Self Assessment for non-resident UK company owners
One of the most common questions we receive from overseas customers is whether non-resident UK company owners and directors need to register for Self Assessment. The answer depends on the types of income you earn from your limited company.
This guide outlines when it’s necessary for non-resident UK company owners and directors to register for Self Assessment. It also covers the registration process and explains how to submit a Self Assessment tax return to HM Revenue and Customs (HMRC), the UK tax authority.
This guide is for informational purposes only. We strongly recommend consulting an accountant or tax advisor experienced in non-UK resident tax matters. The rules are complex, and mistakes can easily happen.
Self Assessment for non-UK resident directors and shareholders
Since January 2019, HMRC no longer requires all directors of UK companies to register for Self Assessment and file a tax return annually.
As a non-resident UK company owner or director, you are not legally required to register for Self Assessment if:
- All your income from the company is taxed under Pay As You Earn (PAYE).
- You do not receive any additional untaxed earnings from the company.
For directors who only take a salary taxed through PAYE, registration is unnecessary unless your annual income exceeds £150,000. However, you must register and file a Self Assessment tax return if you receive untaxed UK income, such as:
- Dividends from company shares
- Reimbursement of allowable expenses
- Director’s loans
- Interest or alternative finance receipts from banks or building societies
By completing a Self Assessment tax return (form SA100) and declaring your non-resident status (form SA109), HMRC will treat the untaxed UK income as ‘disregarded income’ for UK tax purposes. The system calculates your tax liability in two ways—one including disregarded income and the other excluding it. Your final liability will be based on the lower of the two calculations.
It is your responsibility to report this UK-derived untaxed income in your country of residence and pay any taxes owed there.
For more details, refer to HMRC’s guidance: Non-residents savings and investment income (Self Assessment helpsheet HS300).
If HMRC asks you to send a tax return
When HMRC issues you a ‘Notice to complete a tax return,’ you are required to comply and submit your Self Assessment tax return.
If you believe the notice was issued in error, you can request that HMRC withdraw it. However, HMRC may decline your request and require you to complete the tax return regardless. In such cases, you must adhere to HMRC’s instructions and file the return.
Register for Self Assessment as a non-resident UK company owner
The registration process for Self Assessment typically follows the same steps for both UK residents and non-residents. As a company owner, you can either register online or complete form SA1 and send it to HMRC by post.
While both options are free, registering online is quicker, more secure, and avoids the hassle of printing and posting forms.
You must register by 5 October following the end of the tax year in which you earn untaxed income. For example, if you receive dividends in the 2024/25 tax year (6 April 2024 to 5 April 2025), the registration deadline is 5 October 2025.
Steps to Register for Self Assessment Online:
Step 1 – Create an HMRC Online Services Account
- Visit HMRC online services, select ‘Sign in’, and then choose ‘Create sign-in details’ if you’re new to Government Gateway.
- Provide your email address and confirm it using the code sent by HMRC.
- Enter your full name, create a password, and save your Government Gateway user ID.
This user ID and password will allow you to access your personal tax account, where you can file tax returns, view your records, and update details.
Step 2 – Sign in to your HMRC Account
- Go to HMRC’s SA1 form.
- Sign in using your Government Gateway user ID and password.
- Access the ‘Registering for Self Assessment and getting a tax return’ form.
Step 3 – Complete the Registration Form
Fill out the form with details such as:
- Personal Information: Full name, previous names (if any), date of birth, and National Insurance number (if applicable).
- Address: Your current address and the date you moved in.
- Contact Details: Phone number and email address.
- Reason for Registration: Select all relevant options, e.g., ‘I am a company director’ and ‘I’ve untaxed income which cannot be coded in PAYE.’
- Taxpayer information: Unique Taxpayer Reference (UTR), if previously registered.
- Income Details: Date you received untaxed income and other pertinent information.
After carefully reviewing your information on the summary page, click ‘Submit’. You can watch HMRC’s instructional video for additional guidance.
Step 4 – Wait for your UTR and Activation Code
HMRC will send:
- A 12-digit activation code for your tax account.
- A 10-digit Unique Taxpayer Reference (UTR), which serves as your identifier for Self Assessment.
These will arrive separately, typically within 21 days if you’re abroad. If delayed, you can check online for an estimated delivery date.
Step 5 – Activate Self Assessment
Once you receive the activation code, sign in to your HMRC account to activate Self Assessment. You can then file your tax return after the tax year ends to declare untaxed income.
Keep your UTR safe – it’s crucial for all Self Assessment-related activities.
Registering for Self Assessment by Post
If you’re unable to register for Self Assessment online, you can do so by post instead.
Steps to Register by Post:
- Fill Out Form SA1:
- Download form SA1 from the HMRC website.
