New HMRC reporting rules for company directors: What you need to know for 2025/26

From the 2025/26 tax year, HMRC has introduced new reporting requirements that will affect many individuals who are company directors.

If you’re a director of a UK company, even if it’s small or you don’t receive any income, this may apply to you.

What’s changing?

Going forward, individuals will need to include details of any directorships in “close companies” within the employment section of their Self Assessment tax return.

A close company is broadly a UK company controlled by five or fewer shareholders, or its directors.

Disclosure is required for all types of company directorships including:

• Holding companies
• Subsidiaries
• Dormant companies
• Companies limited by guarantee

This means the rules will apply to many owner-managed businesses and family companies.

Do I need to report this if I don’t take income?

Yes. The new requirement applies even if you:

• Don’t own shares
• Don’t receive a salary
• Don’t take dividends
• Don’t actively work in the business

As long as you are a director, the disclosure may still be required.

What information is needed?

You’ll need to confirm details such as:

• Company name and address
• Company registration number
• Your shareholding percentage
• Dividends received (including confirming £0 where applicable)

If you are a director of more than one company within a group, you will need to report each directorship separately.

Are there penalties?

HMRC may charge a £60 penalty where required information is not provided.

It’s not yet fully clear how these penalties will be applied, but ensuring accurate disclosure will help avoid unnecessary issues.

How we can help?

We can:

• Advise whether your companies fall within the rules
• Gather the required information on your behalf
• Ensure your tax return is fully compliant

What should you do now?

There’s no immediate action required, but when preparation starts on your 2025/26 tax return, we may ask for some additional information.

If you know you are a director of one or more companies and would like to get ahead, feel free to get in touch.

Need help?

If you have any questions about how these changes affect you, please contact your usual contact or our enquires email and we’ll be happy to help.

Get in touch with your usual Larking Gowen contact or email enquiry@larking-gowen.co.uk.