You need to do the following by 6 July 2019:
If you don't take the above actions in time, you will be subject to automatic penalties and will lose the tax-favoured treatment for certain share options.
HMRC are no longer lenient on penalties. The following automatic penalties will apply:
There is also a £10 per day penalty if the filing is more than 9 months late and HMRC decides to impose such daily penalty.
There is also a penalty of up to £5,000 for a material inaccuracy in a return which is not immediately addressed.
If any reportable events have taken place in relation to either tax-favoured plans or non tax-favoured plans and arrangements during the 2018/19 tax year, you will need to report them. "Arrangements" includes the acquisition of employment-related securities by employees and directors generally, not just under a formal plan.
Reportable events include the following:
You will need to register all new employee share plans and arrangements online. You will also need to self-certify that any new tax-favoured share plans (EMI, CSOP, SIP and SAYE) meet certain requirements.
If you have previously registered a plan or arrangement but have no reportable events for the 2018/19 tax year, you must submit a ‘nil return’ to avoid automatic penalties arising for non-filing.
The deadline for submitting your returns is 6 July 2019. If you have not used the HMRC online site for employment-related securities already, it can take over two weeks to register your plan or arrangement. You will not be able to do your end of year reporting until registration has happened, so you do not want to leave it until the last minute.
If you have granted options over shares in a non-UK company to employees of a UK subsidiary, it will be simpler for the UK subsidiary to be responsible for the online registration, self-certification and end of year reporting.
Please get in touch with Ann Casey, Anna Humphrey or Alice Hill if you need assistance or further information