Annual reporting for employee share and share option plans.

Did you know? All reporting for the tax year ending 5 April 2017 must be done through the HMRC  Employment Related Securities (ERS) online service.

This is available for companies to register with now and it forms part of the PAYE online service. All annual returns must be filed by 6 July 2017.

Late filing penalties will automatically apply for noncompliance and approved share schemes may lose any eligible tax advantages if they have not been registered online by 6 July 2017. HMRC no longer issue notices to file or paper reminders for share schemes.

What needs to be reported?

Any share transactions involving employees will need to be reported online on an Employment Related Securities return, including:

Shares, options or securities that have been issued to or acquired by employees or directors

Options that have been granted, exercised or cancelled

Companies and LLPs that are members of international groups must take particular care to identify situations where their employees have received shares in other group companies, including overseas companies.

For approved schemes, there is also a self-certification process under which all EMI, CSOPs, SIPs and SAYEs must submit a declaration to HMRC that the criteria for qualification have been met. Self-certification only needs to be done once, therefore only new schemes which commenced operation in 2016/17 need to be completed by 6 July 2017. Failure to register the scheme within the ERS online service could mean the tax benefits of the approved scheme will be lost.

How we can help

HMRC have informed us it can take up to a week to register a scheme on the ERS online service, so we recommend registering sooner rather than later to ensure any technical issues can be resolved without any delay to your filings.

Buzzacott can complete your online registrations and assist with the filing of your Employment Related Security share scheme return, as well as the self-certification of any approved share schemes you have in place.

If you require further assistance please contact your usual Buzzacott representative and we will be happy to help, or contact: enquiries@buzzacott.co.uk.

You might also be interested in… Employee ownership.

In addition it lets staff benefit from strong company performance in the form of tax-efficient bonuses. Employee ownership is also a suitable option for not-for-profit organisations or social businesses – we can talk you through the benefits for all sides.

Download this useful resource:

Employee Ownership Trusts or Vendor Initiated Management Buy Out

Buzzacott are members of the Employee Ownership Association (EOA) which represents organisations that are employee owned or transitioning to employee ownership across the UK. You can rely on us for objective advice as to whether employee ownership is the right thing for your business.