Company directors completing a Self Assessment return should be aware of new reporting requirements applying from the 2025/26 tax year. The rules may affect directors even where an appointment was unpaid or the company was dormant.
Who must report a directorship?
Individuals who are already required to file a Self Assessment return and who held a directorship in a UK company at any point during the tax year will generally need to disclose that appointment on the SA102 Employment pages.
HMRC have now clarified that this applies even where the director received no salary, dividends, benefits or other remuneration, and will include directorships in dormant companies. Directors can therefore no longer assume that unpaid directorships fall outside the scope of the new rules and do not require to be included on the Employment pages.
What additional information is required for close-company directors?
The Income Tax (Additional Information to be Included in Returns) Regulations 2025 also require directors of close companies to provide further information in their Self Assessment return from 6 April 2025. A close company is broadly one controlled by five or fewer shareholders, or by its directors. The details required include:
- The name of the close company;
- The company registration number;
- The amount of dividends received from that company during the tax year; and
- The director’s highest percentage shareholding in the company during the tax year.
Are there any exceptions?
Limited exceptions apply. These include certain unpaid directors of registered charities and community interest companies who did not receive, and were not entitled to receive, income or distributions from the organisation or a connected company.
What should directors do now?
Before completing the return, directors should compile a list of every UK company directorship held during the tax year—including unpaid appointments and roles in dormant companies—and ensure that all applicable details are reported completely and accurately on their Self Assessment return. A £60 penalty may apply where information required under the new rules is not provided.
Given the breadth of the reporting requirements and the practical issues that may arise, particularly for those with multiple directorships, affected taxpayers may wish to discuss their circumstances with their usual KPMG contact.
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