Do company directors have to file a Self Assessment tax return? Not automatically. A UK director taxed only on a PAYE salary may not need to, but most do because they take dividends over £10,000, receive taxable benefits, have a taxable director’s loan, or have other untaxed income. The 2025/26 online deadline is 31 January 2027.
Many company directors believe that as their salary is paid through PAYE and their company completes their Corporation Tax Return, their personal tax liabilities are automatically dealt with.
Unfortunately, this isn’t always true.
The role of the Director of the Company can be very demanding, and it is crucial to keep your personal tax affairs under control, especially as a shareholder who takes dividends or when you have other income or benefits arising from company arrangements.
It can get complicated when the rules become confused, so you must not treat company money and personal money as one and the same for tax purposes.
This guide to self assessment for directors outlines who must complete a director’s Self Assessment tax return for 2025/26, the information that is required and the tax treatment of various income categories, as well as the important deadlines and penalties.
Do Company Directors Need to File a Self Assessment Tax Return?
Not every company director automatically needs to complete a Self Assessment tax return. Self assessment for directors depends on your income, not your job title.
If you receive only a director’s salary through PAYE and have no other reason to file, you may not need to submit one.
However, you may need to file if:
- You receive dividends over £10,000 in a tax year (between £501 and £10,000, HMRC can usually collect the tax through your tax code).
- You have rental income.
- You receive additional untaxed income.
- You have capital gains that need reporting.
- You are liable for the High Income Child Benefit Charge.
- HMRC has issued you a notice to file.
For example, imagine you’re a director who earns £12,570 a year plus dividends of £25,000 a year. Any income you receive as salary may be taxed through PAYE, but income as dividends must be added to your personal taxable income. Because the dividends exceed £10,000, you must file a return.
Important: If you are told formally by HMRC to file, it would not be appropriate to just ignore the notice, as you feel your income has been taxed already.
You can check your circumstances using the official HMRC Self Assessment guidance.
How Do You Register for Self Assessment as a Director?
If you are required to file a Self Assessment return, but haven’t registered before, you must register with HMRC.
The process of registering for self assessment for directors generally involves:
Step 1: Check whether registration is required.
Give it a quick review to determine if registration is necessary
Step 2: Register with HMRC.
Use the official online registration service. Register for Self Assessment – GOV.UK.
Step 3: Receive your Unique Taxpayer Reference (UTR).
HMRC will give you a unique reference known as a UTR – you’ll need this when managing your Self Assessment account.
Step 4: Activate your online account.
Use HMRC’s guidance to use the online filing service.
Step 5: Prepare your financial information.
Gather your P60, dividend vouchers, bank statements, and other information relating to benefits and so on.
Step 6: Submit your tax return.
Complete the SA100 and the SA102 employment pages and file online by 31 January 2027.
One practical recommendation is to avoid registering at the last minute. Allow enough time for HMRC correspondence and account activation.
What Do Directors Put on a Self Assessment Tax Return?
There are a variety of income categories that may be included on a director’s tax return. Knowing how each is treated will minimise the potential for errors and allow your personal tax position to be reported properly.
Salary and Employment Income
While you are a director of the company, your salary will usually be regarded as income from employment. Your company will typically calculate your Income Tax and National Insurance on your behalf (PAYE). Please use the figures you have in your P60 or other employment documents to report your salary.
Dividends from Your Own Company
Dividends are the amounts of profits that are paid from the company to the shareholders. Unlike salary, dividends are NOT employment income and do not fall under the same tax class as PAYE. Shareholders, however, may have to pay their personal Income Tax on dividends in excess of the applicable allowance.
For 2025/26, the dividend allowance is £500. It stays at £500 in 2026/27, but the basic and higher rates rise from 6 April 2026. The dividend tax rates are:
| Tax band | 2025/26 rate | 2026/27 rate |
| Basic rate | 8.75% | 10.75% |
| Higher rate | 33.75% | 35.75% |
| Additional rate | 39.35% | 39.35% |
The applicable rate is based on the total taxable income. For instance, if a director receives salary income of £15,000 and dividend income of £20,000, then they will need to take both of these income streams into account when determining their tax position. The salary portion of the allocation is deducted from a portion of the bands and the remainder of the bands is applied to the dividends.
Remember that dividends must be legally declared and supported by appropriate company records. Your company should maintain:
- Dividend vouchers.
- Board minutes.
- Shareholder records.
- Evidence of sufficient distributable profits.
You can read more about the rules here: Tax on Dividends – GOV.UK.
How Is a Director’s Loan Reported?
A director’s loan arises when you take money out of the company that is not salary, a dividend, an expense repayment, or money you previously put into the company.
