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self assessment vs company tax returns

Self Assessment Vs Company Tax Returns: What’s the Difference?

08/05/2025Self Assessment Tax Returns

If you are looking for the management of any business, this requires a full understanding of company tax returns and self-assessment procedures. Further, the income declaration procedure for HMRC functions differently for each entity because they operate in distinct circumstances. In this article, you will learn key points about self-assessment vs. company tax returns that highlight the differentiation.

Talk to our best accountants and bookkeepers in the UK at CruseBurke. You will get instant help with self-assessment vs company tax returns.

How Does the System of Self-Assessment Work?

Through the self-assessment system, individuals file reports for personal taxes that stem from untaxed income. The list comprises dividends together with expenses and benefits, and directors’ loans received from your self-established company. Additionally, directors must register for self-assessment taxes even though their PAYE salary taxes, even if they have extra untaxed earnings.

The HM Revenue and Customs (HMRC) operates self-assessment as its mechanism to deduct income tax from people who get income beyond PAYE regulations, including freelancers, directors, landlords, and individuals who receive dividends. Further, tax deductions occur through PAYE from employee salaries and pension payments. You need to use the self-assessment tax return to report added income from business activities, including self-employment or investments.

What Circumstances Require Filing a Self-Assessment Tax Return?

The self-assessment tax return serves as the method through which HMRC obtains income tax payments from all individuals who do not have automatic tax collection.

You must file a self-assessment return under four circumstances, including these conditions.

  • People who operate as sole traders need to file a self-assessment if their taxable income goes past £1,000 during a tax year.
  • The business partnership accepts you as a full partner.
  • Your position as a company director requires you to handle untaxed income receipts.
  • You’re a shareholder receiving dividends
  • The tax laws require you to pay capital gains tax if the value of what you sold experienced growth.
  • You have an obligation to pay the High Income Child Benefit Charge

When Should You Register for Self-Assessment?

Self-assessment registration becomes necessary for anyone who owns a company that provides untaxed income. The following dates serve as important deadlines for the 2025/26 tax year, extending from April 6, 2025, to April 5, 2026.

All individuals need to register for self-assessment by 5 October 2026.

  • On 31 October 2026, all persons must submit paper tax returns.
  • The date for submitting online tax returns exists as 31 January 2027.
  • On 31 January 2027, you need to complete your tax payment obligations to HMRC.

How Does a Company Tax Return Work?

Your company must include all statutory accounts in this reporting document for financial result declaration purposes. The company tax return reveals both profit and loss results with the amount of corporation tax liability.

Moreover, the company tax return filing requirement does not apply to those who operate their business alone or in partnership as sole traders. The requirement falls on you to file your self-assessment return instead of a company tax return.

Further, you need to provide the Online Company Tax Return to HMRC before your accounting period for corporation tax ends or within twelve months after its conclusion. Yearly submission of accurate reports becomes mandatory even if your business has yet to generate profits.

What Does a Company Tax Return Include?

A company tax return requires you to perform multiple calculations, which include profit or loss calculations for corporation tax purposes and corporation tax amounts owed.

Your corporation tax calculation must determine the profit or loss that your company generated despite potential discrepancies with the annual account figures. Your company must determine the exact amount of corporation tax that it owes.

The return preparation and filing process exists as an option to choose between self-filing and hiring an accountant. However, limited companies have the option to file their annual accounts when submitting to Companies House.

Self-Assessment vs Company Tax Returns

Some key points give an overview and help you in the analysis of self-assessment vs. company tax returns.

Self-Assessment Tax Returns

  1. Sole traders and freelancers, along with landlords and other individuals, use this to file their income tax reports to HMRC.
  2. You need to file a self-assessment when HMRC issues a notification along with any form of untaxed income.
  3. Company accounts should be filed after 5 April marks the end of the tax year. Online or paper filing is available (SA100 form).
  4. Its registration needs to happen by 5 October when starting for the first time.
  5. The submission deadline for this form is 31 January, yet failure to file on time results in penalties, together with accruing interest payments.
  6. All documentation needed for precise reporting should be kept safely (e.g., receipts with bank statements).
  7. The calculation method for tax liabilities relies on income level and tax band determination

Company Tax Returns

  • A limited company has to file annual returns if HMRC serves a written notification.
  • Every limited company needs to file their reports except when proving zero corporation tax profits.
  • The process requires a calculation of corporation tax profit/loss along with the determination of liability.
  • Limited companies have to file their accounts within 12 months following their accounting period conclusion.
  • Corporation tax payment is due 9 months and 1 day after the accounting period.
  • Online corporation tax submission is possible through HMRC or an accounting firm.
  • Limited companies must submit their documents to Companies House during the same filing process.

Here is a relevant detail in this regard.

 

Feature Self Assessment Company Tax Returns
Who Must File Sole traders, landlords, etc. Limited companies
Tax Type Income Tax Corporation Tax
Deadline to File Return 31 January (online) 12 months after accounting period
Tax Payment Deadline 31 January 9 months and 1 day after period end
Penalties for Late Filing Yes Yes
Filing Platform HMRC Online/Paper SA100 HMRC Online/Accountant submission

Conclusion

Consequently, penalties from HMRC will occur when you fail to file your self-assessment vs. company tax returns by their deadline. However, all limited companies must present their company tax return annually to HMRC despite lacking profit or corporation tax obligations. Hence, self-assessment vs. company tax returns both show significant differences.

Reach out to our intelligent and clever-minded guys to get the answer to your queries in the UK, we will get to your answers quickly. We will help to decide how to deal with your tax implications.

Disclaimer: The information about self-assessment vs company tax returns provided in this blog includes text and graphics of a general nature. It does not intend to disregard any of the professional advice.

   

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