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Directors of limited companies must complete and submit a Self-Assessment tax return to HMRC each year. As your small business owner accountant Wirral we will cover all of your director accounting needs.
This return must include details of the director's income from the company as well as from other sources, as well as any expenses they incur while working for the company.
Additionally, the director must pay any tax due on their income, which is calculated based on their total taxable income. Director self-assessments can be stressful but let us help!
Are you a director of a
business?
Directors and Self-Assessment – what should you do?
So, if you do need to register for Self-Assessment, the first piece of advice is to make sure you do it as soon as possible. This will ensure you are not penalised for not completing a return. We are your small business owner accountants Wirral, experts for self-assessments!
We can promise that doing it as you go along is much easier than scrabbling around on tax deadline day trying to find things. Please have a chat with a professional advisor but do this well before the end of the year as the more time they have to organise things, the better off you’ll be.
Our accountancy packages for limited companies include the cost of Self-Assessment for a director and additional or just a stand-alone director self-assessment return is £150 one-off or £12.50 a month direct debit!
Dividends Accountant
Taking money out of your business can be complicated but it does not have to be with our expert accountants.
We can fully advise you on your best options on a personalised basis.
To the right is the current Dividend Tax Rates for 2022/23.
Income Structure
Directors of limited companies can structure their income in a variety of ways, depending on their individual needs and goals. Generally, it is advisable for directors to take a salary from the company, as this will be subject to PAYE and the director will not be liable for any additional tax or National Insurance payments.
Additionally, directors can take dividends from the company's profits, which can be a more tax-efficient way of taking money from the business. Directors should consult a financial advisor to determine the best way to structure their income from the company.
As a company director, you’re an ‘office holder’ rather than a regular employee. This means minimum wage doesn’t apply and you don’t have to take a salary, but lots of directors do because it gives them a regular source of income.
An important rule to remember though, is that if you do decide to pay yourself a salary for the work you do as a director, the payments might need to go through PAYE. This depends on how much you pay yourself as a salary.
If it’s less than the Lower Earnings Limit (£6,396 in 2022/23) then you won’t need to register. If it’s above the limit, then you will.
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