New Self Assessment Reporting Rules for Close Company Directors

From the 2025/26 tax year, directors of close companies must provide additional information on their Self Assessment tax returns. A close company is generally controlled by five or fewer shareholders or by its directors.

What Information Must Directors Report?

Directors required to complete a Self Assessment return must provide:

• The company’s name and registered number.
• The dividends received from the company during the tax year.
• Their highest percentage shareholding.

These details must be completed even if the company was a close company for only part of the tax year.

What Has HMRC Clarified?

HMRC has confirmed that the reporting requirements also apply to unpaid directors, directors with no shares and directors of dormant close companies.

However, directors of registered charities or Community Interest Companies may be exempt where they received, or became entitled to receive, no employment or dividend income.

Avoid Penalties by Reporting Correctly

Incorrectly completing the relevant boxes may result in a £60 penalty. Directors should therefore inform their accountant of all directorships held during the tax year to ensure their Self Assessment returns are accurate and complete.