Company directors have special tax obligations. In the UK, the Self Assessment scheme used by HMRC is for income tax that isn’t paid through Pay As You Earn (PAYE). Directors are usually required to file for Self Assessment if they receive any kind of income that isn’t already taxed.
For example, if you receive dividends, other benefits, or director’s loans, you should consider filing a Self Assessment. If you only have income that is taxed through the PAYE scheme, you won’t have to file a Self Assessment.
In this article, we’ll be explaining how filing Self Assessment works for directors.
Key takeaways
- Limited company directors with any form of untaxed income must register for Self Assessment with HMRC.
- Registration is due by 5 October following the relevant tax year.
- You can file your tax return online by 31 January or submit a paper return by 31 October.
- You must file even if no tax is due, and penalties apply for late submissions.
What is Self Assessment?
Self Assessment is HMRC’s system for collecting Income Tax on income not fully taxed at source. Company directors often have income outside PAYE, so many need to use it.
Here are five situations where you are likely to require Self Assessment:
- You receive dividends from your company – dividend income is not taxed through payroll.
- You have other untaxed income – this includes rental income, freelance income, and certain savings interest.
- You received benefits in kind – this could be something like a company car or private health cover that was not taxed through PAYE.
- Your total taxable income exceeds the personal allowance – for higher earners, the personal allowance may be tapered away even if all income is taxed.
- Your director’s loan account is overdrawn – your account is overdrawn, or you charge or pay interest on loans.
In practice, almost all active directors need to file a tax return, because most take some dividends or other untaxed income.
Key deadlines for directors
For the 2025/26 tax year (6 April 2025 to 5 April 2026), directors who need to file a return must register by 5 October 2026.
Below are the key deadlines to be aware of:
| Task | Deadline |
|---|---|
| Register for Self Assessment (if required) | 5 October 2026 |
| Submit paper tax return | 31 October 2026 |
| Submit online tax return | 31 January 2027 |
| Pay tax you owe | 31 January 2027 |
| First payment on account (if applicable) | 31 January 2027 |
| Second payment on account (if applicable) | 31 July 2027 |
If you register after 5 October, HMRC will normally give you a different filing date, which is three months from the date of registration. ‘Payments on account’ are due if your liability for tax is higher than £1,000, but less than 80% of your liability was paid through PAYE.
How to register for Self Assessment as a company director
Directors must register for Self Assessment tax returns if they receive untaxed income (dividends, interest, a director’s loan, etc.) in addition to salary.
If you need to file, the first step is to register with HMRC for Self Assessment.
Use form SA1 or SA100 online
The easiest way to register is via your HMRC online account using Government Gateway.
What you need
You’ll need your personal details, National Insurance number, and the date you became a director.
Timing
Register as soon as possible after your company is set up or after you first receive income. HMRC will issue your Unique Taxpayer Reference (UTR) by post, which can take up to two weeks.
Registering late
If you miss the 5 October deadline, register immediately. HMRC will usually set a new personal deadline for filing.
Who is exempt from Self Assessment?
If your only income is a salary taxed via PAYE, and your company has not paid you any dividends or loans, you normally don’t need a Self Assessment return. Likewise, if your company is dormant, you aren’t required to register.
PAYE-only directors
If you are paid only through PAYE and have no additional income, you typically do not have to file a tax return.
Dormant companies
If you incorporated a company but never traded or took any money out, you don’t need to register for Self Assessment.
Other minor situations
If you only earn small amounts of interest, dividends, or rental income within your personal tax allowances, you may not need to file, although many directors choose to submit returns anyway.
Do I need to file Self Assessment if no tax is due?
You must file a tax return even if you end up owing no tax. Filing late can incur penalties regardless of whether tax is due.
Penalties for Self Assessment
HMRC imposes penalties for late returns and late payments. For example, a late return incurs an automatic £100 fine, rising to daily penalties and additional charges after 6 and 12 months. Late tax payments incur 5% penalties after 30 days, 6 months, and 12 months. Always aim to register and file on time to avoid these charges.
This table helps you recognise the nature of late payments.
| Issue | What triggers it | Penalty details |
|---|---|---|
| Late filing | Missing the Self Assessment filing deadline | Automatic £100 penalty, even if no tax is owed. Additional penalties apply after 3, 6, and 12 months. |
| Late payment | Tax remains unpaid after 31 January | Penalties of 5% apply after 30 days, 6 months, and 12 months, plus interest on the outstanding amount. |
| Failure to notify | Not registering for Self Assessment when required | HMRC may issue a failure-to-notify penalty, depending on the circumstances. |
Self Assessment registration deadline
You must register with HMRC by 5 October following the end of the tax year in which you received untaxed income. For example, for the 2025/26 tax year (6 April 2025 to 5 April 2026), the registration deadline is 5 October 2026.
Filing deadlines
- Paper tax returns: Must be submitted to HMRC by 31 October following the end of the tax year (which runs from 6 April to 5 April of the following year).
- Online tax returns: If you are filing your self-assessment tax return online, the deadline is extended to 31 January following the end of the tax year.
- Tax payments: Any tax owed for the previous tax year must be paid by 31 January.
Additionally, you may need to make payments on account, which are advance payments towards your next year’s tax bill. These payments are typically due by 31 January and 31 July.
What to include in your director’s Self Assessment tax return
A Self Assessment return includes all income and gains for the year from all sources. Here is a quick list of things to include in your Self Assessment tax return.
- Employment income – your director’s salary and any other earnings shown on your P60 or P45.
- Benefits in kind – any taxable benefits, such as a company car or private medical insurance.
- Dividend income – all dividends paid by your company must be reported, even if they fall within the dividend allowance.
- Director’s loans – outstanding loans or loans written off by the company may need to be declared.
