If you’re a company director, your next Self Assessment tax return could involve more paperwork than before. And even if you don’t receive a salary or dividends from your company, you may still need to provide additional information to HMRC.
New reporting requirements introduced for the 2025/26 tax year mean that directors who already complete a personal tax return must disclose more details about their directorships.
HMRC has now announced some exceptions to these requirements, but there are still some questions about who needs to report what.
What information do directors need to provide?
Under the new rules, directors completing a Self-Assessment return must provide information through the SA102 Employment pages, including whether they were a director during the tax year and whether the business is a close company. A close company is broadly one controlled by five or fewer shareholders, or by its directors. Many owner-managed SMEs and family businesses fall into this category.
If you’re a director of a close company, you’ll also need to provide:
- The company’s name and registration number.
- The amount of dividend income you received from the company.
- Your highest percentage shareholding during the tax year.
These requirements can apply even where you don’t receive a salary or dividends, or where the company is dormant.
Has HMRC introduced any exceptions?
Following concerns about unnecessary administration, HMRC has confirmed some exceptions for certain directors.
- Directors of non-UK companies: where no pay or benefits are received from the directorship, HMRC’s updated guidance says the additional reporting is not required.
- Directors of registered charities and community interest companies (CICs): an exception applies where the director has not received, or become entitled to receive, employment income, dividends or other distributions from the organisation or a connected company.
These exceptions aren’t as straightforward as they might appear. The Association of Taxation Technicians has highlighted several areas where further clarification is needed, including precisely what qualifies as a non-UK company and how the rules apply to some unincorporated associations.
What does this mean for your business?
Don’t assume that an unpaid directorship means there’s nothing to declare. If you have multiple directorships, own shares in a family business or act as a director of a dormant company, your reporting obligations may have changed. It’s worth reviewing your position now, particularly if you have interests in several companies or organisations.
The new rules don’t automatically mean you’ll pay more tax, but they do mean HMRC expects more detailed information.
Unsure whether the new rules apply?
If you’re unsure what you need to declare on your next Self-Assessment return, get in touch with our friendly team. We’ll help you understand the requirements, identify any exceptions and ensure your tax affairs are in order.