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10th March 2015
Posted in Articles, Business Tax, Employee Incentive Arrangements, Employment Tax, Featured Articles by Forbes Dawson
New rules are coming into force regarding reporting responsibilities for EMI share schemes, other approved share schemes and unapproved options
The new rules
New rules were introduced in Finance Act 2014 which now require all new share schemes to self-certify online with HMRC. If approved schemes, companies must confirm that they meet the requirements of the relevant legislation
EMI schemes
From 6th April 2014 new EMI options granted have to be registered online. In addition HMRC have to be “notified” within 92 days of the actual grant of options, also online.
These new rules however will have an impact on share options that may already exist. For EMI options issued (but unexercised) before 6 April 2014 there is still the requirement to register the options online before 6th April 2015.
It is not possible to notify HMRC online of the grant of options until the scheme has been registered. If notification does not take place before the expiry of 92 days the options will not qualify for any of the EMI tax advantages.
The submission of EMI1 Forms must also now be submitted online on or before 6th July, otherwise you may be liable for a penalty.
Approved share schemes
All other approved schemes established pre 6 April 2014 must also be registered with HMRC by 6th July 2015 again using the online registration scheme. Companies must also confirm that the scheme meets the required requirements of the legislation.
Unapproved schemes
Whilst unapproved schemes do not have any tax advantages they are still required to register online.
Online Registration
Companies have to register using the PAYE on-line service using the “Employment Related Securities” option.
Each scheme must be registered separately and therefore if multiple option schemes have been entered into each one will need to be registered rather than just the company.
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