How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Sam Your Own Question
Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 14391
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
16196420
Type Your Tax Question Here...
Sam is online now

Is it right that paying last years tax bill is part of this

Customer Question

is it right that paying last years tax bill is part of this years drawings (as director of a ltd company) and there fore bumps up this years drawings, making it taxable again??
Submitted: 5 months ago.
Category: Tax
Expert:  Sam replied 5 months ago.

Hi, Sam here , one of the UK tax Experts here on Just Answer, thank you for your question and I shall reply shortly

Expert:  Sam replied 5 months ago.

HI

If you have paid your personal tax bill from the company profits (rather then from your taxed salary or any taxed dividends) then yes this will be liable to tax either as this years salary/dividend or a directors loan (depending how and from what the payment was made)

But yes tax would be due on this payment one way or another - but its not taxable again - its new money that becomes taxable as paid to you personally or for personal use

Thanks

Sam