# Do company directors need to file Self Assessment?

Last updated: 12 February 2026
Category: Self Assessment

**Quick answer:** Usually yes. Most directors need to file Self Assessment if they receive dividends, salary above £100,000, or have other income. HMRC typically writes to new directors to register.

## Detailed explanation

**Directors must file Self Assessment if they have**:
- Dividend income from their company
- Salary over £100,000
- Other untaxed income (rental, investments, etc.)
- Higher rate tax to pay (income over £50,270)
- Child Benefit to repay (income over £60,000)
- Capital gains over the annual exemption

**Directors may NOT need to file if**:
- Only income is PAYE salary below £100,000
- No dividends taken
- No other income sources
- Tax fully collected through PAYE

**What to include in your return**:
- Salary and benefits from your company (from P60/P11D)
- Dividends received (from company records)
- Other employment income
- Rental income
- Interest and savings
- Capital gains
- Pension contributions
- Gift Aid donations

**Common mistake**: Taking dividends but not registering for Self Assessment. HMRC will catch up eventually, and you'll owe tax plus interest.

**Timeline**:
- Register by 5 October following the tax year end
- File online by 31 January
- Pay any tax due by 31 January

Source: HMRC Self Assessment for Directors

## Real-world examples

### Dividend Income and Self Assessment

Sarah, a director, takes a salary of £40,000 and dividends of £20,000 from her limited company. Because she receives dividend income exceeding the dividend allowance (£500 in 2024/25, potentially changing in subsequent years), she's required to file a Self Assessment tax return.

### High Salary Director

John is a director with a salary of £120,000. Although his tax is deducted through PAYE, his earnings exceed £100,000. This means he's legally obligated to file a Self Assessment tax return to account for any adjustments, such as pension contributions or benefits in kind.

### Rental Income and Directorship

Emily is a company director with a modest salary of £30,000 and no dividends. However, she also receives £15,000 annually from rental property income. This additional income, not taxed at source, necessitates the filing of a Self Assessment tax return, even with her PAYE salary.

## Common mistakes to avoid

- Assuming your accountant automatically files your Self Assessment; it's your responsibility to ensure it's filed on time unless specifically agreed otherwise.
- Forgetting to declare dividend income, even if you believe it's below the dividend allowance, as HMRC requires the full amount to be reported.
- Ignoring HMRC's letter prompting you to file Self Assessment, even if you think it's an error; contact them to clarify your situation.
- Failing to keep accurate records of income and expenses related to your director role, making the Self Assessment process difficult and potentially inaccurate.

## Frequently asked questions

### What happens if my salary is *exactly* £100,000?

If your gross salary reaches £100,000, HMRC typically requires you to file a Self Assessment tax return. This is because there might be slight discrepancies or additional taxable benefits that need to be accounted for.

### If I overpay my Self Assessment, how do I get a refund?

HMRC will usually issue a refund automatically if you've overpaid your Self Assessment. You can track the refund's progress through your online HMRC account or by contacting HMRC directly if you don't receive it within a reasonable timeframe (usually a few weeks).

### Can I pay my Self Assessment tax bill directly from my limited company's bank account?

No, Self Assessment tax is a personal liability, so you must pay it from your personal bank account. Paying from your company account could be seen as a benefit in kind and have further tax implications.

### What happens if I'm late filing my Self Assessment due to a genuine reason, like illness?

You can appeal to HMRC against penalties for late filing if you have a reasonable excuse, such as a serious illness or bereavement. Gather evidence to support your claim and submit it to HMRC as soon as possible.

## Practical tips

- Keep a detailed record of all dividend payments you receive throughout the tax year, including the dates and amounts, as this information is crucial for accurate reporting.
- Use accounting software or a spreadsheet to track your income and expenses related to your director role, making it easier to complete your Self Assessment.
- Set up a dedicated savings account for your Self Assessment tax liability to avoid being caught short when the payment deadline approaches.
- Review your prior year's Self Assessment return and calculations to ensure you're not making the same mistakes again.

## Related questions

- [When is my Self Assessment tax return due?](https://accounts-os.com/questions/when-is-my-self-assessment-due)