The short version: A company director is someone registered at Companies House as responsible for running a limited company. You’re legally responsible for the company’s affairs, including filing accounts and paying the right taxes.
What are your responsibilities?
Directors have to act in the company’s best interests, avoid conflicts of interest, keep proper records, file accounts on time, and make sure tax obligations are met. The rules are set out in the Companies Act.
Can you be a director and shareholder?
Yes. Many small company owners are directors, shareholders, and employees all at once. You might pay yourself through a mix of salary and dividends.
Do directors need to do Self Assessment?
Not always. If your only income is a salary paid through PAYE, you might not need to file a return. But if you receive dividends above your allowance, or have other untaxed income, you’ll need to file.
What about IR35?
If you’re a contractor working through your own limited company, the IR35 rules might apply. These determine whether you’re taxed like an employee or a genuine business.
Running a limited company and want to make sure you’re set up tax efficiently? Let’s have a chat.
