Introduction
As a UK limited company director, you have a range of obligations to HMRC that go beyond simply paying your personal tax. Understanding what's required — and when — is essential for keeping your company compliant and avoiding penalties. Here's a clear overview of what every UK company director needs to know about HMRC.
Corporation Tax
Your limited company pays Corporation Tax on its taxable profits. The current main rate of Corporation Tax is 25% for companies with profits over £250,000, with a small profits rate of 19% for companies with profits up to £50,000, and marginal relief for profits in between.
You must register for Corporation Tax within three months of starting to trade. Your company's Corporation Tax return (CT600) must be filed with HMRC within 12 months of the end of your accounting period, and any tax owed must be paid within nine months and one day of the end of your accounting period. These are separate deadlines — the payment deadline is earlier than the filing deadline.
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PAYE and National Insurance
If your company pays salaries — including to you as a director — you must register as an employer with HMRC and operate PAYE (Pay As You Earn). This means deducting Income Tax and National Insurance from salaries before they're paid, and paying those deductions to HMRC, typically monthly or quarterly.
Many directors take a combination of a small salary (below the National Insurance threshold) and dividends, which can be tax-efficient. However, the rules around director remuneration are complex, and it's advisable to take accountancy advice to ensure your approach is both tax-efficient and compliant.
VAT
If your company's VAT-taxable turnover exceeds the VAT registration threshold (currently £90,000), you must register for VAT. Once registered, you must charge VAT on your taxable supplies, submit VAT returns (usually quarterly), and pay any VAT owed to HMRC.
You can also choose to register for VAT voluntarily if your turnover is below the threshold — this can be beneficial if you have significant VAT-able costs that you want to reclaim.
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Self Assessment
As a company director, you'll almost certainly need to complete a personal Self Assessment tax return each year, even if all your income comes through PAYE. This is because directors are required to report their income and tax position to HMRC annually. The deadline for online Self Assessment returns is 31 January following the end of the tax year.
Dividends
If you take dividends from your company, these must be declared on your Self Assessment tax return. Dividends are taxed at different rates to salary income — currently 8.75% for basic rate taxpayers, 33.75% for higher rate taxpayers, and 39.35% for additional rate taxpayers, after the dividend allowance.
HMRC Correspondence
HMRC communicates primarily by post. Official letters, tax notices, penalty warnings, and compliance checks are all sent by post to your registered address. It's essential that your registered office address is reliable and that correspondence is monitored and forwarded to you promptly. Missing an HMRC letter is not an acceptable reason for a late response or missed deadline.
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Keeping Accurate Records
HMRC requires companies to keep accurate financial records for at least six years. This includes invoices, receipts, bank statements, payroll records, and VAT records. Good record-keeping makes tax returns easier, reduces the risk of errors, and protects you in the event of an HMRC enquiry.
Conclusion
Your HMRC obligations as a company director are significant — but manageable with the right systems and support in place. Know your deadlines, keep accurate records, ensure your registered address is reliable, and get professional advice when you need it.
Spectre Offices helps UK company directors stay on top of their official correspondence with registered office address services and mail management — so you never miss an important HMRC communication.
Find out how Spectre Offices can support your business compliance today.
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