Personal and Business Statements

Many Entrepreneurs use the business’s finances to pay for personal expenses which in some cases are inevitable if you’re starting out or you’re not paid a regular salary from the business, but as these unplanned personal expenses add up it may cause problems with your income allowances and National Insurance contributions.

Another problem is if the Entrepreneur pays for business costs personally and doesn’t recoup or show this transaction as part of the business I can’t always say this will reduce tax liabilities but it certainly won’t show a true picture of your businesses actual performance.

I think there is a struggle with the entrepreneur not separating themselves from the business, I understand why they do it especially in the early days.