Being a company director is a big responsibility, and failing to meet the responsibilities required can have negative consequences. Director duties go beyond overseeing the business, dealing with clients, and supporting employees.
A vital part of the role as company director is to ensure finances are under control and all taxes are recorded, reported, and paid on time. These key responsibilities of a director feed into the success of the company.
To find out more about being a company director, and the tax responsibilities that come with the role, continue reading.
What is a Company Director?
What is a company director? A company director is a senior member of staff who is registered as a director of a company with Companies House.
As director of a company, you’re legally responsible for running the company, the financial health of the company, and ensuring vital information is provided to Companies House on time. Typically, as a company director, you’ll be required to:
- Send a confirmation statement
- Send annual accounts
- Inform of any changes to your registered office address
- Changes to your company officers
These are just a few examples of what should be provided to Companies House. However, it’s important to stay up-to-date and ensure that any new information they require is sent on time.
Typically, the term company director is associated with a limited company – but the role can still apply to other types of business structures, too.
Companies House is the registrar of companies in the UK that maintains and inspects information on both limited companies and limited liability partnerships. To form a limited company, one director is required.
Tax Responsibilities
As well as overseeing the day-to-day running and management of a company, a company director’s duties also include dealing with tax responsibilities. As mentioned, as a director, you’re legally responsible for your company.
This means that if your company breaks the law, you could be held accountable. Being a company director can come with some challenges. Undoubtedly, a workload comes with the position, making it difficult to stay on top of taxes and other important financial aspects of the business.
This is why most company directors work with a trusted accountant. Although working with an accountant is advised, it’s still your responsibility as company director to ensure any tax obligations are met.
As a company director, it’s important to understand what type of taxes you pay. Limited companies should be aware of these key taxes:
- Corporation tax
- Capital gains
- VAT
- National insurance
Corporation tax
Corporation tax is one of the most significant taxes for limited companies. It’s company directors who need to ensure corporation tax, among other types of taxes, is paid correctly and on time.
Paying corporation tax is vital for limited companies and other organisations across the UK. It’s a profit-based tax that is based on your company’s tax return, which is completed each year. As of April 1st, 2023, the UK corporation tax changed – increasing to 25% from 19%.
Failing Your Role as a Company Director
The Companies Act 2006 states:
“A director must act with the care, skill and diligence that would be exercised by a reasonably diligent person with the general knowledge, skill and experience to be expected of a director.”
When a director fails to act with care for their company, negative consequences can occur. The Companies Act also states these key duties of a company director:
- Act within powers under the company’s constitution
- Promote the success of the company
- Exercise independent judgement
- Exercise reasonable care, skill and diligence
- Avoid conflicts of interest
- Not accept benefits from third parties
- Declare interests in proposed or existing transactions or arrangements with the company
Following your duties as a company director is vital. Part of your duty is to ensure your tax returns are completed on time. If you fail to meet your legal responsibilities, you could potentially be fined or prosecuted.
In worst-case scenarios, you could be disqualified as a company director. It’s your job to make sure company records are kept accordingly and that any changes are reported correctly.
To ensure that you’re staying on top of any tax payments, we recommend a professional accountant who can advise, guide, and support the financial side of your company.
Benefits of Hiring an Accountant as a Company Director
Several benefits come with hiring an accountant. Accountants can save you valuable time by allowing you to focus on other important areas of your business.
Being a company director often means that your attention is in different places at once. By hiring an accountant, you can trust that your taxes are being dealt with correctly while you manage the rest of your business. Accountants can help by:
- Providing professional, advice, knowledge and support
- Filing accounts and tax returns
- Helping to avoid tax investigations
- Help avoid penalties
- Dealing with annual accounts
- Conducting reports
By hiring an accountant, you can direct your focus on other key areas of both your work and personal life. Although working with an accountant comes at a price, it helps prevent costly mistakes from occurring through issues with HMRC, or Companies House.
However, it’s important to note that although accountants are there to make life a little easier by providing a service, it’s ultimately up to you, the company director, to be legally responsible for financial management.
Accounting Services for Company Directors
At LJS Accounting Services, we offer expert accounting services. Our specialist team of accountants has years of experience working with a diverse range of clients. We provide services covering VAT, bookkeeping, annual accounts, and director’s tax returns.
We understand how busy life can get for a company director. It can be tough when you’re the person carrying the weight of a company, which is why we’re on hand to help take on the more tedious side of your business’s finances.
Our premium support package is the most beneficial, offering everything a company needs. Premium support includes our standard package, along with some of the following:
- Monthly or quarterly management reports
- Interim reporting when required
- Variance reports
- Regular meetings
- Cashflow and identifying changes
We believe that all company directors could personally benefit from working with one of our trusted and professional accountants. We allow you more time to focus on other general duties of being a director, while we handle your taxes.
If you’d like to find out more about our accounting services, we encourage you to get in touch with our team today. We look forward to hearing from you!

Keli Evans, Director at LJS Accounting Services, excels in taxation and statutory accounts. With a focus on strong client relationships, she leads a diverse portfolio, overseeing vital financial aspects like VAT, payroll, pensions, and taxation with a holistic and committed approach.