1. Check the filing obligation before collecting figures
Being a director does not automatically mean you must file a personal return. Salary taxed through PAYE, dividends, other income and relief claims must be considered together. If HMRC has issued a notice to file, submit the return or obtain its withdrawal where appropriate.
Use our filing requirements guide as a starting point. A company Corporation Tax return does not discharge the director’s personal obligations.
2. Prepare a payment-by-payment reconciliation
For 6 April 2025 to 5 April 2026, list company payments and credits with the date, amount, intended treatment and evidence. Your company accounting year may end on a different date. Do not copy its totals into the personal return without checking the period and tax treatment.
- Salary: P60 or P45, payroll reports and tax deducted.
- Dividends: vouchers, minutes, shareholder records and entries credited to the loan account.
- Expenses and benefits: receipts, reimbursement records, P11D and payroll benefit summaries.
- Loans: opening balance, movements, repayments, interest and closing balance.
A bank transfer description is not enough to establish the treatment. Ask for unexplained entries to be resolved before approving the return.
3. Match dividends to the legal and accounting evidence
Report dividend income on a return where one is being submitted, including amounts covered by the dividend allowance. If you do not already file, HMRC’s reporting route depends on the dividend income and your wider position.
The company needs available distributable profits and proper dividend records. Cash in the bank alone does not establish that a distribution is lawful. Check when a dividend was actually paid or became due and payable, including a valid credit to a director’s loan account; final and interim dividends can have different timing consequences. Do not create backdated minutes to make withdrawals fit a preferred result.
4. Include the new 2025/26 close-company details
The 2025/26 employment pages ask directors of close companies for the company’s name, registration number, dividends from that company and percentage shareholding. The shareholding figure is the highest percentage held during the year, calculated by reference to nominal share capital. Check changes during the year rather than using only the closing holding.
The company-specific dividend entry is additional information: the same income still belongs in the relevant dividend income section. Reconcile the entries so that the dividend is neither omitted nor taxed twice. Send the share register and details of any changes to your adviser.
5. Review benefits and loans separately
Identify whether benefits were reported through payroll or on a P11D. Do not enter payrolled benefits a second time in the non-payrolled benefit boxes. Obtain a clear employer summary if the records do not reconcile.
A loan owed to the company may create a personal beneficial-loan charge and a separate company tax charge. Clearing the balance after year end does not automatically remove a benefit that arose during the year. Retain the running balance, repayment dates and interest evidence. A loan write-off also needs separate review; it is not simply a tax-free cancellation.
6. Add the rest of your personal position
Provide other employments, bank interest, investment dividends, property income, disposals and overseas matters. Separate employer pension funding from personal contributions and identify the relief method before claiming further pension relief. Our pensions and Gift Aid guide explains the evidence needed.
Before filing, review the complete calculation and cash requirement. The normal online filing and payment deadline is 31 January 2027; payments on account may also be due. If registration was missed, act now and check HMRC’s notice for the filing date. A later filing deadline does not automatically defer the payment deadline.
7. Connect the return to better company records
A quarterly review of director balances, payroll, dividends and tax reserves can make the next annual return easier to prepare. Management accounts and cash-flow reporting can help identify gaps while they can still be investigated promptly. Planning a new withdrawal is a separate exercise from reporting a completed tax year.
UA Tax supports company directors in London and across the UK. Personal tax services start from £400 and company packages start from £150 per month, with inclusions agreed upfront. Get in touch with the tax year, company year end and whether you need personal returns, company support or both. We will agree responsibilities and fees before work begins.
For advice on your own circumstances, see our director Self Assessment preparation service and agree the scope before acting.
Official sources and further reading
These primary sources support the framework above. Check the current version before acting because tax law and HMRC guidance can change.