This will depend upon the legal structure of your business. Sole traders and partners are taxed on their proportion of the company’s trading profits. They are paid by way of drawings from the business, and these drawings are not included in the calculation of taxable profits. A proportion of the money drawn should be set aside to pay personal tax liabilities.  If you’re a director and shareholder in a limited company, then we’d recommend that you pay yourself by way of salary and dividend. A little tax planning can ensure that you’re doing this as efficiently as possible and within HMRC guidelines, while maximising your take-home pay. You’ll also have the option of other benefits and pension contributions this way.