A company director is a person who is registered at Companies House as the director of a limited company.
The size of the limited company doesn’t matter: you can be a director of a solely-owned, “one-man-band” limited company as well.
Some recent Self Assessment changes that you need to know if you’re a company director:
- you don’t need to file a Self Assessment unless you pay yourself dividends over the Dividend Allowance (£2,000), or if you were paid a directorship from a foreign company (although usually HMRC will ask foreign companies with local staff, including directors, to register for PAYE)
- if you’re the only person in your company, it might be better to switch to sole trader (self-employed). Starting from April 2021, the new IR35 regulations mean that many companies hiring contractors who work through limited companies need to treat them as employees and pay employer’s National Insurance. You can use the CEST status tool to see if this applies to you
- if you close your company, you might be eligible for Entrepreneurs’ Relief.
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