If you have a company operating HM Revenue & Customs (HMRC) approved tax-advantage share plans, new reporting requirements mean that you will have to register such share plans online with the HMRC PAYE Portal by the 6th July 2015 for 2014/2015 returns to continue to receive those tax benefits and to avoid penalties for missing the deadline.
Automatic late filing penalties of up to £700 (plus a potential £10 per day penalty if returns are over 9 months late) will apply from 2014/15 onwards. Furthermore, penalties of up to £5,000 may be imposed for submission of an incorrectly completed/formatted return.
Each share plan scheme must be registered separately with HMRC, and relevant schemes include the following:
- Enterprise Management Incentives (EMI)
- Share Incentive Plans (SIP)
- Company Share Option Plans (CSOP)
The grant of an EMI option must be notified to HMRC within 92 days. This process is now online and HMRC no longer accepts paper returns since 6 April 2014.
The new reporting standards also apply to non-tax advantage share plans.
If you have any further questions regarding your share plan schemes or registering your schemes with HMRC then please don’t hesitate to get in touch with us.
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