The Self Assessment dataset for 2025-26 sees important changes in the information company directors need to enter onto their Self Assessments.
We recently shared a brief from ACCA on this – Close company directors’ tax returns
We also included information on our June news email to clients:
“The first of these changes is already in force – on a Self Assessment from 2025-26 onward – those we are filing now – details of dividends and percentage shareholdings in a company need to be disclosed on the relevant employment section of the Self Assessment relating to the directorship of the said company. This is a rather novel blurring of employment and investment matters, salary and dividends. It enables HMRC to cross check information, but does make assumptions around simplicity of affairs which are, for genuine commercial reasons, not always applicable. Sunshine is, of course, the best disinfectant, but sometimes there are good reasons for complexity. In practice more attention to detail is required, both by us when we prepare your returns, and by our clients checking their returns for signature. “
HMRC have recently published some FAQs to clarify requirements. Salient points are:
- Where directors are unpaid and/or have zero shareholdings in the close company, they must still complete the new boxes on the tax return.
- Where ‘zero’ dividend income has been received, or there is no shareholding, ‘0’ should be entered in the appropriate boxes.
- HMRC have also confirmed that listing unpaid directorships in the additional information box is not an acceptable option.
- Directors of dormant close companies must also complete the new boxes.
- Directors of registered charities or Community Interest Companies do not need to complete the new boxes where they did not receive, or become entitled to receive, any employment income or dividend income.
HMRC have highlighted that a £60 penalty may apply for the incorrect completion of the close company boxes.
Mention is made of “Close Companies” – generalising, the definition is:
A close company is a UK limited company that is controlled by five or fewer “participators” (such as shareholders or directors), or by any number of participators who are also its directors.
Most small, family-owned, and owner-managed private limited companies in the UK fall under this tax classification.
Practical Actions
As your accountants we may not have all the required information, for example companies we do not act for, or dormant companies we know nothing about.
If you are a company director it is important that when completing our Self Assessment Questionnaire you provide us with details of all companies you are involved with, including:
- those where we do not act
- those that are dormant
- those where you have received no salary or dividend.
If we have already prepared and filed your 2025-26 Self Assessment, take a moment to check if there is any doubt and let us know of any issues.