EMPLOYEES, DIRECTORS, SHARES AND SHARE OPTIONS
YEAR ENDED 5TH APRIL 2015, DEADLINE 6TH July 2015
SAME REPORTING REQUIREMENTS BUT A NEW SYSTEM
Virtually any transaction or change that involves employees and shares is reportable to HMRC on an annual basis. The obvious things to file are annual returns for HMRC approved plans (Enterprise Management Incentive (‘EMI’) share options, Share Incentive Plans (‘SIP’), etc.). You also need to report any other transactions that involve employees (including directors) and company shares. Failure to report will incur penalties.
What sorts of things are reportable?
Here’s just a few as an example, the list is not exhaustive:
New Online Returns
In previous years, HMRC would send out reminders to complete paper returns for HMRC approved share plans, and for anything else that was not HMRC approved your adviser would use ‘Form 42’. This is no longer the case.
You now need to register and then self-certify HMRC approved share/share option plans online with HMRC and then make all annual returns through the same online system. For any other transaction, you need to complete the online version of ‘Form 42’.
All of the above needs to be done by 6th July 2015 (and then each year thereafter).
Registration, self-certification and annual returns need to be done via your PAYE online login. This would typically be done by you, your PAYE agent or your accountant.
This is a new system but from our experience the process can be lengthy in certain cases, so if this applies to your company then we recommend you start the process well before the deadline. Further delays can happen where you don’t want whoever deals with your PAYE to know about such things as share options, i.e. the information is sensitive and, therefore, a separate login needs to be arranged.
The main purpose of this factsheet is to remind you of the reporting requirements and make you aware of changes to the reporting system.If you would like our help dealing with this then please call and we will discuss the level of our involvement you require.
Just to remind you of other year end reporting obligations
On top of your standard PAYE/NI annual reporting, the 6th July is also the deadline for:
- submission of forms P11D & P11D(b) as they relate to the provision of benefits in kind;
- providing HMRC with details of termination payments in excess of £30,000 which have not been reported within the P35;
- agreeing with HMRC the items to be included within your PAYE settlement agreement;
- submission of any taxed award scheme returns to HMRC.
Harbour Key Limited
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Always take professional advice when deciding your tax planning or investment strategy. The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.
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