As you’re about to find out, I really need to get a better understanding of tax.
However, having just had my Self Assessment come through, I had a couple of quick questions that I wanted to run past you guys, before I went back and officially queried what I have been sent.
I’ve been using an accounting firm over the last few years to do my Self Assesments based on secondary passive income that I was generating from a few things I was doing on the side.
Those hustles have dried up though. To the extent that 100% of the revenue in my self assessment comes from my day job - for which I’m paying PAYE. It was the same last year too.
In fact, the only reason that I’m still submitting a Self Assessment is because I’m a Director of a business (more on that in a sec!) and I believe by law that position requires me to do so.
Anyway, I had my Assessment come back from the accountants on Wednesday for final approval.
It all looked fine, apart from the fact they hadn’t indicated on the form that I was a company director.
Last night the amended form came through, with the correction. I’d now been tagged as a director - but I also noticed that the tax I was due to pay had also increased by around 40%
So a couple of questions:
If 100% of my revenue is on PAYE, why have I got any tax to pay anyway?
And secondly, I’m not aware of any tax implications of being a company director, so why is my bill being increased so much seemingly for just having that title?