Stop Treating Your Business Like a Cash Pig

If you’re raiding the business bank account every time you fancy a holiday, you don’t own a company — you’ve just built yourself an expensive cashflow machine with branding.

And it’s only a matter of time before HMRC or your accountant pulls a face so intense it cracks their monitor.

Here’s the truth most business owners hate hearing: Just because you can doesn’t mean you should.

💸 Salary? Dividends? Director’s Loans?

These aren't just different names for paying yourself — they come with different tax treatments, rules, and implications.

• Salary gives you pensionable income and counts for mortgage affordability, but comes with NI and tax.

• Dividends are tax-efficient — to a point. Hit the £1,000 allowance? Hello, dividend tax. Nevertheless, the tax rates are lower than income tax

• Director’s Loans must be repaid within 9 months of year-end. Otherwise? Corporation tax surprise party (25% charge).

🤯 The Chaos of Mixing Finances

If you’re paying for personal Netflix from your business card, or treating your company account like a tap that turns on and off as needed — you’re not running a business, you’re freelancing with receipts.

🚫 Mixing business and personal is a tax and audit disaster waiting to happen.
✅ Separate your life: pay yourself properly, and let your business breathe.

🧠 The Smarter Way to Run Things

• Set a monthly salary/dividend draw — make it predictable

• Build a buffer in the business — not every penny needs to be pulled out

• Plan your personal finances separately — treat yourself like an employee, not a sponge

Because real wealth is built through strategy, not spontaneous cash grabs.

🧾 Final Thought

You’re the boss. But that doesn’t mean you should be rummaging in the till every week.

Pay yourself like you respect your business.

p.s. not advice obvs!

This article would be correct as at the time of writing but as we know; rules and regulations can change. Seek advice before taking any action.