New Tax Return Reporting Requirements for Company Directors from 2025/26
Important changes for company directors completing a UK Self-Assessment tax return
From the 2025/26 tax year (6 April 2025 to 5 April 2026), new information requirements apply to individuals completing a UK Self-Assessment tax return who have held company directorships during the tax year. Additional disclosures are required in respect of directors of close companies.
These requirements go beyond the usual reporting of salary, dividends and other taxable income. They may also apply where a directorship was unpaid, the company was dormant, or the individual held a directorship without owning shares.
Company directors should therefore review their appointments carefully before submitting their 2025/26 tax return to ensure that all required information is provided.
Who is regarded as a director?
For these purposes, the definition of a director is broad. It includes anyone occupying the position of director, whatever their title, as well as certain individuals in accordance with whose directions or instructions the directors are accustomed to act.
Individuals should not assume that the reporting requirements are limited to those with a particular job title or those who receive remuneration for their role.
What is a close company?
Broadly, a close company is a UK-resident company controlled by five or fewer participators, or by its director-participators.
A participator is generally someone with an interest in the company, which may include a shareholder.
The rules are particularly relevant to owner-managed businesses, where directors often own some or all of the company's shares.
What has changed for 2025/26?
The new requirements introduce additional disclosures within the Self-Assessment tax return. The principal changes are outlined below.
A. Mandatory disclosure of directorships
Individuals required to file a Self-Assessment tax return will generally need to disclose relevant UK company directorships held at any point during the tax year through the Employment pages.
HM Revenue & Customs (HMRC) has clarified that a separate Employment page must be completed for each relevant employment, directorship or office held during the year, subject to applicable exceptions.
This requirement may apply even where:
The directorship was unpaid.
No salary, benefits or other remuneration was received.
The individual did not own shares in the company.
The company was dormant.
The directorship was held in another company within the same corporate group.
Consequently, an individual with several directorships may need to complete multiple Employment pages, even if some appointments generated no income.
B. Additional disclosures for directors of close companies
Under the Income Tax (Additional Information to be Included in Returns) Regulations 2025, directors of close companies may also be required to provide additional company and shareholding information.
The required details include:
Company name: The name of the close company.
Company registration number: The company's registered number.
Dividends received: The amount of dividends received from the company during the tax year.
Shareholding percentage: The director's highest percentage shareholding in the company during the tax year.
These disclosures are separate from the normal reporting of taxable salary and dividend income. Directors should ensure that the additional information is complete and consistent with the other figures included in their tax return.
C. Application to Making Tax Digital for Income Tax
The additional information requirements are also relevant to individuals within Making Tax Digital for Income Tax (MTD).
Although qualifying individuals may provide income information through the MTD process during the year, the additional disclosures will still need to be addressed as part of the final year-end tax return, as applicable.
Who needs to report a directorship?
The following table provides a general overview of how the requirements may apply in different circumstances.
Your circumstances | What you generally need to do |
Director and shareholder of a UK close company | Complete the applicable director disclosures, provide the additional close-company information and report taxable salary and dividends. |
Director but not a shareholder | Report the directorship where required. Shareholding and dividend disclosures will depend on the applicable requirements and your circumstances. |
Shareholder but not a director | The director-specific disclosures do not apply merely because you own shares. Taxable dividend income must still be reported where required. |
Director of a dormant UK company | The reporting requirements generally still apply if you are required to file a tax return and no exception is available. |
Director of several companies within the same group | Separate Employment pages may be required for each relevant directorship, subject to applicable exceptions. |
Unpaid director of a registered charity or other qualifying organisation | A limited statutory exception may apply if the relevant conditions are satisfied. Eligibility should be checked before omitting a disclosure. |
These are general guidelines. The precise reporting obligations depend on the individual's circumstances and any applicable statutory exceptions.
Are there any exceptions?
Limited exceptions apply to certain categories of directorship.
For example, a specific exception may be available to certain unpaid directors of registered charities who neither received nor were entitled to receive employment income or distributions from the charity or a connected company.
The availability of an exception depends on the relevant statutory conditions. Directors should not assume that an unpaid appointment, a dormant company or a charitable role automatically removes the reporting obligation.
Where there is uncertainty, the position should be reviewed before the tax return is submitted.
What are the practical implications?
The new requirements may increase the administrative burden for individuals who hold multiple directorships, particularly those involved in groups with several subsidiary or associated companies.
Directors may need to obtain information from each company to confirm the relevant details, including company registration numbers, dividend amounts and shareholding percentages.
This may also increase the time and cost involved in preparing Self-Assessment tax returns, particularly where appointments have changed during the tax year or where some directorships have generated no income.
What should company directors do now?
Before submitting their 2025/26 Self-Assessment tax return, directors should:
Review all directorships held during the tax year, including unpaid appointments and directorships of dormant companies.
Identify each relevant employment, directorship or office and establish whether a separate Employment page is required.
Confirm which companies are close companies for the purposes of the additional reporting requirements.
Gather the necessary company information, including company names, registration numbers, dividends received and the highest shareholding percentage during the tax year, where applicable.
Check whether any statutory exception applies before omitting a required disclosure.
Ensure the tax return is complete and accurate before submission.
Failure to provide information required under the new rules may result in a penalty. HMRC has indicated that a £60 penalty may apply in relevant cases involving missing or incomplete mandatory information.
How we can help
If you are a company director, particularly if you hold directorships across several companies or operate an owner-managed business, we recommend reviewing these requirements before preparing your 2025/26 tax return.
Please contact us if you would like assistance reviewing your directorships, identifying the information required or ensuring that your Self-Assessment tax return is completed accurately and in accordance with the applicable requirements.
This article provides general information based on the requirements described above and is not a substitute for advice tailored to your individual circumstances. The application of the rules and any available exceptions should be considered on a case-by-case basis.
Disclaimer: Whilst we take care to ensure the accuracy of this document, no responsibility for loss incurred by any person acting or refraining from action as a result of this information can be accepted by the authors or firm.
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