Reply To: Drawings


Generally speaking, if a person takes money out of a business, they are to be treated as taking it for their personal use, so it will be (earned) income, in the same way as if they had not it would be part of the profits at the end of the year (and treated as income).
The only way for this not to be so would be if your claimant could show that the money was used for legitimate expenses, and thus would be disregarded. 8)
I would look at it in another way – reg 38 (I think) tells you what to class a legitimate expenses. This is not on that list, so is therefore included. 😉