Question

[simon]

Ok,

A Business owner takes £500 for his own wage out of the business's income each month.

The rest of the business's income goes on expenses to run the business and the left over money stays in the business account.

A year passes by, the profits add up in the business account.

Can the owner draw out the money in the business account and spend it on anything else other than the business ?

If so will it b taxed as his income ?

ALSO

can the owner declare all profits from the business as his monthly wage ? And just invest money in in to his business when he wants ??

warwicktiger

Is the business a sole trader or a limited company?

[simon]

Sole trader

warwicktiger

The all of the profit is taxable, wether he withdraws it or it accumulates in the business account.