New Self Assessment reporting rules for company directors from 2025/26

Company directors who complete a Self Assessment tax return need to be aware of new reporting requirements for the 2025/26 tax year, particularly directors of close companies such as owner-managed and family businesses.

The changes mean additional information about your company interests and dividend income will need to be included in your tax return.

What has changed for company directors?

Previously, directors could voluntarily identify themselves as directors of close companies on the employment pages of their Self Assessment return.

From 2025/26, additional reporting becomes mandatory for affected directors, giving HMRC greater visibility of the relationship between individuals and the companies they own or control.

Directors within the scope of the rules will need to provide details including:

• the name and registered number of the close company
• the dividends received from the close company during the tax year
• the highest percentage of the company's ordinary share capital held during the relevant tax year

This makes accurate records of dividend payments and changes in shareholdings particularly important when preparing a 2025/26 Self Assessment tax return.

What is a close company?

Broadly, a close company is a UK company controlled by five or fewer participators, or by participators who are also directors.

A participator is someone with an interest in the company's capital or income. In many smaller businesses this will simply mean its shareholders.

As a result, the new Self Assessment reporting requirements will be particularly relevant to owner-managed businesses, family companies and director-shareholders.

Does every company director now need to file a tax return?

No. Being a company director does not, by itself, mean that you have to submit a Self Assessment tax return.

The new reporting requirements apply where a director is already required to complete a Self Assessment return. You do not need to register for Self Assessment solely because of these additional disclosures.

If you are unsure whether you need to submit a return, it is worth checking your position rather than assuming your directorship automatically creates a filing requirement.

Preparing for your 2025/26 tax return

The 2025/26 tax year ended on 5 April 2026, and online Self Assessment returns for that year must normally be submitted by 31 January 2027.

If you're affected, make sure you have records of your company details, dividends and shareholdings available before your return is prepared.

And it isn't just about staying compliant. For director-shareholders, your mix of salary, dividends and other income can have wider tax consequences. Our Personal Tax and Business and Tax Advisory teams can help you understand your reporting obligations while looking at the bigger picture and making sure your affairs are structured appropriately.

Call them now on 01380 723692 or email here.