How to withdraw funds from your organisation – Differences between Company & Sole Trader Withdrawals
This month’s theme for MJB Avanti is How To Withdraw Funds From Your Organisation, and this week we will cover Differences between Company & Sole Trader Withdrawals
Payroll is paid to employees (either a Director of a limited company or staff of either type of business) .
Drawings are when a sole trader or partner withdraw money from their business.
Dividends are a bonus paid to shareholders, (the owners of a limited company). And can only be paid if there is profit and a positive balance sheet.
Payroll is a deductible expense, but Dividends & Drawings will not reduce your taxable profit.
MJB Avanti provide a full Payroll Bureau Service. If you know a limited company with one or more employees and they may not be taking advantage of the allowances available please ask them to contact us.