Limited Company Self Assessment: What Directors Need for a Smooth Filing

Running a limited company is rewarding—right up until you remember that self assessment is waiting in the wings, armed with deadlines and more acronyms than a daytime quiz show. Even the most organised directors can get caught out if you’re not prepared.

But don’t panic: this guide covers everything directors need to know for a smooth limited company self assessment. From getting your paperwork lined up, to filing online with HM Revenue and customs (HMRC), to dodging penalties and (most importantly) making the most of every tax relief and allowance. Let’s turn tax time from a headache into a humblebrag on your director CV.

Who needs to file a limited company self assessment?

If you’re a director of a limited company, congratulations—you’ve unlocked a whole new level of paperwork. Most company directors need to file a self assessment tax return (that’s your personal tax return) each year, even if your company’s accountant is a spreadsheet superstar.

How is this different from being self-employed or a sole trader?

Sole traders only need to file one tax return covering all their small business profits. As a limited company director, you’re now playing a double act:

• Your company files a corporation tax return for its profits.
• You file a self assessment for your own personal income—like salary, dividends, rental income, capital gains, or any other untaxed cash that’s come your way.

Do you need to file?

You’ll need to submit a self assessment return if you’re a director—even if you don’t take a salary. Exceptions are rare, so it’s best to assume you’re in. And if you have other sources of income (say, a rental flat, a dabble in crypto, or even a director’s loan that needs explaining), it all goes on your personal tax return.

Filing deadlines

The filing deadline for self assessment is 31st January following the end of the tax year—mark it in your calendar (in red, if you’re prone to forgetting). Missing it means penalties, so don’t leave it to the last minute—unless you enjoy living dangerously.

What income and information do directors need to report?

As a director, your self assessment wants to know about far more than your “official” salary. Here’s what HMRC expects you to declare—and how it all adds up to your final tax bill:

1. Your director’s salary (PAYE)

Report everything you paid yourself through the company payroll, as shown on your P60 or payslips. Even if tax has already been taken through PAYE (Pay As You Earn), HMRC still wants it recorded here.

2. Dividends and the dividend allowance

Declare all dividends paid to you as a shareholder, even if they fall within your annual tax-free dividend allowance. Anything over that allowance will be taxed at dividend rates—so have those dividend vouchers handy.

3. Other income sources

Include rental income, interest from savings, investment gains, capital gains (like from selling shares or property), child benefit (if subject to the High Income Child Benefit Charge), and any other untaxed income. If it went into your account, it probably goes on the form.

4. Tax codes, allowances, and thresholds

Your tax code and personal allowance determine how much of your income escapes tax. Any income over those limits—whether salary, dividends, or side hustles—gets taxed at the relevant rate.

5. Tax rates for directors

Directors are taxed like everyone else: income tax on salary, dividend tax rates on dividends, and capital gains tax on (you guessed it) gains. The catch? If your income mix pushes you into a higher tax band, expect a bigger bill.

📌 Pro Tip: Before you start your return, download your company’s payroll and dividend summaries for the year—you’ll save yourself a spreadsheet-induced headache, and catch any surprises before HMRC does.

Getting set up: Registering with HMRC and getting your UTR

Before you can file your self assessment, you need to introduce yourself to HMRC—not just as a company director, but as a taxpayer in your own right. Here’s how to get started (don’t worry, it’s less painful than assembling flat-pack furniture):

1. Register for self assessment

Head to gov.uk and register as soon as you become a director (even if you’re paid through PAYE). You’ll need your national insurance number, company details, and a UK address. If you’ve set up your limited company with Companies House, you’re already halfway there—just don’t assume the paperwork ends there.

2. Wait for your Unique Taxpayer Reference (UTR)

After you register, HMRC will send you a Unique Taxpayer Reference (UTR)—a ten-digit code that’s your tax identity for life (tattoo not required, but you’ll need to keep it safe). You’ll need this for every tax return, so don’t let it vanish into your junk drawer.

3. Activate your online tax account

Once your UTR arrives, follow the steps to set up your online HMRC account. You’ll get an activation code in the post (yes, actual post), and once you’re in, you can file, pay, and check all things tax-related online—no phone queue or tea-fuelled panic required.

Key paperwork and records you’ll need

You know that feeling when you finally find an old receipt right when you need it? Self assessment is all about chasing that feeling. Here’s what directors should keep at their fingertips—no shoeboxes allowed:

1. Proof of your income and dividends

First up, gather every document that proves what you’ve paid yourself—because if there’s a number on your tax return, HMRC wants to see the paperwork to match.

• Payslips: Every slip for salary paid through PAYE.
• Dividend vouchers: Each one for every dividend issued to you—these show the dates and amounts paid.
• Dividend statements: A summary of all dividends for the tax year (some accounting software generates this automatically).
• Annual accounts and confirmation statement: Your official company accounts and the confirmation statement filed with Companies House, so you can double-check dates, periods, and totals.