If, for instance, a director makes a transfer of £4,000 from the company bank account to their own personal account but does not add the £4,000 to their salary/dividend account, this will not constitute a dividend or a salary payment.
If the director owes the company money, specific tax rules may apply. Two important considerations are:
- The nine-month repayment rule: The company could be liable to a Section 455 Corporation Tax charge if an overdrawn director’s loan is not repaid within 9 months and 1 day from the end of the company’s Corporation Tax accounting period. The charge is 35.75% for loans made on or after 6 April 2026 and 33.75% for earlier loans.
- Loans exceeding £10,000: If a director or shareholder receives an interest-free or low-interest loan exceeding £10,000 at any point during the tax year, a benefit-in-kind charge may arise. The director may need to report the benefit through Self Assessment.
Benefits in Kind
Benefits in Kind (BiK) are non-cash benefits provided by an employer to an employee or director. Common examples include:
- Company cars.
- Private medical insurance.
- Accommodation.
- Certain interest-free loans.
- Other taxable benefits.
These benefits may create additional personal tax liabilities. For example, if your company gives you a car to use for work as well as private purposes, you might be required to pay tax on this benefit. Depending on the benefit and the applicable rules, your company could have to report the benefit on a P11D or payroll reporting system. Any relevant numbers should be included in your individual tax return if applicable.
Other Income, Gains and Child Benefit Charge
Your Self Assessment return may also need to include income and gains outside your company. These can include:
- Rental income.
- Savings interest.
- Income from another employment.
- Pension income.
- Capital gains.
- Foreign income.
- The High Income Child Benefit Charge.
Likewise, where your adjusted net income is above the appropriate limit, and you and/or your partner are claiming Child Benefit, the High Income Child Benefit Charge can apply. All income sources should be taken into account and not just company income.
Close Company Shareholding Information
There is an important reporting change for directors from the 2025/26 tax year. New information requirements apply to directors who are already required to submit a personal tax return. Where applicable, directors must provide additional details about their directorships and close company shareholdings. This can include:
- Company information.
- The director’s role.
- Dividends received from the close company.
- Percentage shareholding.
A separate employment page may be required for each relevant close company. Importantly, the additional reporting requirements can apply even when a director has received no salary, benefits or dividends from the company. Where the relevant close company reporting boxes apply, zero amounts may need to be entered rather than leaving them blank. This is a detail that directors should discuss with their accountant when preparing their 2025/26 return.
Self Assessment Deadlines for Directors (2025/26 Return)
The 2025/26 tax year runs from 6 April 2025 to 5 April 2026. The important self assessment for deadlines for directors are:
| Requirement | Deadline |
| Register for Self Assessment, where required | 5 October 2026 |
| Submit paper tax return | 31 October 2026 |
| Submit online tax return | 31 January 2027 |
| Pay outstanding tax | 31 January 2027 |
| First payment on account for 2026/27, where applicable | 31 January 2027 |
| Second payment on account for 2026/27, where applicable | 31 July 2027 |
The registration and paper filing deadlines for 2025/26 have passed. If you haven’t registered, do so now and file online.
If you are registering for the first time, allow enough time for HMRC to issue your UTR. You should also remember that your company’s Corporation Tax deadline is separate from your personal Self Assessment deadline.
What Are the Penalties for Missing the Self Assessment Deadline?
HMRC charges separate penalties for filing late and paying late, and the filing penalties apply even if you owe no tax. For the 2025/26 return they start after 31 January 2027.
- 1 day late: £100.
- 3 months late: £10 a day for up to 90 days (maximum £900).
- 6 and 12 months late: £300 or 5% of the tax due, whichever is greater, each time.
- Late payment: 5% of the unpaid tax at 30 days, 6 months and 12 months, plus interest.
Interest on late payment is the Bank of England base rate plus 4% (7.75% from 9 January 2026), so check the current rate on GOV.UK.
How Much Tax Do Directors Pay on Salary and Dividends?
A director’s tax liability depends on their total taxable income, available allowances and the relevant tax rates. For 2025/26, the standard Personal Allowance is £12,570. For England, Wales and Northern Ireland, the main Income Tax bands are:
| Tax band | Taxable income | Rate |
| Personal Allowance | Up to £12,570 | 0% |
| Basic rate | £12,571–£50,270 | 20% |
| Higher rate | £50,271–£125,140 | 40% |
| Additional rate | Above £125,140 | 45% |
Scotland has different Income Tax bands and rates for employment income. Dividend income is taxed separately using the relevant dividend rates.
The Personal Allowance may also be reduced if adjusted net income exceeds £100,000. The most important point is that salary and dividends must be considered together when determining the applicable tax bands.
