New Self Assessment reporting requirements for company directors from April 2026

10 October 2025 | posted in Self Assessment tax returns Business tax

From 6 April 2026, HMRC is introducing new requirements for company directors when completing self assessment tax returns. The section on close companies, which was previously optional, will become mandatory.

A close company is a UK company controlled by five or fewer people, and this definition includes the vast majority of small and family-run limited companies.

Under the new rules, directors of close companies will be required to provide additional details for each company, including:

• The name and registered number of the close company.
• The value of dividends received from the close company during the tax 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 if the holding changes.

These changes will have a significant impact on directors of small businesses, many of whom may not have previously needed to supply this information. HMRC has also confirmed that failure to correctly complete this section will result in a £60 penalty.

Calculating shareholdings may not always be straightforward, particularly where companies issue different classes of shares with varying rights to income and capital. As such, directors may find these new requirements challenging.

If you are unsure whether your company qualifies as a close company, or need assistance in preparing the necessary information, please get in touch – our team will be happy to help.