Five ways female business owners can get their own finances on track in the UK

‍Running your own business as a female entrepreneur in the UK can be incredibly rewarding, but it often comes with added financial pressures — particularly if you are balancing business ownership with family responsibilities.

‍Women who are self-employed or run their own companies face unique financial challenges, from managing cash flow and tax planning to pension contributions and long-term security. Below are five practical financial planning tips for female entrepreneurs to help you take control of your finances and plan for the future.

‍ 1. Create a financial plan:

‍ ‍Many women are put off of the idea of running their own business due to also having to juggle childcare commitments or potentially having to care for elderly family members.

‍ ‍A financial plan helps female business owners to:‍

• Set clear short- and long-term financial goals

• Track income, spending, and savings

• Adjust plans as personal or business circumstances change

‍ ‍At Borealis Financial Planning, our clients receive regular review meetings to monitor if their financial plans are on track – this is particularly important for financial entrepreneurs who are typically short on time and likely to have complex financial planning needs.

‍ 2. Separate business and personal finances:

‍ Keeping your business finances separate from personal finances is essential for self-employed women and company directors.

‍ ‍This means:‍ ‍

• Using separate bank accounts

• Keeping clear financial records

• Avoiding mixing personal and business expenses

‍ ‍Separating finances makes it easier to:‍ ‍

• Complete your tax return accurately

• Track business profitability

• Stay aligned with both personal and business financial goals

‍ ‍Having boundaries between business and personal expenses will make it easier for you to prepare your tax return each year and also to calculate business expenditure and income.

‍3. Review your pension:

‍Planning for retirement is essential for female entrepreneurs to ensure long-term financial security and independence. When you are self-employed, you do not benefit from the governments auto-enrolment scheme where your employer has to set up a pension for you.

‍ Therefore, you are in complete control over your own retirement saving.

‍ ‍At Borealis Financial Planning, we can help you to set up a pension that you can save into on a monthly basis or you can contribute ad-hoc lump sums while benefiting from tax relief on money you put in.

‍ If you have a limited company, then the most tax-efficient way to extract some of the profits from the company is to pay them into your pension so you can benefit from tax relief of up to 45%. This means for additional rate taxpayers, a £100 contribution to their pension only costs £55. Any tax relief over the basic rate must be claimed via your annual tax return.

HMRC usually allows pension contributions to be deducted from profits for tax purposes which reduces your companies taxable earnings so your company doesn’t have to pay tax on money that is paid straight into your pension.

You can invest up to £60,000 per tax year into your pension or up to 100% of your annual earnings, whichever is lower. You may also be able to carry forward any unused pension allowance for the last three years.

A financial adviser at Borealis Financial Planning can help you to determine your retirement income goals calculate how much you need to save each year to achieve them.

Book a no-obligation meeting now

Investments can rise and fall in value, so returns aren’t guaranteed. Over shorter periods, these fluctuations mean you could get back less than you invest. Many people invest for the longer term because investments have historically offered higher long term returns than cash savings — but outcomes will always depend on time, markets and individual circumstances. 
Tax treatment depends on individual circumstances and may change over time. Where tax benefits apply, their value will vary based on your personal position and the rules in force.

4: Use your business to pay for protection policies

‍ ‍Safeguarding your assets and mitigating risks is essential for protecting the financial future of yourself, your business and your family.  

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You should regularly review your protection policies, including:‍

• Life insurance

• Critical illness cover

• Health insurance

‍ ‍In many cases life insurance premiums can be treated as a business expense with HMRC. This means that life insurance costs can be deductible through your tax return if you own a limited company or are self-employed.

‍5: Consider your succession planning

‍ ‍You may have only recently started your business and be a long way off retirement. However, it is important to consider what you eventually want to happen to your business when you retire. Succession planning can form part of inheritance tax planning as businesses get relief from inheritance tax. Inheritance tax is up to 40% of the value of your estate over the nil rate band of £325,000.

This is a complex area, a financial adviser at Borealis Financial Planning can help you with inheritance tax planning.

‍ Book a no-obligation meeting now

‍Get your finances on track now

‍ Getting your finances on track as a female entrepreneur requires proactive planning and strategic decision-making.

‍ ‍A financial adviser at Borealis Financial Planning can help you to develop a comprehensive financial plan and help you to plan for your financial future.

Book a no-obligation meeting now or call us on 0117 456 5921.

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‍ SJP Approved 20/05/2026‍ ‍