Personal or Company? I note the comments of a leading tax lawyer now targeting the “influencers” that live on social media, delivering expert advice on really complex issues. Quite how long this will take is unknown but he has had notable success and I wish him well. I happened on a post from a mortgage broker recently delivering complex advice on the inevitable matter of which ’structure’ is best to invest in property. As usual, the list of omissions led to the ultimate objective which is/was to persuade landlords to move to the company structure. Obvious isn’t is? Maybe not. Regular readers know of our position on this and this note is not a hashed up 57th version. In addition to the very serious implications of the new incorporation process from next week, there is another matter to reflect on. HMRC issued an ‘Open Consultation’ “Reporting company payments to participators - modernising the reporting framework” on the 19th. In my long experience, the word ‘modernising’ from the issuing source rarely means a lighter touch. The document is for ‘close companies’ - this being the majority of limited companies. If you have not yet read the document - and you should - it lists requirements which should already be documented but perhaps have not been… ALL transactions between the company and its directors and shareholders must be reported directly to HMRC. Every dividend, every directors loan movement - simply put - every transfer of value between you and your business. If salaries exceed £100 per week HMRC already sees salary via payroll; if VAT registered, it sees sales and purchase levels also. The gap concerns dividends, loans and drawings. Assuming all of the above is already documented etc, these measures will represent an additional - and costly administration burden. The requirement of NI numbers for all shareholders and connected parties raises the issue of proportionality [see previous post] and data privacy. This all builds on MTD and the verification requirements of Companies House. The consultation period runs to 10 June with legislation possible in the Autumn Budget. So the next time you hear someone preach ‘company is best’ - quoting the perennial favourite ’45% is better than 19%’ - reflect on these very likely additions to director responsibilities and maybe conclude that there must be a better way. There is.

Posted by Chris Haley at 2026-03-25 14:08:36 UTC