Worked Example: Director Taking Salary and Dividends
Let’s consider David, who operates a limited company. During 2025/26, he receives:
| Income source | Amount |
| Director’s salary | £12,570 |
| Dividends | £30,000 |
| Total income | £42,570 |
Assuming David has the full Personal Allowance and no other taxable income:
- His salary of £12,570 is covered by his Personal Allowance.
- His first £500 of dividends falls within the dividend allowance.
- The remaining £29,500 is taxable at the basic dividend rate of 8.75%.
Dividend tax: £29,500 × 8.75% = £2,581.25. Therefore, his estimated dividend tax liability is £2,581.25. In 2026/27 the same income would give £29,500 × 10.75% = £3,171.25, which is £590 more.
This example excludes other factors such as National Insurance, pension contributions and any other tax adjustments.
Do Directors Need to Use Making Tax Digital for Income Tax?
Not automatically. Making Tax Digital for Income Tax primarily applies to qualifying sole traders and landlords.
If you receive only salary and dividends from a limited company, you are not automatically required to use MTD simply because your total income exceeds the threshold. MTD applies to self-employment and property income over £50,000 from April 2026, £30,000 from April 2027 and £20,000 from April 2028. Salary and dividends do not count. However, if you also operate a sole trade or receive qualifying property income, you may fall within the MTD requirements.
For example, a director receiving £40,000 in salary and £15,000 in dividends, with no qualifying self-employment or property income, would not enter MTD solely because of those payments. However, a director with an additional sole-trade business generating qualifying income above the applicable threshold may need to comply.
Should You Use an Accountant for Your Director Self Assessment?
You can prepare and submit your own Self Assessment return. However, a director’s tax affairs may involve several different types of income and reporting requirements. An accountant who handles self assessment for directors can help you:
- Determine whether you need to file.
- Report salary and dividends correctly.
- Review director’s loan accounts.
- Identify taxable benefits.
- Check close company reporting requirements.
- Calculate dividend tax.
- Review tax reliefs and allowances.
- Meet HMRC deadlines.
- Plan remuneration more effectively.
How MyIVA Can Help
For company directors, managing personal tax alongside company responsibilities can become time-consuming. MyIVA can support directors with their Self Assessment requirements, helping them understand what needs to be reported and ensuring that relevant information is prepared accurately.
Need help with your director’s Self Assessment return?
MyIVA’s accountants handle self assessment for directors every year: salary and dividends, director’s loan accounts, close company reporting and the 31 January 2027 filing. Get your return prepared accurately and on time.
FAQs: Frequently Asked Questions
Is a director self-employed?
No. A director of a limited company is generally treated as an office holder and employee for tax purposes, not as self-employed simply because they hold a directorship.
Do I need to file if I only take a salary?
Not necessarily. If all your income is correctly taxed through PAYE and you have no other reason to submit a return, you may not need to file. However, you must comply if HMRC has issued a notice to file unless it is formally withdrawn.
Do I need to file if dividends are within the allowance?
If your dividends are within the £500 dividend allowance, you may not need to report them solely because of those dividends. Dividends from £501 to £10,000 can usually be collected through your tax code; over £10,000 you must file. However, other circumstances may require you to submit a return.
Can the company pay my Self Assessment fee?
A company may pay an accountant’s fee for preparing a director’s personal tax return, but the tax treatment needs consideration. The personal element may be treated as a taxable benefit or remuneration rather than an ordinary business expense.
Do both directors file?
Each director has an individual tax position. One director’s filing requirement does not automatically determine whether the other director needs to submit a return.
Does a dormant company director need to file?
Being a director of a dormant company does not automatically require a personal tax return. However, other income or an HMRC notice to file may create an obligation.
Can a non-UK resident director file?
Yes. Non-UK residents can have UK Self Assessment obligations depending on their UK income, residence position and other circumstances.
What new information must close company directors report?
From 2025/26, the SA102 employment pages ask for the company’s name and registered number, dividends received and your highest percentage shareholding during the year. A separate page is needed for each close company, and a £60 penalty can apply if the information is missing.
What salary should a director take, and how does National Insurance affect it?
In 2026/27, employer NI is 15% on salary above £5,000 and employee NI starts at £12,570. A £12,570 salary costs the company £1,135.50 in employer NI, which the £10,500 Employment Allowance can cover unless the director is the only employee paid above £5,000.
Conclusion
Self Assessment for Directors involves more than simply reporting a salary. A personal tax position can change if dividends are received, director’s loans are advanced, benefits in kind are received, rental income is received, and other taxable income is received. Directors should also be mindful of the increased reporting obligations for close company information for the 2025/26 tax year. By preparing ahead of time, keeping up with the records and knowing the deadlines, you can avoid errors and penalties.
MyIVA can assist company directors with their Self Assessment duties, grasp their tax liability and ensure that their personal tax returns are correct.
