UK Directors – Your 2025/26 Year-End Tax & Compliance Guide
- mzhanif
- 7 days ago
- 1 min read
Running a limited company in the UK means balancing your role as both a shareholder and employee. As we move towards the 2025/26 year-end, directors should plan ahead to stay compliant and minimise unnecessary tax.
1. Salary and Dividend Planning
Combining a small salary with dividends remains one of the most tax-efficient structures for UK directors.
Optimal salary: £12,570 for 2024/25 (below NIC threshold).
Dividend allowance: Cut to £500, so careful planning matters more than ever.
Dividend tax rates: 8.75%, 33.75%, and 39.35% depending on income bracket.
💡 Tip: Reassess your director payroll monthly to avoid missing National Insurance credits or paying excess tax.
2. Director Loan Accounts
If you’ve borrowed funds from your company, ensure repayment within nine months of year-end to avoid the Section 455 tax (33.75%). Keep accurate bookkeeping entries on all transactions.
3. Key Filing Deadlines
Document | Deadline |
Company Accounts | 9 months after year-end |
Corporation Tax Return (CT600) | 12 months after year-end |
Confirmation Statement | Annually |
P11D (benefits) | 6 July 2025 |
4. Companies House Reform – Digital Identity Checks
From 2026, all UK directors must digitally verify their identity. Prepare now by ensuring Companies House data matches your passport and current address.
5. Plan Ahead for Corporate Tax & MTD
Corporation tax: 25% on profits above £250,000; 19% small-profit rate.
Making Tax Digital: Being extended in 2026 to include smaller businesses.
📞 For tailored year-end planning and dividend optimisation, contact Yahesa Accounting.
Tags: uk director checklist, uk tax 2025, director loans, companies house reforms, making tax digital
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