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Report your Annual UK Share Plan Filings by 6th July 2022

24 May 2022 | Alasdair Friend

The UK tax authorities’ (HMRC) submission deadline for annual return filings in relation to employment-related securities for the 2021/22 tax year is midnight on 6 July 2022.

All reporting must be done via the HMRC Employment Related Securities (ERS) online service.  In order to submit returns, companies must have registered to use the service, registered each employment related securities scheme or arrangement, and self-certified any tax advantaged plans.

WHAT TO KEEP IN MIND

Scope of the reporting requirements
The ERS reporting requirements apply to any share options, shares and other types of security that are acquired by UK employees by reason of their employment.  It can therefore apply to share options and other kinds of share incentive that are granted by non-UK companies to UK based employees.  Reporting may also be required in respect of non-UK resident employees who carry out work duties in the UK.

Online registration

Each ERS plan or arrangement should be registered online, however non-tax advantaged plans or arrangements do not need to be registered until there is a reportable event.

Self-certification of UK tax advantaged plans

Companies that operate tax advantaged ERS plans, such as Share Incentive Plans (SIPs), Savings Related Share option plans (SAYE) and Company Share Option Plans (CSOPs) must self-certify online that the plan complies with the relevant statutory code.  The company secretary (or the employer on their behalf) should complete an online form declaring certain requirements have been met at the date of registration or from when the first option or award was granted.

Online filing of annual returns

An online return must be completed for each registered ERS plan or arrangement by 6 July following the end of the tax year.  The returns will contain details of any share options that have been granted and exercised, as well as any other reportable events in relation to employment-related securities.

Penalties

If returns are filed after the deadline (6 July 2022), penalties may be imposed, and any tax advantages from a tax-advantaged plan for employers and employees may be lost.  It is therefore important to start making the necessary preparations for annual returns compliance.

Annual UK Share Plan Reporting – How to prepare and the top 5 admin errors identified by HMRC

Disclaimer

Content is for general information purposes only. The information provided is not intended to be comprehensive and it does not constitute or contain legal or other advice. If you require assistance in relation to any issue please seek specific advice relevant to your particular circumstances. In particular, no responsibility shall be accepted by the authors or by Abbiss Cadres LLP for any losses occasioned by reliance on any content appearing on or accessible from this article. For further legal information click here.

Circular 230 disclosure

To ensure compliance with requirements imposed by the IRS and other taxing authorities, we inform you that any tax advice contained in this article (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties that may be imposed on any taxpayer or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.

The author

Alasdair Friend
Partner
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