HMRC has decided the extend the online reporting deadline for share schemes and other employment related securities returns by a working week following a spate of techical problems. 

HMRC says: 

"We are aware of some technical issues that are being investigated as a matter of urgency, and apologise for any inconvenience caused to customers.

As customers will be unable to file their annual return by the 6 July 2015 deadline we will allow a further five working days to file once the system is up and running. We have said we want customers to file returns, and that remains the case – we do not want to charge penalties.

Customers can still access the system to register share schemes and use the file checking service.

We will give a further update on Monday 13 July."

What is this about?

  • Employers must report employment related securities online for 2014/15 by 7 July 2015.
  • Reportin was previously done on paper using "Form 42", that form has now been withdrawn.
  • Before a company can make their annual online employment related securities return they must first register a share scheme online.
  • The transfer of shares, a share for share exchange or a bonus issue counts as a share scheme under these rules

Share and securities reporting: what does your average SME need to report?

There is a lot of confusion as to what should be returned to HMRC.

Companies should report the following:

Transfers of shares to and from employees and directors (however excluding transfers made in the normal course of the domestic, family or personal relationships).

The issue or transfer of restricted shares in Flat Management Companies or Members’ clubs (formed as companies).

Shares or securities transfered or acquired, as follows*:

  • Share for share exchanges
  • Rights issues
  • Bonus issues
  • Scrip Dividends
  • Dividend Reinvestment Plans (DRIPs)
  • Shares acquired independently by employees

*unless, the company is listed and the opportunity to acquire unrestricted shares/securities is made available to all shareholders, including director and employee shareholders. Certain other conditions are met, see Shares, securities and options: tax compliance.

Exemption

HMRC has recently announced an exemption from online filing for companies which are unable to make returns of reportable events because they have no obligation to operate PAYE and have no PAYE scheme, see No reporting if not registered for PAYE for full details.

Penalties for late filing of annual share scheme returns

The 2014 Finance Act introduces the requirement for the completion of an Annual Return in order to report taxable events in connection with employment related securities, see new penalties for the failure to provide information.

Need help?

Contact the Virtual Tax Partner®.  

 

 

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