If you’re a director/shareholder of a limited company, there are two important developments on the horizon that are worth having on your radar now.

1. More detail required on 2025/26 tax returns for close companies

From 6 April 2025, HMRC has introduced new disclosure requirements on personal tax returns for individuals who are directors of close companies (which, in simple terms, covers most owner‑managed and family‑run companies).

When completing your 2025/26 Self Assessment tax return, you’ll need to give HMRC more detail than before, including:

• Confirming that you were a director of a close company
• The company name and registration number
• Dividends received from your own company, shown separately from other dividends
• The highest percentage shareholding you held during the tax year (even if this changed during the year)

Previously, dividends were reported as a single total figure. From 2025/26 onwards, HMRC wants a clearer picture of where that income is coming from and how much of the company you control.

If we are your Accountants and we do your personal tax return then we will be the magic fairies doing all of this for you in the background.

2. Government consultation: reporting payments between companies and owners

Alongside the tax return changes, the government has also launched a consultation that could significantly expand reporting obligations for close companies in future.

HMRC is consulting on whether all transactions between a company and its participators (owners/shareholders) should be routinely reported to them.

This could include:

• Dividends
• Loans (including director’s loan accounts)
• Cash withdrawals
• Asset transfers between the company and owners
• Other payments or value transferred

The proposal would exclude salary already reported via payroll (RTI), but otherwise aims to give HMRC much greater visibility over how money moves between companies and their owners.

At this stage:

• This is a consultation, not law
• It closes on 10 June 2026
• HMRC will decide next steps after reviewing responses

The government’s stated aim is to reduce errors and close what it sees as a tax “grey area” in small, owner‑managed businesses.

So… what does this mean for you?

For now, nothing.
But it does mean:

• Good record‑keeping is becoming more important than ever
• Dividends and director transactions need to be properly documented
• The casual “we’ll sort it later” approach to loan accounts is becoming riskier

As your accountants, this is exactly the sort of change we’re tracking in the background for you. We’ll ensure your tax returns include the right information and will flag any changes that materially affect how your company needs to operate.

If you’re ever unsure whether a payment should be treated as salary, dividends, a loan, or something else – please ask before moving money. It’s always easier (and cheaper!) to do it right first time.