Step 2 Work out your business and household budget

​Working out your business budget

Working out a business budget is important because it helps you:

  • see how much money is coming into your business;
  • see how much money you are spending on business costs;
  • work out roughly how much income tax, National Insurance and value added tax (VAT) you will have to pay;
  • see how well your business is doing and where you may be able to cut costs;
  • decide what you can really afford to draw (take) from your business each month;
  • plan your household budget around how much you are going to draw from your business; and
  • work out affordable offers to your creditors if you think this is the best way to deal with your debts. 

Why do I need to fill in a business budget?

  • Once you know how much you have left over to pay your creditors, you will be able to decide your best option for dealing with your debts.
  • You should save or print a copy of your budget so that you can keep track of how you spend your money.
  • If your circumstances change, you can log back into Your budget and update your information. 

If you have problems using Your budget, contact us for advice.