New HMRC Self-Assessment Reporting Requirements for Company Directors from 2025/26

From the 2025/26 Self-Assessment tax return onwards, company directors may be required to provide additional information about dividends received from close companies.

Introduced by the Finance Act 2024, these changes are designed to give HMRC greater visibility of director remuneration and company transactions. As a result, maintaining accurate and comprehensive records will become more important.

What Information Will Need to be Reported?

If you are a director of a company during the 2025/26 tax year, your Self-Assessment tax return may now require you to disclose:

• Whether you were a director of a company during the tax year.
• Whether that company was a close company.
• The company's name.
• The company's registration number.
• The total dividends you received from that close company during the tax year.
• The highest percentage shareholding you held during the tax year.

HMRC will receive substantially more information directly from taxpayers, making inconsistencies easier to identify.

Who is Affected?

The changes will mainly affect directors and shareholders of owner-managed and family businesses who receive dividends from close companies and complete Self-Assessment returns.

A close company is broadly a company controlled by five or fewer shareholders (or by its directors). As most owner-managed limited companies fall within this definition, many directors will be impacted by these new requirements.

Why These Changes Matter

HMRC is steadily building a more complete picture of director remuneration and shareholder activity.

Combined with recent consultations and increased disclosure requirements within company accounts, HMRC will be able to compare information across:

• Company accounts
• Corporation Tax returns
• Confirmation statements
• Self-Assessment tax returns
• Dividend payments
• Director loan account transactions

This enhanced data matching is likely to make discrepancies easier for HMRC to identify, increasing the likelihood of enquiries where records do not align.

Don’t Leave Boxes Blank

Leaving sections incomplete, providing estimates or submitting inaccurate information could result in unnecessary HMRC enquiries or delays.

Directors should keep accurate dividend and shareholding records, properly documented declarations, board minutes and dividend vouchers. These records should be reconciled with the company accounts and the director’s personal tax return.

What Are the Penalties?

The new reporting requirements do not introduce any additional penalties. However, the existing Self-Assessment penalty regime will continue to apply.

What Should Company Directors Do Now?

Now is the time to review your dividend processes and ensure they stand up to increased HMRC scrutiny.

Directors should review how dividends are declared and documented, keep board minutes and dividend vouchers, record changes in shareholdings, reconcile payments with company and personal tax records, and maintain director loan accounts accurately. Seek advice if you are unsure whether the company is close or whether the records are complete.

We’re Here to Help

HMRC is receiving more information than ever before about company directors, dividend income and shareholder transactions. Ensuring your dividend procedures are robust, properly documented and fully compliant has never been more important.

If you would like advice on reviewing your dividend procedures, preparing compliant documentation or ensuring your company records are ready for the 2025/26 reporting changes, please get in touch with our team at enquiries@teamjs.co.uk. We're here to help you stay compliant and avoid unnecessary issues with HMRC.