New dividend disclosures for close company directors explained

CREATED BY HELEN BEAUMONT Published: 24/06/2026 @ 09:00AM #SA102 #dividenddisclosures #closecompany #dividends #directors #newrules

Dividend disclosures on the new SA102 boxes can feel fiddly at first, but the key point is simple. If the person is a director of one close company, the reporting follows that company, not every company in which they happen to own shares ...

What are the latest changes in dividend disclosures for close company directors?

Dividend disclosures in the new SA102 boxes are intended to capture information about a director's relationship with a close company, not every shareholding they may hold elsewhere. That distinction matters, particularly where a person is a director of one company but only a shareholder in another.

The tax return requires additional details if the individual served
as a director of a close company during the tax year!

The idea behind HMRC dividend reporting is fairly straightforward: HMRC wants to see the dividends the company actually paid, together with the person's interest in that company.That means close company dividends received from another company are not automatically pulled into the new director boxes just because the person owns shares in that company.

If a person is only a director of B Ltd and merely a shareholder in A Ltd, the dividend disclosure question points to B Ltd, not A Ltd. The director-shareholder connection has to be with the company being reported.

This is where a careful reading of the rules helps!

The new disclosure requirement is tied to the company for which the individual was a director. If that company is a close company, the return asks for the amount of dividends received from it and the percentage of share capital held in it. Dividend disclosures are therefore company-specific, not a general summary of all personal shareholdings.

For many, the practical approach will be to consider the directorship first, then determine whether that company is close. If it is, the relevant boxes should reflect that company only. So, if the person received dividends from A Ltd but was not a director of A Ltd, those dividends would not normally belong in the new SA102 director boxes simply because A Ltd is connected elsewhere in the group structure.

That approach also aligns with HMRC's
dividend reporting logic!

The regime doesn't require reporting dividends from all group companies. Instead, it focuses on the close company associated with the directorship, so dividend disclosures should align with the relevant appointment.

The shareholding question follows the same pattern. The percentage entered should relate to the share capital of the close company in which the person was a director and should be calculated by reference to the nominal value, not merely the number of shares.

That detail may sound technical, but it matters when different classes of shares carry different nominal amounts. Dividend disclosures can look simple on the surface, yet the calculation must be grounded in the appropriate share capital measure.

In short, a director shareholder needs to report the dividends and holdings that relate to the company they actually direct.

If the individual only directed B Ltd, the boxes should normally relate to B Ltd, not to A Ltd, simply because A Ltd paid dividends. That is the cleanest reading of the new Dividend Disclosures Rules.

This keeps the self-assessment tax return aligned with the intent behind the change.

Until next time ...

HELEN BEAUMONT
Join my mailing list! Click here and be one of the first to know when I publish a new blog post!

Share the blog love ...

Buffer Facebook Twitter Linkedin Pinterest WhatsApp #SA102 #dividenddisclosures #closecompany #dividends #directors #newrules

About Helen Beaumont ...
Helen brings the personal tax planning experience of the top 20 tax companies to Essendon. Formerly of MacIntyre Hudson (with 45 offices nationwide), Helen worked at Chancery for more than 10 years before joining Essendon as the personal tax specialist. Tax Planning can make a considerable difference to your tax liability. Helen has specialist knowledge and experience in tax planning and uses every opportunity to minimise your tax bill is utilised. By analysing your investments, income, profit and expenditures, Helen will provide strategic tax planning expertise that could offer significant savings, whilst delivering clear, honest advice and guidance. When Helen is not at Essendon she spends time with her young son and likes going on long walks with the family dog.

More blog posts for you to enjoy ...
		Why splitting a business to avoid VAT can backfire badly Splitting a business to avoid VAT may look clever, but it often isn't. HMRC can join entities together where links exist and challenge the arrangement. Consider contracts, commercial reality, and long-term costs before acting...
		Three legitimate ways to reduce Capital Gains Tax A few sensible moves can help someone reduce Capital Gains Tax without taking risks. Using the capital gains allowance, sheltering investments in ISAs or pensions, and planning sales carefully all matter. It is practical tax ...
		Welcome to the summer of VAT complexity and 5% surprises This summer's VAT complexity is not just about cheaper tickets and meals. It also brings fresh admin, tricky boundaries, and significant VAT compliance work for businesses. A small saving for families, perhaps, but a big exer...
		Why the middle-income trap matters in the salary sacrifice cap The salary sacrifice cap sounds as though it is aimed at high earners, but the detail creates a middle-income trap for everyday savers and SMEs. Below £2,000, the system still works well; above that, NI costs, payroll pressur...
		Final P11D deadline for HMRC expenses and Benefits in Kind filing The P11D deadline for HMRC expenses remains important this year, but bigger changes are coming soon. Employers using the old system should file on time, while others should start preparing for payroll reporting of Benefits in...
		Tax return changes put extra pressure on company directors Tax return changes are introducing a new admin for company directors, particularly regarding shareholdings and close companies. The rules do not force everyone into self-assessment, but they do make existing returns more deta...
		Employers' National Insurance increase and the squeeze on business budgets The Employers' National Insurance increase is making payroll more expensive, and that ripples through hiring, wages and investment. Businesses are feeling the strain, especially where margins are thin. It is a simple change w...
		HMRC Taking A Good Look At Savvy Online Sellers HMRC's new data sharing initiative, which aligns with the OECD's global objective to tackle tax evasion, has been met with mixed reactions from online sellers ......

Other bloggers you may like ...
		Why 24-hour lead capture matters for small business growth Posted by Steffi Lewis on https://www.yourbot.uk Potential customers no longer browse websites only during office hours. Whether they're researching suppliers during a lunch break, comparing services ...
		Why small business owners should stop doing everything themselves Posted by Sarah Hannaford on https://blog.sarahpasolutions.co.uk Running a business often begins with wearing every hat yourself. From answering emails and managing accounts to marketing, customer service and admini ...
		What happens if nobody notices you're out of action? Posted by Steffi Lewis on https://www.yourping.uk Living alone offers freedom, independence and privacy, but it also raises a question many people would rather avoid: what happens if nobody notices yo ...
		Why being recognised for doing what you love matters Posted by Davina Farrer on https://blog.joindavina.co.uk There's something deeply rewarding about being recognised for the work you do. Recently, I was honoured to receive a Silver Award for Customer Service ...