There are many things to consider when setting up a company, but one of the most important is the necessity of keeping your business and personal finances separate.
This reflects one of the key responsibilities of a company director - to ensure that you make decisions that benefit the company as a whole, not yourself. In fact, you have an obligation to notify shareholders if any transaction the company makes might benefit you personally.
If your personal and business finances are not kept separate, you run the risk of being in breach of the duties of a company director as laid out in the Companies Act of 2006, which may lead to fines, penalties or even prosecution.
If you are thinking of setting up a company or are involved with an existing company and you need advice on keeping your business and personal finances separate, it’s a good idea to get professional advice from a provider like Coddan.