The rules around a tax return for directors have recently been clarified by HMRC, particularly for directors of close companies. The changes apply to Self Assessment returns for the 2025/26 tax year onwards and mean that some directors now need to provide more information about the companies they are involved with.
It is important to note that becoming a company director does not automatically mean you need to complete a Self Assessment return. These additional reporting requirements apply to directors who already have a Self Assessment filing obligation.
What has changed for a tax return for directors?
Previously, Self Assessment returns included questions about whether someone was a director of a close company, but completing the relevant information was not mandatory in the same way. The rules have now been strengthened, so directors of close companies who file a return must provide specific details.
For each relevant close company, the information can include:
- The company name
- The company’s registered number
- Dividends received during the tax year
- The percentage of shareholding held
Having these details ready can make completing your return much easier and reduce the chance of errors.
What if the director receives no salary or dividends?
One area HMRC has specifically clarified is the position of directors who receive no pay or who do not own shares in the company.
Even where a director is unpaid or has a zero shareholding, the relevant sections still need to be completed when the director is required to submit a Self Assessment return. Where there is no dividend income or shareholding, the appropriate boxes should be completed with 0, where applicable. Simply mentioning an unpaid directorship in the additional information section is not sufficient.
The requirement can also apply to directors of dormant close companies. Therefore, an inactive company should not automatically be treated as having nothing to report.
What about charities and Community Interest Companies?
There is an important exception for certain directors of registered charities and Community Interest Companies (CICs).
HMRC has confirmed that the additional close-company information does not need to be completed where the director has not received, or become entitled to receive, employment income, dividends or another relevant distribution from the organisation or connected companies.
This clarification should make the position easier to understand for people who have directorships in different types of organisations.
Why accurate reporting matters
Getting the information right is important. HMRC has highlighted that a £60 penalty may apply where the close-company boxes are completed incorrectly.
Directors should therefore keep useful records throughout the year, including dividend information, shareholdings and company registration details. The GOV.UK Self Assessment guidance can also help you check whether you need to submit a return.
Get help with your tax return
The updated rules may be straightforward for some directors, but things can become more complicated when you have several directorships, dividend income or other sources of income.
A tax return for directors needs to be completed carefully, particularly where close-company reporting applies. If you are unsure what information you need to provide, Care Accountancy’s Self Assessment tax return service can help you understand your requirements and prepare your return accurately.
For professional support with your tax return for directors, contact Care Accountancy to discuss your circumstances.
This article is for general information only and reflects guidance available in September 2026. Tax rules and HMRC guidance can change, and individual circumstances may differ.
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