A limited company and the person who owns it are two taxpayers, and each files its own return. The confusion is understandable and expensive: an owner who thinks the company return covers their dividends, or that their personal return covers the company's profit, discovers otherwise at the point HMRC asks. This page separates them.
The company's return
The CT600, with the corporation tax computation and the statutory accounts, filed within twelve months of the end of the accounting period, reporting the company's taxable profit and the tax on it. The tax is paid at nine months and one day. This return says nothing about what the owner took out of the company beyond reporting any director's loan on CT600A, and it is not affected by the owner's personal circumstances.
The director's return
A self assessment return, filed by 31 January after the end of the tax year, reporting salary, dividends, any benefit in kind such as a company car or a beneficial loan, and everything else the individual has. HMRC has said a director is not automatically required to file one simply for being a director, but in practice most owner-managers are, because dividends above the allowance or a benefit in kind bring them into it.
How they interact
In two places only. Salary is deducted in the company's computation and taxed on the director; a dividend is not deductible for the company and is taxed on the director at dividend rates. And a director's loan appears on both: on CT600A as a company charge if it is overdrawn at the year end, and on the director's own return as a benefit in kind if it exceeded £10,000 without interest at the official rate.
Questions people ask about tax returns for limited company
Does a limited company director have to file a personal tax return?
Not automatically for being a director, but most owner-managers do because of dividends above the allowance or a benefit in kind. The company's return does not cover the individual's tax.
Is the ltd tax return the same as the accounts?
No. The return is the CT600 with the computation, and the accounts are filed with it. The accounts also go to Companies House separately, under a different deadline.
Which return reports my dividends?
The director's own self assessment return. Dividends are not deductible for the company and do not reduce its corporation tax.