You and your company: two separate legal persons
The company’s money is not your own – here's why it matters
Your company is a separate legal person. It owns its own money, signs its own contracts, and pays its own tax. You own the company, but you and it are not the same thing.
What this means day to day
The company's money is not your money until it has been paid to you properly, as salary, a dividend or repayment of money you have lent it. Every transfer between you and the company needs a label, which is why we ask you to keep company and personal spending separate.
Why it matters
Mixing funds creates director's loan account entries that can trigger tax charges and makes your records much harder to keep clean.
💡 Good to know: This is the single most important concept for a new director. If you are ever unsure whether a cost belongs to you or the company, ask us before paying it.
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