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.
Uh-oh, we're missing some cookies 🍪
We respect your cookie choices so we have only set cookies you agreed to on this website.
Normally you'd see some comments here but we need functional cookies to make that happen. Allowing those cookies would make the comments visible.
The choice is yours.