New dividend rules to impact owner-managed businesses in April

New dividend rules to impact owner-managed businesses in April

New tax reporting obligations are on the way, and they will affect hundreds of thousands of directors across the UK.  If you are a director of a close company or owner-managed business, you will soon have to provide more detailed information about the dividends you receive through your Self-Assessment tax return.  This change takes effect from the 2025/26 tax year and is part of HM Revenue & Customs’ (HMRC’s)efforts to tighten transparency on sh…

Major changes ahead for directors of close companies – New dividend reporting rules from April 2025

From 6 April 2025, directors of close companies will face a notable change in how they report dividend income on their Self-Assessment tax returns. Under the updated rules introduced by HM Revenue & Customs (HMRC), more detail will be required and is a change set to impact an estimated 900,000 directors across the UK.  More paperwork ahead for directors of close companies  Currently, directors reporting dividend income on their Self-Assessment t…