Annual returns for employment related securities | Deadline 6 July 2022
Published on 4th May 2022
Companies operating employment related securities arrangements are reminded that the deadline to file their annual returns for the tax year ending 5 April 2022 is 6 July 2022. Action should be taken soon if you have not started to gather together the necessary information.
Employment related securities (ERS) arrangements include:
- tax-advantaged plans – Enterprise Management Incentive (EMI) options, Company Share Option Plan (CSOP), Share Incentive Plan (SIP) and Save As You Earn (SAYE); and
- non-tax advantaged ERS arrangements (this is widely drawn and will broadly capture any shares if the right or opportunity under which they were acquired was available because of an office or employment);
Companies operating such arrangements have an obligation to:
- register any new schemes established within the 2021/22 tax year by 6 July 2022 (note that this process takes up to 10 days, so it is important to allow time for registration to enable companies to meet the deadline for filing annual returns).
- file annual returns electronically for the 2021/22 tax year by 6 July 2022.
Companies must provide details of any alterations or variations of any tax-advantaged plans as part of the annual return process.
Further information, together with the templates to be completed and submitted with the annual returns, is available on HMRC’s Employment Related Securities Online Service and in Employment Related Securities Bulletin 42.
Late filing will trigger automatic penalties from HMRC and will have particularly serious consequences for tax-advantaged plans.
Some practical points for companies to note include:
- there are separate templates to use for each type of tax-advantaged plan, and the “Other” template should be used for arrangements which are not tax-advantaged;
- the relevant share scheme reference number should be included, if available;
- ERS return templates must not be altered in any way;
- where there have been no reportable events, a nil return must be submitted;
- where a scheme has ceased, employers should record the final event date on the ERS online service and file a return for that year; and
- it is important to take screenshots of all the information uploaded to HMRC, for the company’s records.
Please get in touch with your usual Osborne Clarke contact or one of the experts below if you have any queries or would like to discuss further.
