Company directors will need to provide additional information on their Self Assessment tax returns from the 2025/26 tax year onwards.
The new requirements apply whether you are a director of a trading company or a dormant company, and are designed to give HMRC greater visibility over directors’ interests in closely owned businesses.
What information will need to be reported?
When completing your Self Assessment return, you’ll need to confirm:
- Whether you were a director during the tax year
- Whether the company was a close company
If you are a director of a close company, you’ll also need to provide:
- The company name
- The company registration number
- Any dividends received from the company
- Your percentage shareholding
A separate employment page will need to be completed for each directorship held during the year.
Who is affected?
The rules apply if you were a director at any point during the tax year, including where you:
- Resigned before the end of the year
- Were appointed and resigned within the same tax year
Directors of dormant companies may also be affected if the company meets the definition of a close company.
Don’t leave boxes blank
HMRC has confirmed that dividend income and shareholding percentages must be completed even when the figure is nil.
For example:
- If no dividends were received, enter £0
- If no shares are owned, enter 0%
Leaving these boxes blank could be treated as a failure to provide the required information.
Penalties
A penalty of £60 may apply where the required information is not included on a tax return.
HMRC’s current view is that this would be a single penalty per tax return, regardless of the number of directorships or items of information omitted.
What should directors do now?
Although the first affected returns relate to the 2025/26 tax year, directors should start gathering the relevant information now, particularly if they hold multiple directorships.
The rules remain subject to ongoing discussion around HMRC’s interpretation of the legislation, and further guidance may be issued. We’ll continue to monitor developments and provide updates where necessary.
If you’d like advice on how these changes affect you, contact tax partner, Wendy Anderson, by clicking the button below.
