Employees must reimburse their employers for any PAYE due on any notional payments made in the 2014/15 tax year within 90 days of the tax year end (section 22 ITEPA 2003). The deadline is 4 July.
Notional payments arise when an employer provides an employee with a non-cash benefit such as shares and securities that are readily convertible assets, see HMRC non-cash pay and P11D Top Tips Toolkit.
Where shares and securities are not readily convertible assets, they are subject to income tax in the employee's hand but not subject to PAYE, see Employment Related Securities.
Employers must report Employment Related Securities transactions annually online, see ERS online reporting (previously Form 42).
