Self Assessment Tax Return guide for company directors (2026/27)

Traditional employees have income tax deducted from their paychecks before they are paid by their employer.

The Self Assessment system is in place to collect income tax from individuals with earnings that can’t be taxed in this way, such as the self-employed and company directors with untaxed income.

Who needs to submit a tax return?

It may seem a little bit unclear at first who must sign up for and pay tax via a Self Assessment Tax Return (SATR), but it’s actually quite simple.

If you were self-employed as a sole trader and earned more than £1,000 (before deducting allowable expenses) in the last tax year, you’ll definitely need to register.

The same goes for those who had untaxed income, such as rental income, tips, commissions, savings, investments, dividends, or foreign income.

For full current criteria, read the official HMRC guidance.

You may also need to consider if you had to pay Capital Gains Tax, the High Income Child Benefit Charge (if not collected through PAYE), or other specific circumstances.

People who need to claim certain tax reliefs may also need to file a return.

Being a company director does not automatically mean you have to submit a Self Assessment return. However, many directors do need to file one because they receive dividends or have other untaxed income in addition to their salary.

If you’re unsure, you can use this handy online tool on the GOV.UK website, which will determine whether or not you need to submit a SATR.

New reporting requirements for close company directors

From the 2025/26 tax return onwards, directors of close companies who are required to submit a Self Assessment return must provide some additional information.

This includes the company’s name and registered number, the amount of dividend income received from the company during the tax year (which may be zero), and the highest percentage of the company’s share capital held by the director during the year.

Most small owner-managed limited companies are close companies, so this is particularly relevant to our readers.

What are the self assessment deadlines?

When it comes to your Self Assessment tax return, there are a number of crucial deadlines you must meet in order to avoid a fine.

Tax years operate differently from calendar years. The 2025/26 tax year began on 6 April 2025 and ended on 5 April 2026, and if you earned any untaxed income during this period or met other criteria, you may need to settle your tax liability via Self Assessment.

If you’re registering as self-employed or have to send a tax return for any reason, you need to register by 5 October 2026 (for the 2025/26 tax year) if you have not previously registered or otherwise need to notify HMRC. This process can take a few days, so it’s wise to do it well in advance.

Any tax returns filed on paper and posted to HMRC must normally be received by midnight on 31 October 2026, while online tax returns must be submitted by 31 January 2027.

This is also the date you need to settle the bill and pay your tax due (the balancing payment).

Find out more about tax return deadlines here.

Many people also need to make payments on account – advance payments towards the next year’s tax bill, usually in two instalments due on 31 January and 31 July.

You will not normally have to make payments on account if your previous year’s Self Assessment tax bill was less than £1,000, or if more than 80% of the tax you owed was already collected outside Self Assessment.

This is common for company directors and the self-employed. Read our guide to payments on account.

How to register

You can register online via the Government Gateway: GOV.UK Self Assessment registration.

However, before you can submit your numbers for the tax year in question, you must already have received a Unique Taxpayer Reference (UTR).

Given that the deadline for submitting your SATR is 31 January each year, you are strongly advised not to leave signing up for the online service until the last minute, as it may take time for your UTR to arrive or for your account to be set up.

Using an accountant to submit your tax return

If the type of income you received during the tax year is fairly simple (just salary and dividends, perhaps), you may find HMRC’s online submission tool simple enough.

But if you have received income from multiple sources or have complex tax arrangements, you may prefer to outsource the submission to an accountant.

Most limited company accountants will file your personal tax return for a one-off fee (typically between £100 and £200, plus VAT).

This may provide peace of mind that your tax calculations are correct, and minimise the chance of errors.

Bear in mind, however, that the cost of preparing your personal Self Assessment return is a personal expense rather than a Corporation Tax deduction for your company. If the company pays the personal cost on your behalf, there may also be tax or benefit-in-kind consequences.

Useful tips to remain stress-free

The best thing you can do to avoid stress at tax return time is to plan in advance and submit your SATR as early as possible (ideally before the 31 January deadline).

That way, you won’t be left panicking when the deadline date is looming, when you should be concentrating on running your company.

You’ll be liable for an initial £100 penalty if your SATR is submitted late, and you will be charged interest if you also pay your tax late.

These penalties become more severe over time.

It is also a good idea to keep all of your tax records in a safe place for obvious reasons, including details of your salary (payslips, P60), dividend vouchers, bank and investment statements, and details of any benefits you received during the tax year, including child benefit.