𝐒𝐨𝐥𝐞 𝐓𝐫𝐚𝐝𝐞𝐫𝐬 𝐚𝐧𝐝 𝐃𝐢𝐫𝐞𝐜𝐭𝐨𝐫𝐬 𝐍𝐞𝐞𝐝 𝐭𝐨 𝐒𝐮𝐩𝐩𝐥𝐲 𝐌𝐨𝐫𝐞 𝐢𝐧𝐟𝐨 𝐭𝐨 𝐇𝐌𝐑𝐂

If you’re a sole trader, director or shareholder of a ‘close company’, new legislation means there’s additional information you’ll need to supply to HM Revenue & Customs (HMRC).

What information will be needed?

From 6 April 2025, sole traders and owner-managed businesses (OMBs) will need to report specific additional information to HMRC as part of their self-assessment tax returns.

Sole traders: Will need to report the exact date their business commenced or ceased trading during the tax year.

Company directors and shareholders in (of close companies):

1. Must include the name and registered number of each close company from which they received dividends.

2. Must report the total value of dividends received from each close company.

3. Must disclose their percentage shareholding in each close company.

4. 
   

If the shareholding changed during the year, they must report the highest percentage held at any point during the tax year.

A close company is defined as one controlled by its directors or by five or fewer shareholders.

Talk to us about about meeting your compliance obligations

If you’re a sole trader or the director of a close company, do come and talk to the team about HMRC’s new requirements and what you’ll need to report.