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As a Director of a Ltd Company, how many tax returns am I responsible for?

    If you are a director of a Limited Company and are wondering, ‘how many tax returns am I responsible for?’ Then we are hoping to shed some light for you.

    • CT600 (corporation tax return) 
    • SA100 (self-assessment tax return)

    What is a CT600?

    A CT600, which is sometimes referred to as a Company Tax Return, is the filing required to pay tax on your earnings. This tax payment is required for both small businesses and large companies alike.

    What is a SA100?

    An SA100 is the main form that those who are registered for self-assessment must submit to HMRC. This is the form that individuals use to report untaxed income, and claim tax reliefs, allowances and refunds. 

    One of the main ways that you will be able to tell if you have to file a Self-Assessment as a Director of a Limited Company; is how you pay yourself…

    If you pay yourself dividends then you will need to register for Self Assessment. This will tell HMRC about your dividend income, and allow you to pay the right amount of tax on this income.

    Two ways in which a director can be paid;

    • Salary

    As a Director, you do not have to take a salary but most do as this allows a regular stream of income. If you do pay yourself a salary through your company then this might have to be put through PAYE depending on the amount. The Lower Earning Limit is £6,396 in 2022/23, so if your salary falls below this amount then you will not need to register through PAYE but if it is greater then you will.

    • Dividend

    Most often, directors will also be shareholders within the company, as a result of this they are able to receive dividends. Dividends come from the after-tax profits from the business, therefore have already been taxed to a certain extent. This means that Dividend Tax is a lower rate than Income Tax. The tax that is due on dividends is paid through self-assessment.

    If you are a director that needs to register for self-assessment, then we would recommend that you do this sooner rather than later as this will help you avoid possibly being penalised for not completing a return. Ensure that you are saving receipts, invoices etc… These are all things that will help you with your return.

    If you are still unsure about whether or not you need to complete a self-assessment as a director of a limited company, then please get in touch! 

    We would be happy to help in any way that we can, whether that be to answer any questions you might have or to help you file these returns.