Written for the 2025/26 tax year, the return due by 31 January 2027. Checked against GOV.UK on 6 October 2026.
Being a company director does not appear on GOV.UK’s list of people who must send a Self Assessment tax return. Dividends can decide it: GOV.UK says that if your dividend income is over £10,000 you will need to fill in a tax return, and that up to £10,000 can be reported by asking HMRC to update your tax code. You must also send a return if HMRC asks you to. This guide comes from Wainwrights Accountants in Bromborough, Wirral. We work with clients across the UK.
Key figures for dividends in 2025/26
| What | Date or figure | Source |
|---|---|---|
| Dividend allowance, 2025/26 | £500 | GOV.UK: Income Tax rates and allowances |
| Dividend tax rates over the allowance, 2025/26 | 8.75% basic rate, 33.75% higher rate, 39.35% additional rate | GOV.UK: Income Tax rates and allowances |
| Dividend income over £10,000 | Fill in a Self Assessment tax return | GOV.UK: how to report tax on dividends |
| Online tax return for 2025/26 | By 11:59pm on 31 January 2027 | GOV.UK: Self Assessment deadlines |
Do all company directors have to send a tax return?
GOV.UK does not say so. Its list of people who must send a tax return has five items, covering sole traders who earned more than £1,000, partners, people with Capital Gains Tax to pay, people paying the High Income Child Benefit Charge outside PAYE, and off-payroll workers repaying a student or postgraduate loan. Being a director is not an item on that list.
You must send a return if HMRC asks you to. And you may also need to send one if you have untaxed income, where GOV.UK’s examples include dividends.
GOV.UK’s list of a director’s responsibilities is about the company: its records, annual accounts, Company Tax Return and Corporation Tax. None of them is a personal tax return.
When do dividends mean a tax return?
When your dividend income is over £10,000 in the tax year. GOV.UK says you will then need to fill in a Self Assessment tax return, and that if you do not usually send one, you must tell HMRC by 5 October after the end of the tax year in which you received the income.
Up to £10,000, GOV.UK gives two routes:
- if you already send a Self Assessment tax return, you must report any dividend income on it
- if you do not, you must let HMRC know after the end of the tax year and before 5 October, by asking HMRC to update your tax code or by contacting the helpline
With a tax code change, the tax is taken from your wages or pension. You do not need to tell HMRC if your dividends are within the dividend allowance for the tax year.
How are dividends taxed for 2025/26?
You pay tax only on dividend income above the £500 dividend allowance, and none on dividend income that falls within your Personal Allowance. For 2025/26 the rates over the allowance are 8.75% in the basic rate band, 33.75% in the higher rate band and 39.35% in the additional rate band.
To work out your band, GOV.UK says to add your total dividend income to your other income, and that you may pay tax at more than one rate. The rates shown on GOV.UK’s tax on dividends page are for 2026/27 (10.75%, 35.75% and 39.35%), so do not use them for the return due by 31 January 2027.
What if you have not told HMRC about 2025/26 dividends?
Tell HMRC as soon as you can if you have tax to pay on them. For 2025/26 dividends, the date to tell HMRC was 5 October 2026. If your dividends were over £10,000 and you do not usually send a tax return, you need to tell HMRC by registering for Self Assessment, and GOV.UK says you could get a penalty if you tell HMRC after 5 October 2026. See our guide to registering after the 5 October deadline.
If your dividends were £10,000 or less and you do not send a return, contact HMRC.
What paperwork should a director keep for dividends?
A dividend voucher for every payment. GOV.UK says that to pay a dividend you must hold a directors’ meeting to declare it and keep minutes, even if you are the only director. For each dividend payment the company must write up a voucher showing:
- the date
- the company name
- the names of the shareholders being paid a dividend
- the amount of the dividend
The company must give a copy to the recipients and keep one for its records.
What does Wainwrights do for directors, and what does it cost?
A director’s Self Assessment tax return is included in our limited company package, which is from £80 a month + VAT. Prices are indicative: our team confirms the scope and final price. Business prices are subject to turnover not exceeding £150,000.
If you only need a Self Assessment tax return, a personal tax return is from £20 a month + VAT (£24 including VAT). We ask for details of all your income, including payslips and dividend vouchers. To start, get a quote or book a free call.
What do people ask about directors, dividends and tax returns?
I am a director but took no dividends. Do I need a tax return?
Being a director is not on GOV.UK’s list of people who must send one. You must still send a return if HMRC asks you to, or if something else on the list applied to you.
Does my company pay tax on the dividends it pays me?
No. GOV.UK says your company does not need to pay tax on dividend payments, but shareholders may have to pay Income Tax if they are over £500.
Is my director’s salary taxed through Self Assessment?
Tax on it is collected through the company’s payroll. GOV.UK says the company must take Income Tax and National Insurance contributions from your salary payments and pay them to HMRC.
Is the director’s tax return included in your price?
Yes. A director’s Self Assessment tax return is included in the limited company price, from £80 a month + VAT. Prices are indicative: our team confirms the scope and final price. Business prices are subject to turnover not exceeding £150,000.
Dividend rates and reporting rules change from one tax year to the next, and how they apply depends on your own circumstances. This guide is general information, not personal advice. To talk yours through with an accountant in Bromborough, get a quote or book a free call.