Do I need to register for Self Assessment if I run a Ltd company in the UK?
Company directors and owners can withdraw money from a limited company in several ways, such as earning a salary, claiming expenses, or receiving dividends from their shares. While salary is taxed through PAYE, other forms of income must be declared and taxed through Self Assessment. As a result, most directors and company owners will need to register for Self Assessment.
This article explores when directors and company owners are required to register for Self Assessment, situations where it may not be necessary, and the registration process. It also covers how to complete a tax return, deadlines to meet, and the tax obligations associated with Self Assessment.
Self Assessment requirements for company directors and shareholders
Most individuals who set up and manage their own companies opt to pay themselves a director’s salary. This income is processed through the company’s payroll and is subject to Income Tax and National Insurance contributions at source, via HMRC’s Pay As You Earn (PAYE) system.
In addition to a salary, the majority of company owners (shareholders) also claim expenses and draw dividends. Some may also receive taxable benefits or take out a director’s loan from the company. Unlike salary, these types of income are not taxed through payroll and PAYE. As a result, the individual is responsible for declaring and paying tax on these earnings through Self Assessment.
To meet their tax obligations, director-shareholders must file a Self Assessment tax return after the end of each tax year and pay any additional tax owed directly to HMRC.
Below, we’ll explore when company owners need to register for Self Assessment and the circumstances where it may not be required.
When you don’t need to register for Self Assessment
You are not required to register for Self Assessment if your salary is the only income you receive from your company, and it is taxed through PAYE without any additional untaxed income or benefits from other sources. The sole exception is if your annual salary exceeds £150,000.
When you must register for Self Assessment
If you receive other forms of taxable income or benefits in addition to – or instead of – a director’s salary, you will likely need to register for Self Assessment.
Taxable income that must be declared through Self Assessment includes:
- Dividend income over £10,000 annually.
- Reimbursed expenses for allowable costs.
- Director’s loans.
- Taxable benefits, such as a company car.
- Income from savings or investments, including interest from savings accounts, bare trusts, or interest in possession trusts.
- Earnings from UK property or land.
- Pension income or charges.
- Child Benefit payments (if you or your partner earn more than £60,000 annually).
- Income from outside the UK, such as foreign pensions or investments.
Additionally, you must register if:
- Your total income for the tax year exceeds £150,000, even if taxed through PAYE.
- You are an off-payroll worker (contractor) with a Student Loan repayment obligation.
If you’re unsure, you can use HMRC’s online Self Assessment tool to determine whether you need to register and file a tax return.
Dividend Income Under £10,000
All shareholders are entitled to a tax-free dividend allowance. For the 2024/25 tax year, this allowance is £500.
- If your annual dividend income is £500 or less, you do not need to report it through Self Assessment.
- If your dividend income falls between £501 and £10,000, you can request HMRC to adjust your tax code. This allows you to pay tax on your dividends through your wages rather than filing a Self Assessment tax return. This option is ideal if your dividend income is modest and you have no other untaxed earnings to report.
How to register for Self Assessment
If you need to register for Self Assessment, it’s essential to do so promptly after establishing your limited company. The process is simple and can be completed online.
Registration Deadline
You must register for Self Assessment by 5 October following the end of the tax year in which you earned untaxed income.
For example:
If you need to report untaxed income for the 2024/25 tax year (which ends on 5 April 2025), you must register by 5 October 2025.
Timely registration ensures you can meet your filing obligations and avoid potential penalties.
Registering for Self Assessment Online
To register for Self Assessment online, you’ll need a Government Gateway user ID and password. If you don’t already have a user ID, click ‘Create sign-in details’ on the Government Gateway sign-in page and follow the instructions.
Steps to Register
- Log In
Sign in to the Government Gateway with your user ID and password. - Complete the Registration Form
Fill out the form with the following details:- Full name
- Any previous name (and the date it was changed)
- UK National Insurance number (if applicable)
- Date of birth
- Current home address (this can be outside the UK)
- Date you moved to your current address
- Daytime telephone number
- Email address
- Reason for completing a tax return – select all that apply
- Date(s) you received untaxed income
- Submit the Form
After completing the form, click ‘Next’ to review your details. If you spot any errors, go back to make corrections. Once satisfied, click ‘Submit’ – and you’re done!
What happens next?
- Activation Code
Within approximately 7 working days (or 21 days if abroad), you’ll receive an activation code in the post. Use this code to sign in to your new personal tax account via Government Gateway and activate your Self Assessment service. - Unique Taxpayer Reference (UTR)
HMRC will send you a letter with your Unique Taxpayer Reference (UTR). This typically arrives within 15 working days (or 21 days if abroad). Alternatively, you can find your UTR sooner by logging in to your tax account or using the HMRC app.
Important: Keep your UTR safe. It’s a lifetime reference number required for all Self Assessment dealings. Note that this UTR is personal and different from your company’s UTR.
Alternative Registration Method
If you cannot register online, you can complete and print form SA1 with the same information listed above. Post it to HMRC at the address provided on the form.
Submitting a Self Assessment tax return
To report your taxable income and calculate the tax owed on your additional earnings, you must submit a Self Assessment tax return to HMRC after the end of each tax year.
If you file your return online, the deadline is 31 January, giving you nearly 10 months to complete and submit it after the tax year concludes.
