From 6 April 2025, some taxpayers have had to provide more information on their Self Assessment tax return. These changes affect returns for the 2025/26 tax year and later years, so they are relevant now for anyone preparing ahead for filing deadlines. For the 2025/26 tax year, online returns must normally be submitted by 31 January 2027.
The changes do not affect every taxpayer in the same way. They are particularly relevant to:
- people who start or stop self-employment during the tax year, and
- directors of close companies.
A close company is broadly a company controlled by five or fewer participators, or by participators who are also directors. In practice, this means many owner-managed businesses, family companies and private companies may fall within the definition.
What has changed for self-employed taxpayers?
If you are self-employed and you begin or cease trading during the tax year, this information now needs to be reported on the tax return with the relevant dates. The requirement applies in personal returns, partnership returns and trustees’ returns. This was previously a voluntary disclosure, but it is now a mandatory part of reporting.
That may sound like a small technical detail, but it matters. If your business started mid-year, stopped part-way through the year, or changed status during the year, HMRC now expects that timeline to be clearly reflected in the return. For self-employed taxpayers, it means record-keeping around trading dates is now more important than before.
What has changed for directors of close companies?
There are also new requirements for directors of close companies. From the 2025/26 tax return, directors of close companies must provide more information, including the company’s name and registration number. HMRC has confirmed that new boxes have been added to the return for this purpose.
In addition, directors will need to separately identify dividends received from their close company, rather than including them only within general UK dividend figures. HMRC’s 2025 explanatory material says the return now requires close company directors to declare, separately from other UK dividends, the amount received from their own companies.
The updated rules also require information about the individual’s shareholding in that close company. Where the shareholding changes during the year, the return requires the highest percentage shareholding for that year. This means directors need more than just a rough idea of what they drew from the company — they need accurate supporting figures for dividends and ownership.
Why this matters in practice
For affected taxpayers, the main impact is simple: more detail now needs to be captured and reported correctly. That means returns may take a little more preparation, particularly where business activity changed during the year or where a director has income coming from a close company.
For self-employed taxpayers, it is now especially important to keep a clear record of:
- the exact date trading started, if you began self-employment during the year
- the exact date trading ceased, if you stopped during the year
- any other changes that could affect how the tax year is reported.
For directors of close companies, it is important to have:
- the company name
- the registered company number
- accurate records of dividends received
- up-to-date information on shareholding levels, including any changes during the year.
A good time to get your records in order
These changes are not necessarily complicated, but they do make accuracy more important. If the extra information is missing, unclear or inconsistent, it could delay the filing process or increase the chance of amendments later. For anyone affected, now is a good time to review how records are being kept and whether the right information will be available when the 2025/26 return is prepared.
If you are self-employed, have started or stopped trading, or are a director of a close company, it is worth checking early what extra information your next Self Assessment return will require. A small change on the form can create a much bigger issue if the supporting details are not ready when filing season arrives.
If you think these changes may affect your next tax return, get in touch with EVLAteam and we’ll help you make sure everything is prepared correctly and on time.
