--- title: Close company directors face new HMRC detail requirements in 2026 description: HMRC introduces new reporting requirements for close company directors in 2025/26, enhancing transparency on dividends and shareholdings. image: https://blog.shorts.uk.com/hubfs/Close%20company%20directors%20face%20new%20HMRC%20detail%20requirements%20in%202026%20blog%20header.png --- [![Shorts_logo_White](https://blog.shorts.uk.com/hubfs/New%20Site%202018/Shorts_logo_White.svg "Shorts_logo_White")](https://www.shorts.uk.com/) - [International Reach](https://www.shorts.uk.com/praxity/) - [Our Services](https://www.shorts.uk.com/accountancy/) - Services - [Accountancy Services](https://www.shorts.uk.com/accountancy/) - [Business Taxes](https://www.shorts.uk.com/business-taxes/) - [Corporate Finance](https://www.shorts.uk.com/corporate-finance/) - [Private Client](https://www.shorts.uk.com/private-client/) - [Wealth Management](http://www.shortsfs.com/) - [Employee Ownership Trusts](https://www.shorts.uk.com/eot/) - Specialist Services - [Radius - R&D tax credits and patent box](https://www.shorts.uk.com/radius) - [Genus - Management information](https://www.shorts.uk.com/genus) - [About](https://www.shorts.uk.com/about/) - [Awards](https://www.shorts.uk.com/about/awards/) - [Team](https://www.shorts.uk.com/about/team/) - [Working at Shorts](https://www.shorts.uk.com/about/working-at-shorts/) - [Careers](https://www.shorts.uk.com/careers/) - [Case Studies](https://www.shorts.uk.com/case-studies/) - Insights - [News](https://blog.shorts.uk.com) - [Resource Library](https://info.shorts.uk.com/resource-library) - [COVID-19 info HUB](https://www.shorts.uk.com/covid-19-information-hub/) - [Contact](https://www.shorts.uk.com/contact/) - [Onvio Portal](https://www.shorts.uk.com/onvio-client-portal/) [Blogs & News](https://blog.shorts.uk.com/) > [Audit](https://blog.shorts.uk.com/topic/audit) # Close company directors face new HMRC detail requirements in 2026 Steven Strawther - 9 June 2026 ###### Select topic - Please Select - [ Audit ](https://blog.shorts.uk.com/topic/audit) [ Business Taxes ](https://blog.shorts.uk.com/topic/business-taxes) [ Radius – R&D Tax Relief & Patent Box ](https://blog.shorts.uk.com/topic/radius-rd-tax-relief-patent-box) [ Corporate Finance ](https://blog.shorts.uk.com/topic/corporate-finance) [ GENUS Management Accounts ](https://blog.shorts.uk.com/topic/genus-management-accounts) [ VAT ](https://blog.shorts.uk.com/topic/vat) [ Private Client ](https://blog.shorts.uk.com/topic/private-client) [ Payroll ](https://blog.shorts.uk.com/topic/payroll) [ EOT ](https://blog.shorts.uk.com/topic/eot) [ International Taxes ](https://blog.shorts.uk.com/topic/international-taxes) ![featured image](https://blog.shorts.uk.com/hubfs/Close%20company%20directors%20face%20new%20HMRC%20detail%20requirements%20in%202026%20blog%20header.png) If you run your business through a limited company, chances are HMRC is about to take a closer look at how you pay yourself. From the 2025/26 tax year onwards, directors of close companies will need to include significantly more detail on their Self-Assessment tax returns, particularly around shareholdings and dividend income. This is not a tweak at the margins; it’s a deliberate push by HMRC to join the dots between ownership, control and profit extraction. ## **What is a “close company”?** In tax terms, a close company is broadly one that’s: In practice, this definition incorporates most [owner‑managed](https://www.shorts.uk.com/accountancy/owner-managed-business-accounts) and family‑run companies, from one‑person consultancies to husband‑and‑wife trading companies. If you’re a director *and* a shareholder in your own company, you should assume these rules apply unless told otherwise. ### **What info did directors previously submit?** Until now, directors simply reported their total dividend income on their tax return. Dividends from your own company, dividends from quoted shares, dividends from funds, etc., were all bundled together in one number. HMRC could see *what* you received, but not where it came from. For a tax authority increasingly focused on data and risk‑profiling, that opacity needed addressing. ## **What do directors need to report in the 2025/26 tax year?** From the 2025/26 Self-Assessment return (filed from April 2026 onwards), directors of close companies must disclose additional, company‑specific information. For *each* close company you’re involved with, you’ll need to report: Even if no dividend was paid, the company still needs to be reported, with a dividend figure of £0. ### **Why is HMRC is doing this?** HMRC wants more visibility over how owner-managers extract profits from their businesses. These changes should also help them close tax gaps and reduce errors and under-reporting. By linking dividend income directly to specific companies, and overlaying that with ownership percentages, HMRC gains far clearer visibility over how owner‑managers structure their remuneration. It’s also part of a broader shift towards “nudge‑based” compliance, where more detailed returns reduce the need for later enquiries. ## **The cost of missing information** These disclosures don’t affect the amount of tax you pay, but HMRC still cares whether the boxes are filled in. From 2025/26 onwards, HMRC can charge a £60 fixed penalty per missing item where the required information is omitted from a return If you miss the company name *and* the shareholding percentage, that’s potentially two penalties (£120), even if the tax calculation itself is correct. ## **Where directors will find problems** Our team have found these recurrent issues with our clients: - **Changing shareholdings: **If shares were transferred, issued or bought back during the year, you must report the maximum percentage held at any time. Neither an average nor a year-end position will be accepted - **Multiple share classes: **Calculating a “percentage shareholding” is difficult in cases where different shares carry different rights. HMRC guidance is still evolving here, so careful record‑keeping is key. - **Unpaid directors: **Even if you take no salary and no dividends, you may still need to complete the relevant sections simply because the close‑company disclosures now sit on the employment pages of the return. ## **When do these changes come into effect?** These changes apply from 6 April 2025, meaning: - First affected Self-Assessment Return: 2025/26 - Filing deadline: 31 January 2027 ## **What you should do now** 1. Make sure your dividend paperwork is complete and consistent. 2. Keep a clear record of shareholdings throughout the year, not just at 5 April. 3. Flag early if your company has unusual share rights or mid-year changes.  And, of course, get advice before assuming last year’s approach still works this year. ## **Summary of the required new disclosures** | New Required Disclosure | Description | | --- | --- | | Close company name | Must be reported for each close company | | Company Registration Number | Mandatory identifier | | Dividend amount received | Reported separately for each close company | | Highest shareholding % | Highest % held during the year, even if reduced later | | Director status | Mandatory disclosure of whether taxpayer was a close company director |   ## **In summary** For most directors, the extra reporting will be manageable with good records and forward planning. But it is new, it is mandatory, and it does come with penalties if ignored. If you’re unsure how these changes affect you, or want us to handle the detail while you carry on with running the business, Shorts' [Accountancy Services team](https://www.shorts.uk.com/accountancy) are here to help.  ![author](https://blog.shorts.uk.com/hubfs/Team%20profile%20round%20images/Steven%20Strawther%20Round%20circle.png) #### Steven Strawther I deal with all aspects of personal tax compliance and since joining Shorts I have gained valuable experience in private client advisory and planning opportunities. I have been instrumental in refining the personal tax compliance process and implementing digital solutions to provide clients with an efficient personal tax service. [View my articles](https://blog.shorts.uk.com/author/steven-strawther) Tags: [Audit](https://blog.shorts.uk.com/topic/audit) Share this on - - - [Questions? 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