Company directors already within self assessment will soon face additional reporting requirements, as HMRC introduces new disclosure rules from the 2025/26 tax year.
Under the changes, directors who already submit a self assessment tax return will need to provide more detailed information about each directorship they held during the tax year. The update does not bring all directors into self assessment automatically, but it does expand the information required from those already filing returns or required to file for other reasons.
The new rules mean a separate employment section will need to be completed for every directorship held. Taxpayers will also be asked to confirm whether they acted as a director and whether the company involved was classified as a “close company”.
Broadly speaking, a close company is one controlled by five or fewer shareholders, or by shareholders who are also directors. Many owner-managed and family-run businesses are likely to fall within this definition.
Where a directorship relates to a close company, additional details must now be disclosed on the tax return, including the company name, company registration number and the percentage of share capital held—even where no shares are owned.
For advisers and taxpayers alike, the changes are likely to increase the level of information gathering required ahead of filing season, particularly where individuals hold multiple directorships or have interests in businesses not already known to their accountant.
HMRC has also indicated that penalties may apply where the required information is omitted. A £60 penalty has been referenced, although the practical application of this has not yet been fully clarified.
The changes reflect HMRC’s broader push for greater transparency around company ownership and directorship structures, particularly within closely controlled businesses.
For directors already within self assessment, the key message is preparation. Ensuring all directorships—and the relevant company details—are identified early is likely to help avoid delays, errors or potential penalties once the new reporting requirements take effect.
