Being a director does not automatically put you into self assessment. What pushes most directors into the system is how they take money out of their company, plus any other income they receive. Directors who receive income from a second job or elsewhere often find self assessment more complicated than expected.

Employees mostly pay income tax through PAYE automatically, but directors often need self assessment to settle everything else. We check your income tax position across salary, dividends and other income before submitting.

Salary And Dividends Are The Two Main Ways Directors Take Money Out Of Their Company

Most company directors pay themselves a small salary and take the rest as dividends. Around 4.09 million taxpayers received dividend income in 2023 to 2024, and UK taxpayers received close to £71.8 billion in dividends that year. Dividends come from your company's profits after Corporation Tax, unlike a salary, a cost to the company before tax.

Receiving dividend payments above the tax-free Dividend Allowance usually means you need to report them. The Dividend Allowance is only £500 for 2026 to 2027, and it is tax-free, but everything above it is not.

Above that allowance, dividend tax is charged at 10.75% for basic rate taxpayers, 35.75% for higher rate taxpayers and 39.35% for additional rate taxpayers. Higher rate taxpayers pay more tax on dividends than basic rate ones.

If dividends are your only income above salary, the sums are simple. You still pay tax on dividends even though the company has already paid Corporation Tax, and we work out exactly what you owe. A small salary up to the tax-free Personal Allowance of £12,570 is usually the starting point.

Directors who receive dividend payments regularly should keep their dividend vouchers safe.

A Few Common Situations That Mean You Need To Register For Self Assessment

If you receive taxable income from any source outside PAYE, you may need to register for self assessment. Many assume they only need to register for self assessment if their accountant tells them to. HMRC expects you to register once you have taxable income that needs reporting, by 5 October following the end of the relevant tax year.

We add up all your taxable income in one place, so nothing is missed. If you are not sure whether you need to register for self assessment, we can check for you.

Any other taxable income, such as savings interest or investment income, should be included on the same return, and you may need to file a self assessment tax return.

Untaxed income is one of the main reasons directors need to file. Common triggers include:

• Dividend payments above your Dividend Allowance and unused Personal Allowance
• Rental income from a property you own personally
• Other untaxed income such as savings interest, foreign income or investment income
• Capital gains from selling shares, property or other assets
• State benefits such as Child Benefit, where a high income charge can apply above £60,000
• Combined PAYE employment income and director income that pushes you over the higher rate threshold

If you are not sure whether you need to file this year, ask us before the deadline. Multiple income sources often mean you need to file a self assessment tax return, not just a simple employed one.

If any of these apply to you, we can register for self assessment on your behalf and get your Unique Taxpayer Reference sorted. To register, HMRC will ask for your National Insurance number and date of birth.

Company Tax Returns, Companies House And Annual Accounts

Your company also has to file its own company tax return with HMRC, separate from your personal self assessment tax return. We can prepare both together.

We can also keep your company accounts and Companies House filings up to date, including the confirmation statement and annual accounts. We can help with company formation too, alongside your current self assessment position.

Making Tax Digital, National Insurance And Benefits In Kind

Making Tax Digital is changing how some self-employed people and landlords report income, and we keep an eye on it. Once registered, you can check your position through your HMRC online account, though most directors let us handle it.

Salary above the threshold also means Class 1 National Insurance for both you and your company. Dividends are not subject to National Insurance, one reason many limited company directors take a mix of salary and dividends. We also make sure any benefits in kind are reported correctly.

Registering And Getting Your Return Filed On Time

If you need to file for the first time, register by 5 October following the end of the tax year in which you first needed to file. Once registered, you will be issued a Unique Taxpayer Reference, which you need to use to file a tax return online or on paper.

The self assessment return, form SA100, needs to be filed by 31 January following the end of the tax year, with any tax owed due the same date. HMRC reported that 737,891 self assessment returns were filed in April 2026 alone, and 86,270 people filed on 6 April 2026, the very first day of the new tax year.

Around 97% of self assessment returns are now filed online, and we file every return we prepare through HMRC's online system rather than a paper return. General guidance is on the HMRC website, but applying it to your own mix of salary, dividends and other income differs, which is where we come in.

Payments On Account And The Personal Allowance Taper

Depending on your income and tax bill, you may also need to make payments on account towards your following year's tax. Most directors pay tax twice a year through payments on account once their bill passes a certain level.

Directors with income above £100,000 often pay more tax than expected once the Personal Allowance tapers away, and it is fully withdrawn once income reaches £125,140. Diarise 31 January well in advance.

We built this service for limited company directors. Most company directors who reach us have tried filing it themselves and decided it was not worth the stress. We understand company accounts, corporation tax and personal self assessment together, because your company and personal tax return are connected. As an experienced accountancy firm, we understand how these areas work together.

Whether you are self-employed on the side, employed elsewhere too, or purely a company director, we make sure everything lands on one self assessment tax return. We take care of salary, dividends, benefits in kind and everything in between, so you only explain your situation once.

You get a named accountant who checks your figures, gives professional advice where useful, and answers your questions in plain English. We keep your personal details secure throughout. We work with company directors anywhere in the UK, by email, phone or video call, and if you need to file a self assessment tax return this year, we make it simple from your first message.