2. Company details and financial info

Next, get clear on the nuts and bolts of your company—HMRC loves a well-labelled calendar and tidy bank statements.

• Company’s financial year and accounting period: Note the exact dates your company uses, as HMRC and Companies House don’t always speak the same calendar language.
• Company bank statements: For tracking incoming dividends, outgoing salary, and reimbursed expenses.

3. Records of deductions and allowances

Don’t leave money on the table! Have all your expense and allowance receipts ready to back up your claims.

• Expense receipts: Keep every receipt for allowable business expenses—think travel, office supplies, software, and even professional advice.
• Bank interest and pension contributions: Download annual statements for any company or personal accounts, plus pension provider summaries.
• National Insurance contributions: Your personal and company records, so you don’t miss a beat.
• Details of any tax reliefs claimed: Whether for pensions, charitable donations, or investments (like EIS or SEIS), keep those letters and certificates handy.

4. Professional help and tax advice

If you’ve enlisted the help of an accountant or tax adviser, keep a clear paper trail. It’s not just about proving you’re organised—having detailed records and correspondence can be invaluable if HMRC ever comes calling with questions.

Save more than just the invoices: hold on to any written advice, emails, or notes from your adviser, especially if they explain a complicated deduction or decision. These could be your best friend if you ever need to clarify something for HMRC down the line.

5. How to stay organised (and sane)

A little routine goes a long way. Here’s how to make record keeping as painless as possible:

• Use folders—digital or physical—labelled by tax year.
• Back up digital files to the cloud (it’s 2025, after all).
• Set a monthly reminder to scan new receipts and file statements.
• Create a simple checklist and tick things off as you collect them before filing.

Filing your self assessment tax return

Filing as a director doesn’t have to be a marathon—just break it down into a few manageable steps (and reward yourself with a biscuit at the end).

1. Complete the main return: Your director’s details

Start with the essentials. HMRC wants the full picture of your income and tax-deductible spending as a director.

• Log in to your HMRC online account (or use the paper form if you prefer).
• Enter your director’s salary in the Employment section, matching your payslips and P60.
• Report any dividend income in the Dividends section using your vouchers and statements.
• Add other untaxed income such as freelance work, investment interest, or small side hustles.
• Claim allowable expenses where prompted (travel, office supplies, professional fees, etc.).

2. Attach supplementary pages for other income

If your income streams go beyond the basics, you’ll need to add a few extra sections to your return.

• Capital gains (sold shares, property, or investments for a profit).
• Rental income (letting out a flat or holiday home).
• Foreign income, partnerships, or other niche cases—add only what applies to you.

3. Filing online vs. paper: Why online wins

HMRC would love you to go digital, and for good reason—it makes your life easier, too.

• Faster, with built-in error checks—the system flags missing info and obvious mistakes.
• Instant confirmation and digital records for your peace of mind.
• Later deadline: Online filing gives you until 31 January (paper returns are due by 31 October).

4. Avoiding common mistakes

Even experienced directors can trip up on the basics, so keep an eye out for these classic pitfalls.

• Double-check that all figures match your paperwork—especially salary, dividends, and allowable expenses.
• Don’t skip supplementary pages if you have other income sources.
• Never guess—if you’re unsure, check the HMRC guidance or get professional advice.

📌 Pro Tip: File early! You’ll avoid the January rush, have plenty of time to fix mistakes, and—best of all—you’ll know exactly what you owe (so no surprise bills just as you’re starting the new year).

Company Tax Return vs director’s self assessment: What’s the difference?

If you’re a company director, you get to enjoy not one, but two sets of tax paperwork—one for your business and one for yourself. Here’s how to keep them straight:

Company Tax Return: For company profits

Think of the company tax return as your business’s own annual report card. It covers everything the company earned and spent during its financial year.

• Filed with Companies House and HMRC: You’ll submit a corporation tax return (CT600) and company accounts for each financial year, not the regular calendar year.
• Based on company profits: This is about what your limited company earned, not your personal income.
• Deadline: File within 12 months of your company’s financial year end, but pay any corporation tax owed within 9 months and one day.

Director’s self assessment: For your personal income

Your self assessment is your own tax story—salary, dividends, and any other personal income.

• Filed with HMRC (not Companies House): This covers your income as a director (and anything else you earned on the side).
• Uses the individual tax year: 6 April to 5 April, not your company’s year end.
• Deadline: Online returns due by 31 January after the tax year ends.

What you need to do (and when to call in the pros)

As a director, it’s your job to make sure both returns are filed and paid on time—even if your accountant handles the nitty gritty.