- Enter the required information, mirroring the details mentioned in the online registration process.
- Prepare the Form:
- The form is designed to be completed on-screen. Print it after filling it out.
- Sign and date the form in the designated sections.
- Send the Form to HMRC:
Post the completed form to the following address:
HM Revenue and Customs
NIC&EO
BX9 1AN
Important Notes:
- Ensure the form is completed on-screen; HMRC does not accept handwritten entries except for the signature and date.
- Keep a copy of the form for your records.
Once HMRC processes your registration, they will send your Unique Taxpayer Reference (UTR) and other details required to complete your Self Assessment.
Sending a Self Assessment Tax Return as a Non-Resident UK Company Owner
As a non-resident UK company owner, you are required to submit a Self Assessment tax return if you earn untaxed income through your UK limited company. This includes any income not processed through Pay As You Earn (PAYE).
Filing Deadlines:
- Online Filing: The deadline is 31 January following the end of the tax year.
- Paper Filing: The deadline is 31 October, three months earlier.
For example:
- For income earned in the 2024/25 tax year (6 April 2024 – 5 April 2025), the filing deadlines are:
- 31 October 2025 (for paper returns)
- 31 January 2026 (for online returns)
Filing Your Tax Return Online:
To file your tax return online, you must sign in to your personal tax account on the HMRC website using your Government Gateway ID and password. Then, follow these steps:
Step 1 – Provide Personal Details
- Enter your personal information, such as your full name, date of birth, telephone number, and marital status.
- Your details, including your Unique Taxpayer Reference (UTR) and National Insurance number (if applicable), will be pre-populated, but you should verify them to ensure accuracy.
Step 2 – Tailor Your Return
You will answer a series of questions to ensure that only the relevant sections of the tax return are shown. These questions cover income sources such as employment, self-employment, dividends, rental income, and more. Answer “Yes” or “No” depending on your situation.
- If you are a director, you will need to select “I am a company director” and “I’ve untaxed income that cannot be coded in PAYE.”
- Other questions may pertain to dividend income, rental income, interest, or capital gains.
Step 3 – Fill in the Tax Return This section will guide you through filling out the tax return based on your specific circumstances. The system will show sections like:
- Employment Income (SA102): If you receive a director’s salary, complete this section.
- Foreign Income (SA109): For non-UK residents, this section is crucial to declare your residence status and claim any applicable allowances.
Additional sections will appear if relevant to your tax situation, such as property income or capital gains.
Step 4 – Review Your Tax Return After entering all your information, carefully check your tax return for any mistakes or omissions. If needed, you can amend your entries before submission.
Step 5 – View Your Tax Calculation The system will automatically calculate the tax due, which includes:
- Income Tax and National Insurance contributions
- Tax on dividends
- Capital Gains Tax (if applicable)
- Payments on account (advance payments towards the next year’s tax bill)
You can view and print a detailed breakdown of the calculation.
Step 6 – Save and Submit Your Tax Return Once you are satisfied with your tax return:
- Save a copy for your records.
- Re-enter your Government Gateway credentials to submit your return securely.
- HMRC will send you a confirmation message upon submission, and you can view your filed return in your account within 72 hours.
After Filing:
If you need to make changes after submission, you have up to 12 months from the filing deadline to amend your return. For example, for the 2024/25 tax year, the amendment deadline would be 31 January 2027.
Filing your tax return correctly and on time is essential to ensure compliance and avoid penalties. If you’re unsure about certain aspects, consider seeking advice from a tax professional.
If you need to send your tax return by post
While online filing is the most common method for submitting Self Assessment tax returns, some individuals may need to file by post. If this applies to you, you must request the paper version of the SA100 tax return by calling HMRC.
Mailing Your Paper Tax Return:
For Non-UK Residents:
Send your completed paper tax return to the following address:
HM Revenue and Customs
Benton Park View
Newcastle Upon Tyne
NE98 1ZZ
United Kingdom
Be sure that you allow enough time for your tax return to reach HMRC by the 31 October deadline. If your return arrives after this date, you may incur a late filing penalty.
Paying any tax that you owe
If you owe tax through Self Assessment, you must pay the amount due by 31 January following the end of the tax year. This payment deadline coincides with the filing deadline, making it easier to remember.
For more detailed information, refer to HMRC’s guidance on paying your Self Assessment tax bill.
Do you have any other questions?
In this article, we explained the process of Self Assessment for non-resident UK company owners and directors. It covered who needs to register for Self Assessment, how to complete registration either online or by post, and how to file your tax return. We also highlighted important filing deadlines, such as the 31 January deadline for online submissions, and detailed the steps for filling out your tax return. Additionally, we discussed the payment process and potential penalties for late filing.
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!
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