HMRC to be given further powers to collect information regarding dividends and number of hours worked by employees

New rules on dividend disclosure from April 2025 will mean anyone involved with an owner managed business will need to use their self assessment tax return to split out the amount of dividend income received from their own companies from other dividend income. They will also need to include the percentage share they hold in their own companies.

Draft legislation also confirms that employers will be required to provide detailed information about how many contracted hours are worked by employees using real time information PAYE reporting.

This forms part of wider attempts to clamp down on tax evasion with better ‘compliance’ cited as an important objective.

Finally, taxpayers who are self-employed will need to provide information on the start and end dates of their self-employment.

There will be a penalty of £60 for failure to comply with the legislation.