Self-Assessment Tax Returns for Directors - What You Need to Know
Welcome to the next article in our Accounting & Tax 101 series — short, plain-English guides to help you understand the numbers that matter.
One of the most common surprises for new company directors is discovering that they still need to file a Self-Assessment tax return — even if all their income is received through their company. Here’s why HMRC asks for it, and what it means for you.
Why directors need to file a return
HMRC expects directors to file a Self-Assessment because:
You usually get paid through a mix of salary and dividends, which isn’t taxed in full through PAYE.
Dividends don’t have tax deducted automatically — you pay the tax later through your return.
If you’ve taken pension contributions, benefits (like a company car), or other income, HMRC needs to know about these too.
In short, your return makes sure you’ve paid the right amount of tax on all your income, not just your salary.
What information goes on the return
For most directors, the return includes:
Salary from the company (shown on your P60 or P11D).
Dividends you’ve taken during the year.
Other income (e.g., rental, investments, self-employed income from a side business).
Pension contributions and any reliefs due.
Benefits in kind, if your company provides them.
Key deadlines
31 January – deadline to file the return online and pay any tax due.
31 July – second payment on account (if HMRC requires them).
Miss a deadline? HMRC will charge penalties and interest.
Payments on account
If your tax bill is over £1,000, HMRC may ask you to make advance payments towards next year’s tax — called payments on account. This often catches directors out, because you’re paying not just for last year but also towards the year ahead.
Our advice
Don’t ignore Self-Assessment — it’s not optional for directors. The good news is that once it’s planned for, it doesn’t have to be stressful.
Here at Accounts Action, we prepare director tax returns alongside company accounts, so your salary, dividends, and other income all tie up neatly. That way, you’ll know exactly what’s due — and when.
This article is part of our Accounting & Tax 101 series — short guides to help you understand your accounts without the jargon.
