HM Revenue and Customs has confirmed new reporting measures for UK resident directors of close companies, who need to file a Self-Assessment tax return.
From the start of the 2025/26 financial year, when submitting their tax return, company directors will need to share more information about their company.
What has HMRC changed for close company directors?
Current forms that close company directors need to complete have optional questions about the director and whether it is a close company.
However, from April 2026, close company directors will legally be required to answer the optional questions on the SA102 form.
In addition to this, close company directors will need to confirm the company’s name and registered number alongside the value of dividends received and shareholding percentage during 2025/26.
If shareholding has changed over the course of the year, the highest percentage will need to be included in your Self-Assessment submission.
What are the repercussions of not following the new regulations?
A new penalty system has been introduced for these changes. Close company directors who fail to comply face a £60 fine.
Because these requirements lie outside HMRC’s current penalty framework and do not impact either Income Tax or Capital Gains Tax liabilities, a new penalty system has been put in place to accommodate the changes.
The fines can accumulate quickly as the £60 is applied to each error found in the tax return submitted to HMRC.
Are you prepared for the latest changes?
It will be a challenge at first to gather all the information needed, but its important close company directors keep a record of all activities to ensure they can submit all required information.
If you do need advice and support, you can speak with our expert team, who will support you with each step of your tax return to ensure everything is submitted correctly and on time.
For help with your Self-Assessment tax return, speak with our team.
