New Self Assessment Reporting Requirements for Company Directors in 2025/26

Company directors may need to provide additional information when completing their Self Assessment tax returns for the 2025/26 tax year, following the introduction of new HMRC reporting requirements.

The changes affect directors of close companies, including many small and owner-managed businesses across the UK.

With additional disclosures now mandatory for affected directors, it's important to understand what information HMRC requires and how to ensure your tax return is completed correctly.

What Is a Close Company?

A close company is generally a limited company controlled by five or fewer shareholders, or by its directors.

Many family-run businesses, small limited companies and owner-managed businesses fall within this definition.

From the 2025/26 tax year onwards, directors of close companies who are required to submit a Self Assessment return must provide additional details about their directorships and shareholdings.

What Information Must Directors Declare?

Under the new requirements, affected directors must include the following information on their Self Assessment tax return:

• Company name: The registered name of the close company.

• Company registration number: The company's official registration number.

• Dividend income: The total amount of dividend income received from the company during the tax year.

• Shareholding percentage: The highest percentage shareholding held in the company during the tax year.

  
  

Previously, Self Assessment returns included optional boxes allowing taxpayers to indicate whether they were directors of close companies.

For the 2025/26 tax year onwards, completing the relevant disclosures is mandatory for directors who fall within the new requirements.

Do All Company Directors Need to Complete the New Disclosures?

The additional reporting requirements only apply to affected directors who are already required to submit a Self Assessment tax return.

Being a director of a close company does not, by itself, mean you must register for Self Assessment.

However, if you are required to submit a return for another reason, you must ensure that any relevant close company directorships are correctly disclosed.

The requirements also apply where a company was classified as a close company for only part of the tax year.

What If You're an Unpaid Director or Have No Shares?

HMRC has clarified that the new reporting obligations extend to some directors who might otherwise assume they are exempt.

Unpaid directors

Directors who receive no salary or other remuneration from a close company must still complete the relevant disclosures if they are required to submit a Self Assessment return.

Directors with no shareholding

You must also disclose your directorship even if you own no shares in the company.

Directors of dormant companies

The requirements apply to directors of dormant close companies, despite the company having no trading activity.

HMRC has also confirmed that simply listing unpaid directorships in the additional information section of a tax return is not sufficient. The designated reporting boxes must be completed.

Are There Any Exemptions?

Certain directors of registered charities and Community Interest Companies (CICs) may be exempt from the additional disclosures.

This exemption can apply where the director has not received, or become entitled to receive, employment income or dividend income from the organisation.

However, the rules should be considered carefully to establish whether an exemption applies to your circumstances.

What Happens If You Don't Provide the Correct Information?

HMRC may impose a £60 penalty where the close company disclosure requirements are not completed correctly.

To avoid potential penalties or unnecessary complications, directors should ensure that their accountant is aware of all relevant directorships held during the tax year.

This includes directorships of dormant companies, businesses in which you have no shareholding and companies from which you receive no income.

Need Help With Your 2025/26 Self Assessment Tax Return?

With additional reporting requirements coming into effect, preparing an accurate Self Assessment return is more important than ever.

If you're a company director, reviewing your directorships and ensuring the correct information is available ahead of your tax return deadline can help prevent errors and potential penalties.

At SJC Chartered Accountants, we help company directors and business owners navigate their tax responsibilities, ensuring their Self Assessment returns are completed accurately and in line with HMRC requirements.

If you're unsure whether the new rules apply to you, or need assistance preparing your 2025/26 tax return, get in touch with our team today.