How To Avoid The New HMRC SA102 Penalties For Company Directors
9th July, 2026
From the 2025/26 tax year HMRC have introduced new reporting requirements which affect the SA102 Employment pages of a Self Assessment tax return. The employment pages of the self-assessment now require company directors to provide more specific information and mandatory disclosures regarding dividends received and ownership interest.
What is a Close Company
A close company is a company which is controlled by five or less shareholders or directors, this covers most owner managed business and family run companies.
What are the new SA102 disclosure requirements?
The new requirements represent a significant increase in disclosures for company directors.
The key changes relate to the introduction of sub-boxes 7.1 – 7.4 which requires directors to separately identify the following details for each close company:
SA102 now requires the following details for each close company:
- Close company name
- Company registration number
- Dividend income received
- Percentage shareholding held
A separate SA102 employment page must be completed for each directorship.
What if I do not receive any dividends in the year?
It is important to note that even if no dividends have been declared the information still needs reporting. Similarly, if the director does not hold the shares directly the shareholding disclosure still needs to be completed.
What if I fail to report this information?
Failure to report this information can lead to a penalty of £60. It is important to note that the dividends received still need to be reported on the SA100, the SA102 provides HMRC with more detailed information.
In Summary
Directors of close companies must ensure accurate recording of dividends, shareholdings, company details and any directorships held and disclose separately on their self assessment return. Preparation ahead of the 2025/26 filing deadline will help avoid any errors or potential penalties.
