💼 How Can Company Directors Extract Funds from Their Business, Legally and Efficiently?

One of the most common questions I hear from Business Owners is:

 “What’s the best way to take money out of my company?”

The answer depends on your business structure, tax position, and long-term goals, but here are the most common and compliant methods:

✅ Salary – Paid through PAYE, this gives you access to state benefits and contributes toward your pension, but it’s subject to income tax and NI.

 ✅ Dividends – Tax-efficient when your company has distributable profits. They're not subject to National Insurance, but carry their own tax rate.

 ✅ Director’s Loan Repayments – If you’ve loaned the company money, repayments are tax-free (just keep the paperwork clean!).

 ✅ Company Expenses – Reimbursing yourself for genuine business expenses helps reduce taxable profit, just ensure they're well-documented.

 ✅ Pension Contributions – Employer contributions are a smart, tax-deductible way to build wealth for the future.

 ✅ Selling Shares – In the right circumstances, selling shares can be a way to realise value, often with favourable Capital Gains Tax treatment.

📌 Key takeaway: A balanced mix of these strategies, tailored to your situation, can help you extract value efficiently and compliantly.

💬 If you’re a director wondering whether your current approach is the most effective, I’m happy to chat or connect you with a specialist.