The information required on the Self Assessment tax return has changed for some taxpayers from 6 April 2025. This will impact tax returns for the 2025/26 year as well as all future years.
Who does this change impact?
The update to the Self Assessment tax return impacts taxpayers who begin or end self-employment, and directors of close companies. Close companies are controlled either by directors or by five or fewer ‘participators’, such as shareholders. Most family businesses or private companies will fall into this category.
What are the changes?
From April 2025, where a self-employed individual 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 only 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
- The percentage shareholding in that company for the year
Note: if shareholding changes during the year, then it is the figure for the highest percentage shareholding that is needed.
How will the changes affect your tax filing process?
For those who are self-employed or directors of close companies, there will be more information to report on the Self Assessment tax returns. It is important to ensure you are aware of these changes and that your tax return is accurately completed to avoid delays or penalties.
For self-employed tax payers, it is important to have clear records for the start and end dates of your trading activity during the tax year. Company directors will need up-to-date information on shareholding and dividends received, as well as any changes in figures throughout the year.
Ensuring compliance
To make sure you are fully compliant with these new requirements, it is advised to:
- Keep records of any self-employment activity, including the exact start and end dates of your business operations
- Maintain accurate information about your role as a director of a close company, including shareholding percentages and dividend details
Self Assessment tax return changes can be a tricky area to navigate and getting it right is vital. At Clayton & Brewill we are on hand to support you with these changes and will ensure that your tax return is filed accurately. Get in touch today to find out more.
