Company Director self assessment tax return changes are taking place from the start of the 2025–26 tax year, when new disclosure rules for company directors and business owners will apply.
HMRC is introducing significant changes to the information required on Self Assessment Tax Returns (SATR). The new rules affect company directors, close companies, and individuals operating sole trades, partnerships, or trusts, increasing the level of detail that must be reported. These changes aim to enhance transparency and data accuracy but may also mean that small business owners and directors who prepare their own returns must allocate more time to do this.
What’s Changing on the Self Assessment Tax Return?
Currently, the employment pages of the SATR (form SA102) include optional questions asking whether a taxpayer is a company director and whether the company is a close company.
From 6 April 2026, when the 2025–26 returns can be filed, answers to these questions will become mandatory, and new disclosure requirements will apply to directors of close companies.
New Information Required
If you’re a director of a close company, you will be required to include the following information on your self-assessment return:
- Company name and registered number
- Total dividends received from that close company during the tax year (reported separately from other UK dividends)
- Your percentage shareholding in the company — based on the highest percentage held at any point during the year if this changed
What Is a Close Company?
HMRC defines a close company as a UK-resident company controlled by five or fewer individual shareholders.
This means most small and family-owned limited companies in the UK will fall under the “close company” category. Directors and shareholders in these businesses should therefore expect to be affected by the new reporting obligations.
Additional Disclosure for Business Start and End Dates
The 2025–26 tax year will also introduce a new requirement to include the start and/or end date of a business where trading begins or ceases during the year.
This change applies not just to individuals but also to trust and partnership tax returns.
Who Needs to File a Tax Return?
These new rules do not change who is required to complete a Self Assessment Tax Return. The changes only affect the information you’ll need to include if you already file one.
Penalties for Missing or Incorrect Information
HMRC will apply a new penalty regime for failure to provide the required information.
A £60 penalty can be charged for each omission or error where the additional information has not been correctly reported. These penalties will apply from the 2025–26 tax year onwards and may affect individual, trust, and partnership returns.
Key Areas Still Requiring HMRC Guidance
While the purpose of the new rules is clear, some practical details remain uncertain. For example, it’s not yet clear how shareholdings should be measured where there are different classes of shares with varying rights to income or capital.
Further HMRC guidance is expected to ensure that taxpayers and advisers can comply accurately. We expect updates before the 2025–26 returns become available for filing in April 2026.
How We Can Help
At bennettbrooks, our team of tax specialists can help you remain compliant with the new self-assessment disclosure requirements. If you’re a company director, shareholder, or business owner, now is the time to review your records and ensure you’ll be ready to submit the extra information required by HMRC next year.
Please get in touch with your usual bennettbrooks adviser or contact our tax team to discuss how company director self assessment tax return changes might affect you.
