12 things every limited company director should know about reporting additional income via Self Assessment tax returns

You can be fined, prosecuted, or disqualified from being a company director if you fail to meet your legal responsibilities. As well as following the company rules (as set out in its articles of association), limited company…

5 Minute Read

Last Updated: 26th September 2023

You can be fined, prosecuted, or disqualified from being a company director if you fail to meet your legal responsibilities. As well as following the company rules (as set out in its articles of association), limited company directors must ensure that accurate company records are kept, and changes reported. Company accounts and a Corporation Tax return must be filed each year, with any due Corporation Tax paid.


As you may already know, company directors can take money out of a limited company in various ways. Some company directors are paid all their income via the company payroll, which is subject to Income Tax and National Insurance contributions (NICs).

To minimise tax liability, many company directors receive a relatively modest salary via the company payroll (PAYE), just enough to qualify for state benefits, without having to pay Income Tax, because their earnings are below the Personal Allowance threshold. This income is normally supplemented by taxable share dividend payments (the basic rate of 8.25%, higher rate of 33.75% or additional rate of 39.35% are payable after the Dividend Allowance of £1,000 is reached for the 2023/24 tax year).

If you receive £1,000 to £10,000 a year in company share dividends, you can ask HMRC to change your tax code if you don’t want to report this income via a Self Assessment tax return. However, to report company share dividend payments of more than £10,000, you must register for Self Assessment and file a Self Assessment tax return (SA100).

But what if you’re a company director who hasn’t reported share dividend income previously? What if you paid all your salary via the company payroll (PAYE), but you’ve recently started to receive taxable income from other sources?

Here are 12 things you need to know about reporting taxable income via Self Assessment if you’re a company director.


1. Directors are not classed as self-employed; they’re simply required to report additional taxable income via Self Assessment (the system HMRC uses to collect Income Tax).

2. If all your income is taxed at source, you don’t need to register for Self-Assessment and file a return. If HMRC has asked you to submit a Self Assessment tax return, but you have no additional taxable income to report, you can ask for the “notice to file” to be withdrawn.

3. You need to register for Self Assessment and file an SA100 tax return if, for example, you’re a company director and you:

  • earn taxable income from renting/letting out property
  • run a separate part-time, weekend or seasonal sole trader business
  • have earned taxable income from savings, investments, or dividends
  • received taxable payments from a pension
  • received Child Benefit and you or your partner’s annual income was more than £50,000
  • have earned income from abroad that’s taxable in the UK (eg renting out an overseas property while UK domiciled).

If you’re uncertain, HMRC provides an online tool that you can use to check whether you need to file a Self Assessment tax return.


4. You register for Self Assessment online via the Government Gateway platform and then each year you (or someone acting on your behalf) must complete and file your Self Assessment tax return (SA100).

5. If you need to register, you must do so by 5 October following the end of the tax year (5 April) in which you earned the taxable additional income that you need to report. If you’ve registered previously, you just need to sign in to your existing account to file your SA100.

6. When registering for Self Assessment for the first time you’ll need to give your:

  • National Insurance number
  • full name (and any previous names)
  • current address (and when you moved in)
  • date of birth
  • gender
  • phone number and
  • email address.
  • You’ll also be asked whether you’ve registered previously for Self Assessment.

7. HMRC will then create an account for you. You’ll then receive a letter with your Unique Taxpayer Reference (UTR) number within 10 days (21 if you’re based overseas). You’ll need your UTR to file your Self Assessment tax return. You’ll also then receive another letter with an account activation code. Once activated, you can file your tax return online at any time before the deadline.

8. If you need to file a Self Assessment tax return, you do so after the relevant tax year ends on 5 April and you have until the following 31 January to file it online (although it’s best to get it done sooner). There are penalties for late-filing and not reporting taxable income.


9. You use the SA100 (and any supplementary forms required) to detail your earnings. HMRC uses this information, minus any allowances and reliefs you claim, to calculate your Income Tax and any National Insurance liabilities. HMRC will then send you a bill, which you pay directly.

10. If you earn income from renting out property, to reduce your Income Tax bill, you can claim a range of allowable expenses. Seeking professional advice can ensure that you claim all allowances and reliefs to which you’re entitled on all taxable income.

11. You use the SA102 supplementary pages to record your income from employment on your SA100 Tax Return. You must complete one for each employment or directorship, detailing all relevant pay, benefits, and employment expenses you wish to claim.

12. The standard tax-free Personal Allowance is £12,570 (2023/24 tax year).

BandTaxable income    Tax rate
Personal Allowance   Up to £12,5700%
Basic rate £12,571 to £50,27020%
Higher rate£50,271 to £125,14040%
Additional rateOver £125,140

The wages you earn from your company via its payroll will be added to other taxable income to determine your overall Income Tax liability once any allowances and reliefs are taken into account.

As a company directors, we appreciate how little time you have to spare. GoSimpleTax offers you an easier way to complete and file your Self Assessment tax return. And to ensure that your tax return is error-free and that you’re paying no more tax than necessary, why not get your Self Assessment tax return checked by one of our experts?

Trusted by over 20,000 subscribers

You don't need to be an expert to complete your self assessment tax return.

Find Out More

Blog content is for information purposes and over time may become outdated, although we do strive to keep it current. It's written to help you understand your Tax's and is not to be relied upon as professional accounting, tax and legal advice due to differences in everyone's circumstances. For additional help please contact our support team or HMRC.

5 Excellent Reasons to Choose Us

Discover how to make tax returns a doddle...

Find out more

HMRC crackdown to target eBay, Amazon, Airbnb, Fiverr, Uber, Deliveroo and Etsy side hustle income earners

05 Dec 2023

About a quarter of UK adults are believed to have a “side hustle”, whether it’s a secondary job or side business that brings in…

How to spot a Self Assessment tax scam

30 Nov 2023

The threat of being targeted by scammers seems ever present these days. Many of us are frequently targeted, usually by bogus, fraudulent and indeed…

Can sole traders claim tax expenses for Christmas nights out and customer gifts?

09 Nov 2023

Come November and many of us start to think about Christmas. When you’re self-employed, a certain panic can arise over whether you’ll manage to…

How GoSimpleTax Works


Simply register for free with your full name and email address.

Select Your Income

Select the income you receive and follow the hints and tips for potential tax savings.

Validate Your Information

Validate your personal information and submit directly to HMRC to get confirmation in just seconds.


Work Anywhere, With Any Device

Gone are the days of fretting over a calculator surrounded by scraps of paper at the eleventh hour.

GoSimpleTax’s tax return software uses the information you upload in real time to calculate your income and expenditure, working out the tax you owe and sending you helpful notifications when there’s the possibility of a mistake.

Start your free trial

"The software is intuitive and proved very easy to navigate. I found the whole process refreshingly simple. I saved a lot of money too!"

Steve J.

Ordained Presbyter

"Easy to use and value for money. Everything you need to do your tax."

Gordon J.

Self Employed

"It fills in all the forms and sends them to the Inland Revenue. Not expensive either. Takes the stress out of doing your tax return online."

Ross G.

Team Rector

5 reasons to use GoSimpleTax >