Date posted: 1st Jun 2026
For the 2025/26 tax year, HMRC is placing increased focus on dividend income and shareholdings reporting for those that hold shares in close companies.
With plans afoot for HMRC to consult on the reporting of close company payments to shareholders, close company shareholders will need more support with their taxes and reporting to HMRC going forward.
Increased HMRC Focus on Directors and Shareholders
It is important that director-shareholders consider:
- Dividend income
- Shareholdings in close companies
- Director’s loan accounts
- Share transfers or changes in ownership
- Capital distributions and gains
HMRC can compare your personal tax return with company accounts, payroll submissions, and Companies House records, meaning inconsistencies are more likely to be identified, particularly with the rise of AI.
Dividends Are More Complex Than Many Realise
With reduced dividend allowances and changing tax thresholds, many directors are paying more tax on dividend income than in previous years.
Common mistakes include:
- Incorrect dividend figures
- Missing dividend income
- Errors between company accounts and personal tax returns
- Incorrect allocation of dividends between spouses or shareholders
Even accidental errors can result in HMRC enquiries.
Why Professional Tax Advice Matters
Using our specialist tax team helps ensure your tax return is accurate, compliant, and tax-efficient.
We help directors and shareholders:
- Structure salary and dividends efficiently
- Review director loan accounts
- Ensure dividend reporting is correct
- Identify potential HMRC risk areas
- Reduce the risk of penalties and enquiries
As tax reporting becomes more complex, our professional advice can save significant time, stress, and potentially unnecessary tax costs.
Speak to Our Tax Team
If you are a company director or shareholder currently completing your own tax return, now is the ideal time to review whether you are reporting everything correctly for 2025/26.
Our tax specialists can help you stay compliant, minimise risk, and ensure your tax affairs are handled efficiently.
