A question asked by my 15 year old son, recently.
A not unreasonable question, asked in a direct way, which required an answer.
Conscious of the average attention span of a teenager, I didn’t want to make the answer too long or too in-depth, such that he didn’t understand the answer.
Well, this is what I said;
Not everyone is employed by a company; some people have their own business and pay themselves but this means that have to tell the Government each year how much they earn, so that they can be taxed correctly.
Also, if you own the company and it has Limited at the end of the name, you need to pay different taxes and send details about the company’s financials to the government.
I do this for people and companies.
Ah ok, says my son but why can’t they do it themselves?
Another good question and some do, I say but sometimes it better to pay someone to do it for you, if that’s what they do best.
I don’t think he harbours any ambitions to become an accountant but I think he at least understands what his dad does now!