📋 A quieter change with a real impact
If you're a director of a close company (broadly, one controlled by five or fewer shareholders, or controlled by its own directors), your Self Assessment return now asks for a lot more detail than it used to. The change applies from the 2025/26 tax year, meaning it affects returns you'll be filing between now and 31 January 2027.
Previously, directors simply confirmed whether their company was close and reported total dividend income as one figure. From this tax year, HMRC wants a full breakdown.
🔍 What you now need to report
For each close company you're involved with, HMRC wants to know your highest shareholding percentage during the year, the dividend income received from that specific company, and the company's Companies House registration number. This applies even if you took no salary or dividend at all. A figure of zero still needs to be entered rather than the section being left blank.
⚠️ The bit that catches people out
HMRC previously allowed directors to skip the employment section entirely if they received no pay or benefits. That's no longer a safe assumption. If you're an unpaid director of a close company, you may still need to complete these boxes. The one exception is unpaid directors of registered charities or community interest companies, who HMRC has confirmed are excluded, provided they received no employment or dividend income from that company or any connected one.
What to check before your return goes in
- Confirm which of your directorships count as "close companies"
- Gather the Companies House number for each one
- Work out your highest percentage shareholding during the year, even if it changed
- Don't assume an unpaid role means nothing needs reporting
💬 We'll take care of the detail
This is exactly the kind of change that's easy to miss if your personal and company tax affairs are handled separately. Your Client Manager can make sure everything lines up correctly across your personal return, your company accounts, and Companies House. Get in touch and we'll take it from here.