Tax Blog

27/12/2025

As a Limited Company Director, Do You Need to File a Self-Assessment Every Year?

This is a very common question we hear from company directors in the UK:
“If I’m a Limited Company Director, do I still need to submit a Self-Assessment tax return every year?”

The short answer is: in most cases, yes.
But let’s explain it properly.

Why Limited Company Directors Are Different

A Limited Company is a separate legal entity from you as an individual.
Even though the company files its own Corporation Tax Return, directors are personally responsible for reporting their own income to HMRC.

When a Director MUST File Self-Assessment

You usually need to complete a Self-Assessment if you:

• Take a director’s salary
  
  

• Receive dividends from the company
  
  

• Have any other income (rental income, freelance work, investments, etc.)
  
  

• Are registered with HMRC for Self-Assessment
  
  

In reality, most directors take dividends, which means a Self-Assessment is required every year.

When It May Not Be Required

In rare cases, you may not need to file if:

• You only receive a PAYE salary
  
  

• You have no dividends and no other income
  
  

• HMRC has confirmed you do not need to submit a return
  
  

Even then, it’s important to get professional confirmation, not just assume.

Why This Matters

Missing a required Self-Assessment can lead to:

• Automatic HMRC penalties
  
  

• Interest on unpaid tax
  
  

• Problems with mortgages or credit applications
  
  

• Unnecessary stress later on