New HMRC Reporting Rules for Company Directors – What You Need to Know

From the 2025/26 Self Assessment tax year, many company directors will be required to provide additional information on their personal tax returns.

If you're a director of an owner-managed or family-owned company, these changes are likely to affect you.

Although the new reporting requirements won't increase the amount of tax you pay, failing to complete the new sections correctly could lead to HMRC penalties of £60.

Here's what you need to know.

Who do the new rules apply to?

The additional reporting requirements apply to directors of close companies who are already required to complete a Self Assessment tax return.

A close company is broadly one that is controlled by:

• Five or fewer participators (usually shareholders); or

• Any number of participators who are also directors.

This means the rules will affect the vast majority of owner-managed businesses.

What information must be reported?

For each close company you are a director of, you'll need to include:

✔️ The company name

✔️ The company registration number

✔️ The amount of dividends received from that company (even if this is £0)

✔️ The highest percentage of share capital you held during the tax year (even if this is 0%)

If you're a director of more than one company, you'll need to complete a separate employment section for each one.

Frequently Asked Questions

Do all company directors now have to complete a tax return?

No.

These changes do not bring all directors into Self Assessment. They only affect directors who are already required to submit a tax return.

How is my shareholding calculated?

HMRC requires the percentage to be based on the nominal value of all shares you own, including:

• Ordinary shares

• Preference shares

• Non-voting shares

• Redeemable shares

If your shareholding changed during the year, you should report the highest percentage held.

Will this change how much tax I pay?

No.

The dividend figure entered on the employment pages is for reporting purposes only. Your tax liability will continue to be calculated using the dividend income entered elsewhere on your tax return.

What if I didn't receive any dividends?

You must still complete the relevant boxes, even if the answer is nil.

Why does this matter?

Although these are administrative changes, they add another layer of reporting for company directors. Making sure the information is complete and accurate will help avoid unnecessary delays, HMRC queries and potential penalties.

As with many new reporting requirements, it's expected that HMRC will publish further guidance as the rules are implemented.

Final Thoughts

If you're a company director and complete a Self Assessment tax return, it's worth checking now that you have the information you'll need before the filing deadline.

Preparing early can make the process much smoother and help ensure your return is both accurate and compliant.

If you're unsure whether these new requirements apply to you, or would like advice on completing your Self Assessment tax return, we'd be happy to help.