Company Directors: New Self Assessment Reporting Rules From 2025/26

HMRC is continuing to tighten how information is reported in Self Assessment tax returns. While the government’s aim is to reduce the number of people who must file returns, those who do have to file will face more detailed questions - particularly for company directors and owners of UK “close companies”.

What’s Changing?

For the 2025/26 tax year onwards, the self-assessment return will make certain director-related questions compulsory.

For directors of close companies (generally UK-resident companies controlled by five or fewer people), additional details will be required on the Employment schedule SA102, including:

• The name and registered number of the close company

• The value of dividends received from that close company during the year (reported separately from other UK dividends)

• Their percentage shareholding in the company during the year (based on the highest percentage held at any point)

Dates For When a Business Starts or Ends

There will also be new requirements to include a start and/or end date where a business operated by the taxpayer commences and/or ceases during the tax year. These changes apply not only to individual tax returns, but also to trust and partnership returns.

Will This Affect Who Has to File a Tax Return?

No. These updates do not change which individuals or businesses must file a self-assessment tax return. They are about what information must be included once a return is required.

New Penalty For Missing or Incorrect Details

A new penalty has been introduced specifically for failures to provide the extra information. The penalty is £60 for each failure to correctly supply the required additional details.

This may apply to:

• Individual Self Assessment returns

• Trust tax returns

• Partnership tax returns

Getting Ready Ahead of Time

Some of the new disclosures may not be straightforward - particularly where shareholdings involve different classes of shares with different rights.

HMRC guidance on how to calculate and report these items is expected to be clarified, ideally before the 2025/26 returns are filed (from 6 April 2026).

If you have any questions on the above, please feel free to contact us.