• For the company: Provide full company accounts, records of expenses, and all financial details to your accountant.
• For yourself: Gather payslips, dividend vouchers, bank statements, and any other proof of personal income or expenses.
• Stay organised: Having everything ready means fewer panicked emails and a smoother ride at filing time.

Remember: two returns, two sets of deadlines, and double the opportunity for snacks when the paperwork is done.

Deadlines, payments, and staying organised

Tax deadlines may not wait for anyone, but you can definitely stay one step ahead. Here’s how to dodge last-minute panic and keep your company (and yourself) penalty-free:

Key tax deadlines for directors

Jot these in your calendar (and maybe set an extra reminder on your phone):

• Tax year ends: 5 April each year (for personal self assessment).
• Self assessment filing deadline: 31 January after the tax year ends (online returns).
• Corporation tax return deadline: 12 months after your company’s financial year ends.
• Corporation tax payment due: 9 months and 1 day after the company year end.
• Confirmation statement: File with Companies House at least once every 12 months—don’t let this one sneak past!

Payments on account and tax planning

For directors with untaxed income (including dividends), you might need to make “payments on account”—advance payments towards next year’s tax bill.

• Payments on account due: 31 January and 31 July each year.
• Plan for your dividend and salary tax: Set aside money throughout the year so you’re not caught short in January.

When to pay National Insurance and income tax

Don’t let these sneak up on you:

• National insurance and income tax (on self assessment): Both are usually due by 31 January, along with your self assessment bill.
• PAYE/NIC for directors on the payroll: These are paid monthly or quarterly through your company’s PAYE scheme.

Penalties for late filing or payment

Nobody likes a penalty—here’s how to avoid them:

• Late filing: £100 fine if you miss the self assessment deadline, with more added the longer you delay.
• Late payment: Interest starts building right away, and further penalties can follow.
• How to stay ahead: Keep all your paperwork organised, check deadlines early, and file as soon as you have everything ready. (Bonus: you get bragging rights for being ahead of the curve.)

📌 Pro Tip: If cash flow is tight or your income varies, set up a separate savings account just for tax. Transfer a percentage of every dividend or payment you receive—when deadlines roll around, you’ll have the tax money ready and avoid scrambling (or borrowing from yourself). Future you will thank you!

How to pay yourself from a limited company (and stay tax efficient)

Getting paid is the fun part—but as a director, it pays to be strategic. Here’s how to keep more of your hard-earned money (and less in the taxman’s pocket):

Salary, dividends, or both?

Directors have more than one way to get paid. Choosing the right mix is key to tax efficiency.

• Director’s salary (PAYE): Paid through payroll, just like any employee. You’ll pay income tax and national insurance, but a modest salary keeps your state pension ticking and can be claimed as a company expense.
• Dividend payments: Paid from company profits after corporation tax. Dividends are taxed at lower rates than salary and don’t trigger national insurance contributions.
• Combination approach: Most directors use a blend—salary up to the personal allowance, then top up with dividends to maximise efficiency.

Why it matters for tax and National Insurance

How you pay yourself changes your overall tax bill, so get familiar with the rules:

• Salary: Subject to income tax and national insurance. The company can claim it as an expense to reduce its corporation tax.
• Dividends: Not subject to national insurance. The first £500 (2025/26) is tax-free thanks to the dividend allowance; the rest is taxed at special dividend rates.

Making the most of allowances and reliefs

Don’t leave money on the table! Here’s how to work the system (legally, of course):

• Personal allowance: Up to £12,570 of salary (for 2025/26) is tax-free if this is your only income.
• Dividend allowance: The first £500 of dividends is tax-free each year.
• Tax relief: Salary payments lower your company’s taxable profit, while pension contributions or charitable donations can also trim your tax bill.

📌 Pro Tip: If you want to stay tax-efficient year after year, review your salary and dividend mix every April—tax bands and allowances change regularly, so a quick tweak to your pay structure can mean hundreds (or thousands) saved with almost zero extra effort.

How to stay compliant (without losing your sanity)

Staying on top of your tax as a director doesn’t have to feel like another full-time job. Here’s how to make compliance easy:

• Know when to get help: If your finances get messy or HMRC comes calling, a good accountant can save you money and sleepless nights.
• Keep records fresh: Log income, expenses, and dividends as you go. Set digital reminders—future you will be grateful.
• Check before you click: Always review all sources of income and your numbers before filing. One missed dividend or typo can mean an HMRC headache.
• Stay ahead of deadlines: Use a checklist or calendar alerts so nothing slips through the cracks. A little prep beats a last-minute scramble every time.

Limited company self assessment—sorted!

Staying on top of your self assessment means fewer headaches, less panic, and a happier bottom line. Keep your records in shape, use the tools at your disposal, and never hesitate to call for backup if you need it. You’re the director—run your taxes like you run your business: smart and slightly smug.

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