The 2014/15 tax year saw major changes to the reporting requirements and administration of employee share schemes. All share schemes now need to be registered online with HMRC and annual returns must also be filed online.
Filing by 6 July 2016
The filing deadline for 2015/16 share scheme returns is 6 July 2016.
It is worth noting that an obligation to file a return can arise for any share transaction involving an employee or director. A formal share or share option scheme is not required to trigger a filing obligation.
HMRC system
HMRC’s new system is complex and you may recall that it crashed in July last year, leading to the loss of many returns. We would therefore recommend that 2015/16 share scheme returns are filed as soon as possible, to avoid similar issues and minimise the risk of incurring penalties.
Penalties
Late filing penalties will apply where returns are not filed by 6 July 2016. Penalties can mount up quickly over time and may also impact on HMRC’s risk rating for the company.
Need help?
For further information or advice, please contact Charlie Burton at charlotteburton@ryecroft-glenton.co.uk or on 0191 281 1292.