Year End 5 April 2020 Reporting deadline – 6th July 2020
Georgina Davis – Business Tax Specialist
The following needs to be completed by 6th July 2020 to avoid late filing penalties or losing tax advantages on certain share options –
- Complete and submit annual returns to HMRC for current employee share schemes
- Register new employee share schemes with HMRC, including where directors and/or employees have received shares or share options
- Self-certify any new tax advantaged share schemes with HMRC
When is a UK company required to file and submit an ERS?
A UK company is required to file Employment Related Securities (ERS) annual returns with HMRC in respect of any share related benefits provided to UK employees by virtue of their employment.
This includes the following situations –
- Grants of options, option exercises, cancellations or replacements, whether under UK approved or unapproved schemes
- Other share scheme option grants, exercises, cancellations or replacements
- Other share/stock/securities awards by virtue of employment e.g. Restricted Stock Units/shares in the group’s parent entity;
- Lifting of restrictions attached to shares;
- Where actions have changed the share value of an employee or Director’s shareholding, such as substantial movements in a loan to or from a relative’s company;
- Where shares or other securities in any other company have been obtained by reason of their employment by a current, former or future employee;
- A scheme having been previously registered but not closed, even though no reportable events have occurred during the tax year – a nil return still needs to be filed
If the share scheme has not been registered this must be carried out through your HMRC PAYE log in before any filings can be submitted.
If there are any queries or you require our assistance with your Employment Related Securities filing obligations please get in touch with your Menzies contact.