Sole traders and directors need to supply more info to HMRC
Are you a sole trader or a director of a close company? HMRC will need additional information from you from April 2025. We’ve summarised the changes.
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):
- Must include the name and registered number of each close company from which they received dividends.
- Must report the total value of dividends received from each close company.
- Must disclose their percentage shareholding in each close company.
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.
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