What are drawings?

Definition of drawings

Drawings are sums of money that a sole trader or partner takes out of his or her business bank account.

Drawings can be:

  • Withdrawals from your business bank account
  • Transfers from your business bank account to a personal account
  • A payment for a personal cost from your business's bank account.

'Personal costs' paid out of the business bank account might be:

  • Contributions to your pension scheme; these go in a different part of your tax return from your business's accounts.
  • Your own income tax and National Insurance payments; HMRC view these as a personal liability, rather than a business one, for sole traders and partners.
  • Costs that are clearly non-business, like your weekly shop or family holiday.

Got questions?

Bookkeeping and tax tips

We are committed to keeping your information safe. Read our Privacy Policy to find out more.

Related Definitions

Are you an accountant or bookkeeper?

Find out more about FreeAgent for your practice.