Step 2 Work out your business and household budget

Checklist​ for business budget

Use this simple checklist to make sure you take the right steps to work out Your budget.

Information:

limited company budget sheets

If you are a director of a limited company, we advise you to ask your accountant for help to work out a company budget. This is because the company is a separate legal entity to you and its finances should be separated from yours. You should then be able to work out how much the business can pay you. This will help you to fill in Your budget based on your household spending.

Are you filling in the right budget?

If you are a sole trader, a partner in a partnership or a director of a limited company you can use the advice and guidance in this section to fill in Your budget. Use the link below to check your business status. If you have a buy-to-let property, you will need to fill in a different business budget. Contact us for advice.

Business status

Work out a business budget sheet

Follow the advice and guidance in this section to list all your income and outgoings so that you can see how much the business can afford to pay you (your drawings).

Working out your business income

Working out your business outgoings

Remember: 

working out your budget

Use our budget tool, Your budget, to help you.

Can you increase your business income?

Before you start to look at your business budget, check to see if there are ways of increasing your business income.

Ways of increasing your business income

Can you cut down on your business outgoings?

You might be able to cut down on some of your business outgoings by budgeting better or shopping around for the best deal.

Reducing your business outgoings

 

Splitting business and household costs

 
There are some costs you may have for your business and for your home. This can include things like travel and phone costs. Remember to work out how much of the cost is for business use and how much is for household use.