- Tax relief & deductions – allowable expenses, pension contributions, and Gift Aid donations can reduce your tax bill.
- Capital gains – gains from selling assets such as shares or property above the annual exempt amount.
- Student loans or other deductions
- Other income – rental income, interest, freelance income, and investment income must be included where applicable.
- Director’s loans – include any applicable loan repayments or adjustments.
How to report director’s loans through Self Assessment
Reporting director’s loans through Self Assessment can be done via Gov.uk, but you should be aware that different loans require different actions:
Loans over £10,000
Loans exceeding £10,000 at any point in the year are treated as a taxable benefit and must be declared.
- How to file your Self Assessment tax return
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- How to check if HMRC has processed your tax return
For example, if a director borrows £12,000 from the company in May and repays £3,000 in July, it must be reported as a benefit in kind, as the balance exceeded £10,000 during the year.
Low-interest loans
If interest is charged at a rate below the official rate, the difference is treated as a taxable benefit.
For example, if a company lends £8,000 to a director and charges no interest, HMRC treats the interest that would have been charged at the official rate as taxable income for the director.
Loan written off
Any loan written off by the company is treated as income and must be included on your return.
For example, if a director owes £5,000 to the company, and the company later writes off the balance, the £5,000 is treated as income that must be taxed accordingly.
Staying compliant with your Self Assessment
Getting your company set up and compliant from day one is vital. Directors must comply with specific rules when filing their Self Assessment returns
Start your business the right way by registering your company with Rapid Formations.
We have everything a business needs to set up and get started, right away, from company formation to registered offices and corporate services.
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Comments (16)
Hi good morning,
just query about self assessment for director.
If the ltd company year ended is Jan 2022, director’s salaries were taken every month, the director also has two other employment job with two P60 2021/2022. The SA is running from 6th April 2021 to 5th April 2022, so what is the total income need to put in the SA form? total salaries from company is £4,200, dividend is distributed for £2,600, total for two other employment income are £11,000, do i need to add the Feb to 5th April director ‘s salaries when submitting the tax return ? thank you for your help.
Thank you for your kind enquiry, Emmy.
Unfortunately we are unable to provide tax advice as we are not regulated to do so and providing tax advice is a regulated profession.
We would advise speaking to a tax accountant for assistance regarding this matter.
We are sorry we cannot be of more help on this occasion.
Kind regards,
The Rapid Formations Team
Hello
I’m a self-employed freelancer but recently set up a C.I.C for which I am the director. I am not an employee of the company but receive income from the company on a contract basis, alongside my other freelance work. Most of the work I do for the company is on a project basis and not full time. How do I file this on my tax return? Is it as self-employed? Its very confusing
Hi Katy,
Thank you for your kind enquiry.
With regards to how you would fill this in on your tax return, from the scenario you have described, it is likely you would be classified as ‘self-employed’. However, please do not take this as advice – we recommend you liaise with a tax accountant if you are unsure.
We trust this information is of use to you.
Kind regards,
The Rapid Formations Team
Hi, I have a director in my limited company who is not UK resident or tax payer. However, all directors needs to make a self-assesment. He would not be able to get his personal UTR number as he has no NIN. Is this correct? The obligation of making self – assesment does still applies to him?
Many thanks
Hi
Unfortunately, we cannot assist with your question and would advise that you speak to an accountant for advice on this.
Best regards,
Rapid Formations Team
As the sole director of my ltd company, is it obligatory to operate PAYE or I can pay my NI and tax on only dividends I declare on my self assessment?
Dear George
We cannot advise on remuneration from a company, however not every company needs to register for PAYE if the criteria is met by the shareholders for dividend payments to be an option.
Best regards,
Rapid Formations Team
Hi,
I am a director of a Limited company along with one other. We have never received any income from the business. Do we need to register for a Self Assessment each or will this not be required as we have never received any income?
Many thanks in advance,
Alyson
Dear Alyson,
Thank you for your message.
Unfortunately we are not able to advise on taxation matters are we are not accountants. I would suggest you seek professional advice regarding your position.
Best regards,
Rapid Formations Team
When i register for corporation tax does it register me for self assessment also I do I need to register for that as well? Its confusing as it asks if im self employed, sole proprietor or joint partnership when i got to register for self assessment after.
Hi Duncan,
Thanks for getting in touch.
No, you need to register separately for self-assessment. The same goes for VAT and PAYE (if applicable).
As you are a director, use this link to access the required Self-Assessment form: https://www.gov.uk/government/publications/self-assessment-register-for-self-assessment-and-get-a-tax-return-sa1
The registration always seems a bit confusing if you’re a director because you’re not actually ‘self-employed’, even through you’re running your own business.
I hope this helps. Best of luck!
Rachel
but how can I get my utr if they did not give me nin as foreign director in uk?
Hi Robert,
Are you a UK resident? National Insurance Numbers are not issued to non-UK residents.
There is a supplementary page for non-residents in SA tax return: take a look at this guidance and refer to the section ‘Sending a self-assessment tax return’ for more information https://www.gov.uk/tax-uk-income-live-abroad/overview
To speak to HMRC directly about this matter, please contact Self-Assessment general enquiries: https://www.gov.uk/government/organisations/hm-revenue-customs/contact/self-assessment
Best wishes,
Rachel
Where on the self assessment form do details on a directors loan need to be declared (i.e. in which section)? We have a directors loan of more than £10,000 but it is still within the ‘9 months after year end’ period so not due back yet. Where is this declared? Is it considered income? (Did you receive any other UK income, for example, employment lump sums, share schemes, life insurance gains?)
Hi Sarah,
I’m afraid we cannot advice on your situation. Please consult an accountant or tax advisor for guidance.
Best wishes