28/05/2026
Director of a close company? Your tax return is changing.
From the 2025/26 tax return onwards, directors of close companies will need to provide more detail.
So what is a close company? 👇🏻
Broadly, it’s a company controlled by 5 or fewer people, or by people who are both owners and directors. In reality, that includes a lot of family businesses, husband-and-wife companies, and owner-managed limited companies.
What’s changing? 👇🏻
You’ll now need to include:
• The company name and registered number
• Dividends from that close company separately from other dividends
• Your highest shareholding percentage during the tax year
So no, it’s no longer enough to just enter one total dividend figure and move on. This isn’t a new tax. But it is HMRC asking for much more visibility over what directors are taking from their companies.
Our advice? 👇🏻
•Keep dividend paperwork tidy.
•Make sure shareholdings are clear.
•keep company and personal money properly separate.
Because “I’ll work it out at year end” is exactly the kind of approach that causes problems.