New self-assessment requirements applying to certain company directors
From the 2025/26 tax year onwards, certain company directors will be required to provide additional information in their tax returns. These requirements apply to directors of close companies, as set out in Statutory Instrument 2025/84, The Income Tax (Additional Information to be included in Returns) Regulations 2025. A close company is broadly, a company which is under the control of:
- five or fewer participators (a participator is any person having a share or interest in the capital or income of the company), or
- any number of participators if those participators are directors, or
more than half the assets of which would be distributed to five or fewer participators, or to participators who are directors, in the event of the winding up of the company. Please see Close companies – key definitions and overview.
Affected directors will be required to provide the amount of dividend income received from their own companies separately to other dividend income, and the percentage share they hold in their own companies.
The Association of Taxation Technicians (ATT) has created a helpful FAQ guide to assist taxpayers and advisers in understanding these requirements. Please see the ATT’s new FAQ guide on the additional information requirements for company directors completing their self-assessment tax returns.
The ATT says it is also actively seeking clarification from HMRC on several points and will update guidance as further information becomes available.