The information required on the Self Assessment tax return will change for some taxpayers from 6 April 2025. This will impact tax returns for 2025/26 and
future years.
The change affects taxpayers who begin or end self-employment, and directors of close companies. Broadly speaking, a close company is a company controlled by its directors, or by five or fewer ‘participators’, such as shareholders. Most family or private companies are likely to fall within this category.
From April 2025, when a self-employed person begins or ceases trading during the tax year, it will be mandatory to report this, with relevant dates, on the tax return. Previously, this was a voluntary requirement. This additional requirement will impact personal tax returns, partnership returns and trustees’ returns.
For company directors, it becomes mandatory, rather than voluntary, to disclose close company directorships. Directors will also have to state the name and registered number of the close company; the value of dividends received from the close company for the year, declaring this separately from other UK dividends; and the percentage shareholding in that company for the year. If shareholding changes during the year, it’s the figure for the highest percentage shareholding that is needed.
If you would like more information or any advice on this article, please contact us by emailing solutions@ellacotts.co.uk or call us on 01295 250401. You can also contact us here with your query, and we will get back to you.
* Information for readers: This material is published for the information of clients. It provides only an overview of the regulations in force at the date of publication, and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore, no responsibility for loss occasioned by any person acting or refraining from action as a result of the material can be accepted by the authors or the firm.
Business Newsletter – May 2025
