Essential Reporting Updates for Business Owners from 2025-26
HMRC has been gradually narrowing the scope of who needs to file a Self Assessment tax return. But for those who remain within the system — especially company directors and business owners — new rules from the 2025–26 tax year will introduce additional reporting requirements that should not be overlooked.
What’s Changing for Company Directors?
From 2025–26 onwards, individuals completing the employment pages of their tax return (SA102) will be required to confirm:
- Whether they were a company director during the year
- Whether the company was a close company
Until now, these fields have been optional, but that will no longer be the case.
For directors of close companies (typically small or family-run UK companies controlled by five or fewer individuals), additional disclosures will be mandatory, including:
- Company name and registered number
- Dividends received from the company — listed separately from other UK dividend income
- The director’s shareholding, based on the highest percentage held at any point in the tax year
These changes will require directors to keep more detailed records, especially if their shareholding changes during the year or they receive dividends from multiple sources.
Reporting Business Start and End Dates
A further update affecting sole traders, partnerships, and trusts will also come into effect from 2025–26.
If a business starts or ceases trading during the tax year, it will be compulsory to report the start and/or end date in the relevant Self Assessment return.
Previously, this information was often provided voluntarily or through supplementary notes. Going forward, it will need to be clearly stated in the return itself.
This applies to:
- Individual Self Assessment returns (SATR)
- Partnership returns
- Trust returns
Why This Matters
These changes are part of HMRC’s broader move towards a more digital and data-driven tax system. By requiring more detailed disclosures, especially for company directors and business owners, HMRC aims to:
- Support the implementation of future digital initiatives such as Making Tax Digital (MTD).
- Improve the quality of data submitted on returns.
- Reduce errors and omissions.
What You Should Do Now
If you are a company director or operate a business, it’s important to:
- Review your company structure and confirm whether your company meets the definition of a close company.
- Keep accurate records of shareholdings and dividends throughout the year.
- Ensure start and end dates for any new or ceasing business activity are clearly documented.
- Speak to your accountant or tax advisor about how these changes may affect your reporting obligations.
Although these changes won’t come into effect until the 2025-26 tax year, preparing early will ensure a smoother transition and help you remain compliant.
Need help preparing for these changes?
Our team can guide you through the new requirements and help ensure your 2025–26 return is accurate and compliant. Get in touch to speak with one of our advisors.
Need Help?
If you’re unsure how these changes might impact you or your business, our team of tax professionals is here to help. We can guide you through the new requirements and ensure you’re ready well ahead of time.
Get in touch with us today for advice tailored to your circumstances.