Last updated: 14 October 2026
Does a director with no income need to file a Self Assessment return?
Not just because they’re a director. Since the 2013/14 tax year, HMRC no longer requires every company director to file a return. If you take no salary, dividends or other income from the company, and have no other untaxed income, you may not need one. But if HMRC has sent you a notice to file, you must file it or ask HMRC to withdraw it before the deadline. Otherwise, a £100 late filing penalty applies even if no tax is due.
When a director does need a return
| Situation | Return needed? |
| Salary taxed under PAYE only | Usually no; since 2023/24 this applies even over £150,000 |
| Dividends over £10,000 a year | Yes |
| Dividends of £10,000 or less, all within the £500 allowance | No |
| Dividends of £10,000 or less and over £500, but tax due | Tell HMRC; it may collect through your code |
| Untaxed income such as rent or self-employment | Yes |
| Capital gains above the exempt amount | Yes |
| High Income Child Benefit Charge | Yes, unless paid through PAYE |
| HMRC has issued a notice to file | Yes, unless withdrawn |
Asking HMRC to withdraw a notice
If you don’t need to file, contact HMRC before 31 January to ask it to withdraw the notice. HMRC can cancel the return and any penalty if it agrees there was no need for one.
Example
Sarah is a director of her husband’s company, holds no shares and takes no pay. In 2026/27, her only income is £18,000 salary from another job under PAYE. She doesn’t need to file a return, and if HMRC sends a notice, she can ask for it to be withdrawn. Her husband, who takes £40,000 in dividends, must file one.
Directors and the dividend rates
For 2026/27, dividends above the £500 allowance are taxed at 10.75% in the basic rate band, 35.75% in the higher rate band and 39.35% above that. Directors who take dividends usually need to file, because there’s no PAYE on dividends.
Directors’ identity verification
Separately from tax, all directors must now verify their identity with Companies House. This is a company law requirement, not a tax one, and applies even if you have no income from the company.
Expenses paid by the company
If the company reimburses your travel or other business costs, you don’t usually need a return just for that, as genuine business expenses are exempt. Taxable benefits, such as private medical insurance, are reported by the company on a P11D or through payroll.
Keep records anyway
Even if you don’t need to file, keep a record of any loans, expenses and benefits from the company. An overdrawn loan account or company benefits can create a tax charge or a reporting duty.
Frequently asked questions
Do I need to register for Self Assessment as a new director?
Only if you have income that requires a return.
What if I’ve filed in the past?
HMRC may keep sending notices; ask it to close your record if no longer needed.
Can a late filing penalty be cancelled?
Yes, if no return was needed and HMRC agrees to withdraw the notice.
Does a dormant company director need a return?
Not just for that role.
Related: registering for Self Assessment, the director’s loan tax charge and two directors’ loan accounts.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with director Self Assessment. See our limited company accountants service, or contact us for a free, no-obligation quote.
This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 14 October 2026. It is not personal advice, so speak to an accountant about your own situation.