HMRC will use the details in your tax return to calculate your tax liability and send you an official tax bill. Additionally, your tax liability will be displayed at the end of the tax return process, so you’ll know how much you owe as soon as you file.
File your tax return online
You can complete and submit your Self Assessment tax return online through your personal tax account using form SA100 (the main return) and any necessary supplementary forms. To get started, you will need the following information:
- Personal Unique Taxpayer Reference (UTR)
- National Insurance number
- Date of birth
- Phone number
- Details of untaxed income (e.g., dividends)
- Information on taxed earnings received through PAYE (e.g., director’s salary)
- Records of any expenses and taxable benefits
- Contributions made to personal pensions or charities
- Details of any Student Loan or Postgraduate Loan repayments
The process begins by entering your personal details and answering a series of questions to determine which sections and supplementary forms need to be completed.
Next, you will fill in the relevant sections, providing details of various income types (such as dividends, interest, or pensions), tax reliefs, and Student Loan repayments. Each section is accompanied by explanatory notes to guide you through the process.
If you pay yourself a director’s salary, you will also need to complete supplementary page SA102, which covers your pay, taxable benefits, and employment-related expenses.
For detailed instructions, refer to HMRC’s guidance on how to file your tax return.
Can I send a Self Assessment tax return by post instead?
Some individuals may need to submit their tax returns by post. If you cannot file your Self Assessment return online, contact HMRC to request a paper version of the SA100 tax return.
The deadline for sending a paper return is 31 October, which is nearly 7 months after the tax year ends.
However, if possible, it is recommended to file online. Online filing is quicker, more straightforward, and gives you an additional 3 months to submit your return to HMRC.
Take your time
It’s advisable to register for Self Assessment and submit your tax return well in advance. Procrastinating can lead to forgetting important tasks, and rushing through your return can result in errors and added stress. Additionally, you’ll want to avoid penalties for late filing or payment.
Be sure to keep all necessary paperwork and receipts organized, and gather all required information before starting your tax return. If you file online, you can save your progress and return to finish it later, so there’s no need to complete everything in one go.
How much tax will I pay?
As a company director and shareholder, the tax you pay through Self Assessment depends on the untaxed income you need to report. Some of your income and taxable benefits will be subject to Income Tax and National Insurance contributions, while dividend income is taxed at lower dividend tax rates.
Your total tax liability is based on your combined annual income from all sources. The salary you receive from your company is added to any other taxable income you report on your Self Assessment tax return. This total will determine which of the following Income Tax bands you fall into:
- Basic rate (20%): Applied to earnings between £12,571 and £50,270.
- Higher rate (40%): Applied to earnings between £50,271 and £125,140.
- Additional rate (45%): Applied to earnings over £125,140.
Earnings up to £12,570 are covered by your Personal Allowance, which is the amount you can earn without paying Income Tax.
Dividend income, above the £500 dividend allowance, will be taxed based on your Income Tax band. The current dividend tax rates are:
- 8.75%: Applied to dividend income within the basic rate band.
- 33.75%: Applied to dividend income within the higher rate band.
- 39.35%: Applied to dividend income within the additional rate band.
These lower rates reflect the fact that dividends are paid from company profits that have already been taxed at the Corporation Tax rate.
For those paying Scottish Income Tax, the same dividend rates and thresholds apply to your dividend income.
When do I need to pay my tax bill?
If you owe additional tax through Self Assessment, you must pay your tax bill by 31 January following the end of the tax year. This is also the deadline for submitting your online tax return.
You can choose to pay your tax bill by the deadline, or you can set up a Budget Payment Plan to make weekly or monthly payments toward your total tax liability.
What are the Self Assessment deadlines?
There are key Self Assessment deadlines you must remember. HMRC will notify you when it’s time to file your tax return and pay your tax bill.
Your tax return covers income earned during the previous tax year (April to April), not the previous calendar year (Jan to Dec).
For example, for the 2024/25 tax year (6 April 2024 to 5 April 2025), the deadlines are as follows:
- Register for Self Assessment if you’ve never filed before: 5 October 2025
- Paper tax return filing deadline: 31 October 2025
- Online tax return filing deadline: 31 January 2026
- Tax bill payment deadline: 31 January 2026
Missing any of these deadlines may result in penalties and interest charges on late payments. Be sure to mark these important dates to avoid unexpected issues.
Get Help with Self Assessment
There are several resources available for assistance with Self Assessment, including:
- Contacting HM Revenue and Customs (HMRC) for general queries
- Watching HMRC’s instructional videos and participating in webinars
- Using HMRC’s digital assistant for quick answers
- Receiving technical help for managing your online account
- Reading HMRC’s Self Assessment helpsheets for detailed guidance
- Accessing introductory tax guidance on various types of income
Additionally, it’s a good idea to hire an accountant or tax agent like Startxpress. Professional advice will help you manage your tax affairs efficiently, claim all available allowances and reliefs, and ensure accurate and timely tax return filing.
Do you have any other questions?
In this article, we covered the key requirements for registering for Self Assessment as a director or company owner of a limited company. We also outlined when it’s necessary to register, how to complete the registration and tax return process, and the important deadlines to remember. Ensuring timely and accurate submission of your tax return will help you avoid penalties and meet your tax obligations efficiently.
For more information, visit the Startxpress Help Center and the Startxpress Blog. If you have any questions, feel free to reach out to us at support@startxpress.io!
Related Articles
Was this helpful?
0 / 0