Do directors need to fill in self assessment forms?

Do directors need to fill in self assessment forms?

Advice, Company Directors, Limited company, Self-assessment

There is often confusion around whether directors need to fill in self assessment forms. The simple answer is it depends!

That may not appear to be helpful, but it really does depend on whether all your income is taxed at source (PAYE) or you are paid any dividends or have various income streams.

And there are other conditions that may result in HMRC requesting that you fill in a self assessment form. Here, we’ll look at when directors need to fill in SA1 forms.

When directors need to fill in self assessment forms

Some people assume that only the self-employed are required to complete self assessment tax returns.

But that’s not the case. While sole traders who earn more than £1,000 must complete self assessment returns, there’s a whole list of others.

This includes employed people whose income (or their partner’s) tops £50,000 while claiming Child or Bereavement Benefit and directors of limited companies who are paid dividends.

That means the majority of directors must fill in forms. The only exception is if:

  • Your income is taxed at source and you have no other income sources
  • You haven’t received a notice from HMRC to file a return.

What should I do about filing the tax return?

If you are a director of a limited company and must file a self assessment tax return, then it’s pretty straight forward. We’ve fully explained this in an earlier blog, but here is a summary.

You need to:

  • Visit the government’s tax return page
  • Complete the SA1 form
  • Apply for a UTR number
  • Once you receive it, enrol for self assessment using the Government Gateway
  • Apply for an activation code
  • Once received, activate your online account

Deadlines for filing self assessment

Most people file tax returns online these days. The deadline for filing is 31 January, while those filing paper returns must do so three months earlier on the 31 October.

So, if you are filing for the 2021/2022 tax year, then it must be filed by either 31 October 2022 (paper) or 31 January 2023 (digital). Everything you owe must be paid by the 31 January, too.

If you need to complete self assessment tax returns and need information or help, then use the form below to contact us.

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