business purposes – because legally, that’s the truth.
DO YOU TOLERATE LOW MARGIN WORK?
If your profit margins are thin, there is a real danger you are running a charity for your least valuable customers. Low margin work is