If you’re a Director and shareholder of a “close company,” the wall between your business and personal tax return just got a lot thinner. HMRC is no longer asking for your data—they are demanding it.
The days of voluntary disclosure are over. Here is the new reality for Company Owner-Managers (COMs).
The Mandatory Breakdown from 2025 / 26
On your self assessment tax return you can no longer report a single figure for “UK Dividends.” You must now isolate dividends from your own company and provide specific markers:
- Company Identity: You must list the name and registered number of your close company.
- The Exact Total: The specific amount of dividends drawn from that company alone.
- Control Data: Your highest percentage shareholding held during the tax year.
Why This Matters
What was once a “check-box” exercise is now a mandatory requirement. By forcing you to separate your business dividends from private investments, HMRC is building a precise map of your total remuneration.
This isn’t just more paperwork; it’s a tool for HMRC to flag discrepancies between company profits, director pay, and lifestyle.
The Reality: Transparency is the new standard. Failing to disclose these details or miscalculating your peak shareholding isn’t just an error—it’s a red flag for an audit.
