Employment Related Securities Reporting

Date posted: 27th May 2022

Have you issued shares or options to Company employees during the 2021/2022 tax year?

If a company employee, or associate of an employee, has acquired securities, either from the company or an existing shareholder, during the 2021/22 tax year, the company may need to file a report with HM Revenue & Customs (HMRC) by 6 July 2022. The term securities includes shares and share options.

This type of reporting applies whether the shares/share options were within a formal scheme/plan or were an informal, one-off award, incentive or bonus. The report must be filed online, which involves the initial set up of a scheme and then the completion and submission of the report. This can be time consuming as it may also be necessary to set up an HMRC online account, so it would be sensible to allow sufficient time prior to the deadline to accommodate any issues arising.

Annual returns are also required for tax-advantages plans such as EMI Schemes and it should be noted that, once any scheme has been set up and an annual return submitted, returns ARE required for subsequent tax years until the plan ceases. Annual returns are required even if there have not been any transactions during the tax year. Failure to report once a scheme has been set up will result in HMRC charging penalties.

If you have any queries or require assistance please contact the team here.


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