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Sam, Accountant
Category: Tax
Satisfied Customers: 14650
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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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: 10 months ago.
Category: Tax
Expert:  Sam replied 10 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 10 months ago.


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