Finance Act 2024 introduced powers to enable the collection of additional data on income tax self-assessment and allowed for HMRC to specify the particular information required.
HMRC now have powers to collect additional information from company directors and, as a result, the 2025/26 self-assessment tax returns will require the following information:
- If the taxpayer was a director of a company;
- If the company was a close company (broadly those with five of fewer shareholders);
- The company’s name and registration number;
- Dividends the taxpayer received from the close company during the tax year; and
- The highest percentage shareholding that the taxpayer held during the tax year.
Combined with the above change and more detailed disclosure requirements for company accounts, we can see that HMRC will have increased access to information on dividends and director transactions. It will pay to make sure that dividend procedures are compliant. Please do contact us if we can assist in this regard.
