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Business Tax  •  Personal tax  •  Share Schemes  •  Tax Relief  •  Taxation

New filing procedures for HMRC approved employee share schemes

By Lesley Stalker on 9 May, 2014

With effect from 6 April 2014 there have been some important changes to the administrative procedures that must be followed if you operate a share scheme for employees.

The changes affect:

  • Enterprise Management Incentives (EMI);
  • Company Share Option Plans (CSOP);
  • Save As You Earn option schemes (CSOP);
  • Share Incentive Plans (SIP) and
  • Any non-tax advantaged arrangements.

From 6 April 2014 all existing and new employee share schemes must be registered online and it is necessary to self-certify that any tax advantaged schemes meet certain requirements.

It is necessary to register:

  • Unexercised EMI options;
  • New grants of EMI options;
  • Non-tax advantaged arrangements which are currently recorded on a form 42; and
  • CSOP schemes, SAYE option schemes and SIPs.

HMRC will no longer approve any new tax advantaged schemes and if you do not self certify that tax advantaged schemes meet the legislative requirements, any tax advantages will be lost.

For 2013/14 it will still be necessary to file paper returns; these must be filed with HMRC before 6 July 2014 to avoid penalties.

From April 5th 2015, all administrative activities associated with a share scheme will be completed online, via HMRC’s PAYE for Employers service. Already any companies setting up new schemes no longer need to await HMRC clearance or complete paper returns and will instead complete all correspondence online.

Our recommendation to clients with share schemes is to ensure they gather the relevant information required for the registration or returns process as soon as possible, to avoid the risk of a late submission.

If you have questions relating to the administration of an existing share scheme or want to set up a new tax efficient employee share scheme, please contact Lesley Stalker by emailing las@rjp.co.uk.

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