What is a creditor?

Definition of a creditor

A creditor is a person that your business owes money to.

Your business's creditors might include suppliers whom you haven't yet paid for the work they've done for you, such as your solicitor, or your accountant. These creditors are also called 'trade creditors'.

It's the end of the tax return as we know it! Find out about HMRC’s Making Tax Digital plan and how it will affect you with our free guide.

Your business might also have other creditors, such as money it owes to HMRC for VAT, or to its staff for wages.

Got questions? Ask Emily!

FreeAgent's Chief Accountant Emily Coltman is available to answer your questions in the comments.

Bookkeeping and tax tips

We'll keep your email safe · Read our privacy policy