If you’re a company director who completes a Self Assessment tax return, there are new reporting requirements you should be aware of. From the 2025/26 tax year, HMRC requires additional information about directorships, particularly those involving close companies. These changes could affect many owner-managed and family-run businesses.
What is a close company?
A close company is generally a company controlled by five or fewer participators, such as shareholders, or by its directors. Many privately owned limited companies fall into this category.
What information must directors report?
Directors of close companies who are required to complete Self Assessment will generally need to provide additional information, including:
- The company’s name and registered number
- The amount of dividend income received from that company during the tax year
- The highest percentage shareholding held during the year
The reporting requirements also cover directorship status, including certain unpaid appointments.
What if you receive no salary or dividends?
This is where some directors may be caught out. HMRC has clarified that the requirements can still apply to unpaid directors and directors of dormant companies, even where no dividends are received or shares are held. Where the relevant dividend or shareholding figure is zero, it must still be reported correctly. Limited exceptions apply, including certain unpaid directors of registered charities and Community Interest Companies.
Could there be penalties?
HMRC may impose a £60 penalty where the required information is not provided. These changes do not automatically mean that every company director must register for Self Assessment. They generally affect individuals already required to submit a tax return.
What should you do now?
Before preparing your 2025/26 tax return, review all directorships you held during the tax year, including any unpaid roles or appointments involving dormant companies.
.