As a director you usually have two tax lives: the company's, and your own. Your personal Self Assessment has to handle your salary, your dividends and the dividend tax that comes with them, and get the split right. We file it accurately and tax-efficiently, for one fixed fee.
Director Self-Assessment, UK
Most directors of their own limited company pay themselves through a mix of a modest salary and dividends, and that mix is taxed in a particular way on their personal return. The dividend allowance is now just £500, and dividends above it are taxed at 8.75% in the basic rate band, 33.75% in the higher rate band and 39.35% in the additional rate band. Get the salary and dividend balance right and you minimise the combined tax across you and the company; get it wrong, or simply guess, and you either overpay or store up a problem. Many directors also assume HMRC files for them, it does not, your personal Self Assessment is your responsibility.
Your Tax Help Accountants handles directors' personal returns alongside an understanding of how the company pays you. We declare your salary and dividends correctly, apply the dividend allowance and the right rates, advise on the most efficient salary and dividend split for the year, and calculate your payments on account so there are no January shocks. If we also handle your company accounts the two fit together seamlessly, but we are happy to look after just your personal return. One fixed fee, one accountant, and a return that is right and efficient.
The dividend allowance is just £500, so almost all of a director's dividends are now taxable. Getting the salary and dividend split right for the year is where the real saving is, and it needs deciding deliberately, not discovered at the deadline.
What We Handle
Your director's salary and dividends declared accurately on your personal return, with the dividend allowance and correct rates applied.
We advise on the most tax-efficient balance of salary and dividends for the year, minimising the combined tax across you and your company.
Dividends taxed correctly at 8.75%, 33.75% or 39.35% depending on your band, with the £500 allowance applied and your bill explained in advance.
Rental income, savings interest, a second employment, benefits in kind or a pension, all combined with your director's income into one accurate return.
We calculate your payments on account correctly and reduce them where appropriate, so the January and July demands hold no surprises.
If we also handle your company accounts and corporation tax, your personal and company positions are planned together for the best overall result.
It is a common question. While simply being a director does not automatically require a return, the moment you take dividends, have other untaxed income, or HMRC issues you a notice to file, Self Assessment applies, and that covers most owner-directors. Rather than guess and risk a penalty, we confirm your position and, where you do need to file, handle it properly and efficiently. A quick call settles it.
Recent Client Outcome
A director of his own consultancy company had been paying himself a round salary and taking dividends fairly arbitrarily, then filing his own return and hoping for the best. He had never modelled whether his salary and dividend balance was efficient, and was taking more dividends into the higher rate band than he needed to in the year.
We reviewed how the company paid him alongside his personal position, set a salary that made the most of allowances and National Insurance thresholds, and planned the dividend level to keep more of his income in the lower band while leaving the company's position sound. We then filed his personal return with the dividend allowance and rates applied correctly.
The combined effect across his personal and company tax was a meaningful saving for the year, with no more guesswork at the deadline. He now lets us handle both sides so the salary and dividend plan is set deliberately each year.
Why Clients Choose Us
Director Questions Answered
Free fifteen-minute call. We declare your salary and dividends correctly, advise the most efficient split, and file accurately. Same accountant, start to finish.
Or email info@yourtaxhelp.co.uk, we typically respond within two business hours.
📅 Free consultation calls available weekdays 1pm to 3pm. Pick a slot that suits you.