Company directors who complete a self-assessment tax return should be aware of new mandatory reporting requirements that came into effect from the 2025-26 tax year. The changes mainly affect directors of close companies, including many owner-managed and family businesses.

Previously, directors could voluntarily identify themselves as directors of close companies on the employment pages (SA102) of their tax returns. The new requirements make this information mandatory and introduce additional disclosures to help HMRC identify income received from companies controlled by their directors.

Affected directors must provide the name and registered number of the close company, the amount of dividends received from the close company during the tax year, and the highest percentage of the close company’s share capital held during the relevant tax year.

A close company is broadly one controlled by five or fewer participators, or by participators who are directors. A participator is someone with an interest in the company’s capital or income, usually a shareholder.

The changes are intended to give HMRC a clearer picture of the relationship between directors and their companies, particularly where individuals receive dividends from businesses they own or control.

Importantly, the new rules do not mean that every company director must submit a tax return. Directors who are not otherwise required to file a self-assessment return do not have to register solely to provide this additional information.

Directors who already file returns should ensure they have the relevant company details, dividend figures and shareholding information available when preparing their 2025-26 return which is due to be submitted by 31 January 2027 at the latest.

Taxpayers who need to pay the High Income Child Benefit Charge (HICBC) for 2025-26 may be able to pay it through PAYE rather than completing a self-assessment tax return solely to report the charge.

The HICBC applies where an individual or their partner receives Child Benefit and the individual’s adjusted net income exceeds £60,000. The amount payable increases with income, reaching the full amount of Child Benefit when adjusted net income reaches £80,000.

The charge can also apply where another person claims Child Benefit for a child living with you and contributes at least an equal amount towards the child’s upkeep, regardless of whether the child is your own.

The charge can be paid through self-assessment or PAYE, depending on the taxpayer’s circumstances. HMRC allows eligible taxpayers to pay through PAYE by adjusting their tax code. Taxpayers can register using HMRC’s online service. Once registered, HMRC will adjust the tax code and notify the taxpayer and their employer or pension provider, where relevant. For the 2025-26 tax year, this must be done before 31 January 2027.

Those who have previously submitted self-assessment returns solely to pay the HICBC can also switch to PAYE. They will need to contact HMRC by telephone to leave self-assessment and register for PAYE payment. 

Anyone who must submit a tax return for another reason, such as self-employment income or taxable investment income, must continue to report and pay the HICBC through self-assessment.

Choosing to pay the HICBC through PAYE can simplify tax reporting for eligible taxpayers, avoiding the need to file a self-assessment tax return solely because of the charge.

You may have to pay Income Tax on your pension if your total annual taxable income exceeds your Personal Allowance. This applies whether you receive the State Pension, a workplace pension or a personal pension.

Your total taxable income can include the basic or new State Pension, Additional State Pension, private pension payments, earnings from employment or self-employment, taxable benefits and income from savings, investments or property.

The amount of tax you pay depends on your total income and the Income Tax rates and allowances that apply to you. You should therefore consider all your taxable income, rather than looking at your pension payments in isolation.

If you take money from a private pension as a lump sum, you may also have to pay Income Tax on amounts exceeding your available lump sum allowances. Taking a large lump sum could push you into a higher tax band and leave you with additional tax to pay at the end of the tax year.

If your pension provider pays you money owed from previous tax years as a single lump sum, you may temporarily pay too much tax. If this happens, you can ask HMRC to recalculate your tax using a written breakdown (usually called a 'payment schedule') from your pension provider showing how much was due for each tax year.

HMRC has revealed that it had £42.8 billion in outstanding tax debt at the end of March 2025, equivalent to 5% of total tax receipts. The figures appear in its corporate report, The HMRC tax debt strategy – update.

The report also highlighted progress in recovering unpaid tax, with HMRC resolving £48.7 billion of tax debt in the first two quarters of 2025-26, compared with £21.8 billion during the same period in 2019-20. HMRC said the outstanding debt balance had fallen as a proportion of tax receipts, despite growth in the tax base.

HMRC’s Tax Debt Strategy, published in October 2023, set out 4 strategic pillars to guide their approach to manage and resolve tax debt. The strategy is focused on preventing tax debt, tailoring interventions to taxpayers’ circumstances, improving debt recovery and being adaptable. Measures include payment reminders, improved and expanded digital services, more use of private sector debt collection agencies and additional debt management staff.

HMRC is also increasing its focus on older debts. The report states that debt more than a year old and not covered by a managed payment arrangement rose from £5.3 billion in 2020 to £18.8 billion in 2025. 

HMRC is also working to provide tailored support to taxpayers experiencing financial hardship or who have personal difficulties. Support can range from an extended time to pay arrangement to receiving one-to-one dedicated extra support.
 

Cryptoassets can create unexpected tax liabilities. HMRC’s guidance highlights several areas where mistake can be made.

• Assuming crypto-to-crypto exchanges are tax-free. Exchanging one type of cryptoasset for another can count as a disposal for Capital Gains Tax (CGT) purposes.
• Forgetting that spending crypto can trigger CGT. Using tokens to buy goods or services may count as disposing of them.
• Assuming all gifts are tax-free. Giving cryptoassets away can trigger CGT, although gifts to a spouse or civil partner are generally treated differently.
• Ignoring income from mining or staking. Cryptoassets received from mining, staking, lending or decentralised finance (DeFi) may be taxable as income, depending on the circumstances.
• Overlooking employment-related crypto payments. Tokens received from an employer may be subject to Income Tax and National Insurance contributions.
• Failing to keep transaction records. Investors should retain details of purchases, disposals, quantities, dates, costs and values. Exchange reports may not contain everything needed for tax calculations.
• Using incorrect valuations. Transactions and gains must be calculated in pounds sterling, using an appropriate and consistent valuation method.
• Failing to report taxable income or gains. Investors should check whether they need to report cryptoasset activity on a self-assessment tax return. Those who discover unpaid tax from earlier years can use HMRC’s cryptoasset disclosure service.