by Asim Abbas
11 November 2026 
Self Assessment for company directors: do you need to file?
Self Assessment for company directors: do you need to file?
Many people assume every company director must file a Self Assessment return. That isn’t always the case, but most directors who take dividends will need to.
- Being a director doesn’t automatically mean filing a return
- Dividends over £10,000 mean you must file
- Dividend tax rates rise by 2% for basic and higher rate from April 2026
- Company and personal tax are separate returns
Your company files its own Corporation Tax return. Your personal tax return is separate and covers the income you take out of the company.
This guide explains when directors need to file, how dividends are taxed and what changes from April 2026.
Do company directors need a tax return?
You need to file a Self Assessment return if HMRC sends you a notice to file, or if you have income that isn’t fully taxed through PAYE. For most directors, that means dividends.
- Dividends over £10,000: you must file a return
- Dividends between £500 and £10,000: you can ask HMRC to collect the tax through your tax code, or file a return
- Other untaxed income: rent, self-employment or capital gains also mean a return
- Salary only, all through PAYE: you may not need one unless HMRC asks
Check your position with HMRC’s tax return checker.
How dividends are taxed
The first £500 of dividends each year is tax-free. Above that, dividends are taxed at your dividend rate, which depends on which income tax band they fall into.
| Band | 2025/26 | 2026/27 |
|---|---|---|
| Dividend allowance | £500 | £500 |
| Basic rate | 8.75% | 10.75% |
| Higher rate | 33.75% | 35.75% |
| Additional rate | 39.35% | 39.35% |
In 2026/27 you take a £12,570 salary and £40,000 of dividends. Your salary uses your personal allowance. £500 of dividends is tax-free, £37,200 is taxed at 10.75% and £2,300 at 35.75%, so your dividend tax is about £4,821.
Dividend tax calculator
See your dividend tax at the 2026/27 rates.
Director’s loans and benefits
If you’ve borrowed from your company, or it pays for things like a car or medical insurance, these can also affect your personal tax. Benefits appear on a P11D, and some director’s loans are treated as taxable benefits. Our company director tax returns service checks all of this.
Fixed-fee accountancy support
Transparent monthly packages for sole traders, landlords and limited companies. Fixed fees agreed upfront, VAT included.
Get a fixed-fee quoteCall 0161 531 4179Getting the salary and dividend mix right
With employer National Insurance at 15% above £5,000 and higher dividend rates from April 2026, the best mix of salary and dividends has shifted. A small salary often still makes sense to protect your State Pension record, with the rest taken as dividends. The right answer depends on your other income, your company’s profits and your plans. Our business tax planning service models it with your real figures.
Deadlines for directors
Your personal return follows the normal Self Assessment dates: 31 January 2027 for 2025/26. Your company’s Corporation Tax is due nine months and one day after its year end, and its CT600 within 12 months. Our limited company accountants handle both.
What should I do next?
Over £10,000 means you must file.
Rent, gains or self-employment mean a return too.
Higher dividend rates from April 2026 change the maths.
Director returns from £250, VAT included. See the service.
Frequently Asked Questions
Do all company directors have to file a tax return?
No. You need to file if HMRC asks you to or you have untaxed income, such as dividends over £10,000. Directors paid only through PAYE may not need to.
What dividend tax rates apply to my 2025/26 return?
8.75% basic rate, 33.75% higher rate and 39.35% additional rate, after the £500 dividend allowance.
What are the dividend rates from April 2026?
10.75% basic rate and 35.75% higher rate. The additional rate stays at 39.35%.
Is my company’s tax return the same as mine?
No. Your company files a CT600 for Corporation Tax. You file a personal Self Assessment return for your salary, dividends and other income.
Can Wingate do both returns?
Yes. We prepare company accounts, the CT600 and your personal tax return, with fixed fees agreed upfront.
Need help with this? Wingate Accountants offers fixed-fee online accountancy support across the UK. Call 0161 531 4179 or request a quote at wingateaccountants.co.uk.
About the Author
Asim Abbas
I’m Asim Abbas, founder of Wingate Accountants and a Chartered Certified Accountant. I help sole traders, landlords and directors stay on top of their tax with fixed fees and plain-English advice.
