The deadline of 6 July 2016 for online filing of share scheme annual returns is fast approaching.
The deadline of 6 July 2016 for online filing of share scheme annual returns is fast approaching.
HMRC required all employee share schemes to be registered online with effect from July last year. An annual return must be filed online each year for any existing or new employee share schemes registered in the 2015/2016 tax year.
As HMRC does not send out any reminders and there are automatic penalties for late-compliance, we recommend filing your online annual return without further delay. This can be carried out by the company or any agents authorised to act on your behalf.
What needs to be done?
Annual returns should be filed using HMRC’s Employment Related Securities (ERS) Online Services. This forms parts of Employer’s PAYE online services.
Any employee shares schemes should have already been registered with HMRC online. This includes both tax-advantaged share schemes such as EMIs, CSOPs, SIPs and SAYE but also any non-tax advantaged or ‘unapproved’ schemes. This will have been necessary in order to notify HMRC of any new share options granted. However, if you are in any doubt as to whether the scheme is registered, you can check this by logging onto HMRC Online, or, you should seek further advice.
Each employee share scheme requires a separate annual return. Tax-advantaged schemes such as EMIs, CSOPs, SIPs and SAYE, each have their own template form.
All ‘reportable events’ that have taken place in the 2015/2016 tax year must be notified to HMRC on the annual return. This includes the grant of new options, exercise of options, acquisition of shares, adjustment of options, surrender of options, changes to the restrictions on shares and disqualifying events, amongst many other things. If you are in any doubt as to whether to report a particular event, you should seek further advice.
In any event, even if there has not been any activity in the previous tax year, a ‘nil return’ should be submitted.
If you would like any advice regarding online submission of annual returns, please do not hesitate to contact Lisa Hayward.
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The content of this article is for general information only. It is not, and should not be taken as, legal advice. If you require any further information in relation to this article please contact the author in the first instance. Law covered as at June 2016.