A Director Withdrawal is a record of an outgoing transaction which can cover multiple reasons: salaries, dividends or personally paid for expenses owed back to you. Dividends, in particular, should be viewed as a two-step process so we’d always recommend checking that profit is available (profit after tax) before you take this form of income or else you’ll end up with a negative Director Loan Account balance.
To record a Director Withdrawal, simply navigate to the ‘Pay Yourself’ tab and then navigate to the ‘Director withdrawals’ sub-tab.
On this page, click ‘New Director withdrawal’, as shown below:
The "New Director Withdrawal" form that you'll be presented with automatically calculates the total amount that’s owed to you as a director. We’ve got you covered by a quick clip below, which can be enlarged by selecting, or if you’d rather follow step-by-step support please continue underneath:
For step-by-step support, please continue below:
Please note: This figure is based on real-time information. Our advice is to always ensure that you’re reconciled up to date beforehand. This amount is made up of the director's salary and any dividends recorded for the director, as well as any expenses that the director has paid for personally.
Once you've reconciled to ensure up to date figures, you should check the "total amount owed to" before proceeding with any withdrawals of business funds.
You’ll then just need to enter the ‘Withdrawal date’, ‘Withdrawal amount’, ‘Payment method’ and 'Company bank account':
Clicking on ‘Save director withdrawal’ will then take you back to the list of director withdrawals and will also confirm that your withdrawal has been created and saved in Crunch.
Trying to pay a ‘Director Dividend’?
‘Director Dividends’ are recorded separately. They need to be logged correctly, and accurately, or it could cause problems. Please see here for guidance.
Trying to pay a ‘Shareholder Dividend’?
‘Shareholder Dividends’ are recorded differently to ‘Director Dividends’. These need to be logged correctly, and accurately, or it could cause problems. Please see here for guidance.
Do you have a negative ‘Director Loan Account’ balance?
This can, more often than not, be caused by director withdrawals being recorded without the correct dividends issued with them. Please see here for guidance.