EMI working hours commitment amended to take account of Coronavirus work interruptions
EMI working hours commitment amended to take account of Coronavirus work interruptions
Mon 06 Jul 2020
Finance Bill 2020 includes an amendment to enterprise management incentive (EMI) rules on working time commitments for employees, to ensure that employees are not adversely affected by not being able to work during the period beginning with 19 March 2020, and ending with 5 April 2021 for reasons connected with Coronavirus disease (within the meaning given by section 1(1) of the Coronavirus Act 2020). There is provision for the Treasury to extend the dates by regulation.
This is covered at clause 107 of the Finance Bill as at 2 July 2020 (see here). For further advice on share schemes and incentives, please get in touch with a member of the Mazars share schemes team.
International tax matters requiring attention sooner rather than later
This note highlights a number of international tax matters which, from a UK perspective, should be being addressed with clients and targets that are potentially within scope. These are: Offshore receipts in relation to intangible property (ORIP). Legislation brining offshore entities within the scope of income tax commenced on 6 April 2019. Thus if within […]
EU state aid approval of UK EMI scheme
The European Commission has issued a press release confirming that EU State Aid approval has been given to the extension of the period of approval for the UK’s enterprise management incentive (EMI) scheme. The press release comments: “Without prejudice to any provisions of the Withdrawal Agreement, which is under negotiation, this Commission decision only applies […]
Employee tax compliance deadlines
June is a busy month in the world of employment tax and employment-related securities (ERS) as the following deadlines approach. 5 July This is the effective deadline for making a PAYE settlement agreement (PSA) whereby the employer contracts with HMRC to pay a sum representing PAYE and NIC on benefits in kind to its employees […]
Halloween Scare Schemes – EMI options: What could possibly go wrong? Common misunderstandings and mistakes
Although the legislation governing Enterprise Management Incentives (EMI) options is fairly flexible, and not particularly restrictive, there are some areas where advisers and companies can get themselves into difficulties. This could mean that the EMI options will not qualify, or will only partially qualify, for EMI tax reliefs. The most common mistakes and misunderstandings relate […]
Amendments to Seed Enterprise Investment Schemes (SEIS), Enterprise Investment Scheme (EIS) and Venture Capital Trusts (VCTs)
In the Budget the Chancellor announced that the Government will make amendments to the SEIS, EIS and VCT legislation to ensure that the UK continues to offer significant and well-targeted support for investment into small growing companies, in line with new EU rules. The new proposals are subject to state aid approval and the likely […]
URGENT – Deadline for registering share plans fast approaching
There have been seismic changes in relation to employee share plans. One of the key changes is share plan registration and annual returns filing. From April 2014, all share plans (UK tax-advantaged or UK non tax-advantaged including overseas plans with UK participants) must be registered online with HM Revenue & Customs (HMRC) via a new […]
Getting ready for 2015/16 Employment-Related Securities (ERS) Filing
After the major changes that were introduced for the 2014/15 tax year, employee share plans and the employer compliance process continue to be in a transition phase for 2015/16. The changes introduced from April 2014 in relation to share plan registration and annual returns filing led to a number of ‘teething problems’ which remain a […]
Craft-ing the Equity Future of your Company
April 2016 sees the arrival of the first annual London Games Festival (launch video here) – a 10 day extravaganza of events and talks. The festival is part of the Games London initiative which represents a £1.2 million investment from the London Enterprise Panel (LEP) demonstrating the drive to make London the capital of the games world, […]
Share scheme failures cost more than just penalties
Certainly not coincidentally with the approaching deadline for making employment-related securities (ERS) returns, HMRC have published two new factsheets setting out the amounts of penalties relating to ERS arrangements and returns and their approach to charging those penalties. Material inaccuracy in an EMI annual return form CC/FS32 £5,000 is the maximum penalty for a material […]
Don’t let employment-related securities be knocked out on penalties
Certainly not coincidentally with the approaching deadline for making employment-related securities (ERS) returns, HMRC have published two new factsheets setting out the amounts of penalties relating to ERS arrangements and returns and their approach to charging those penalties. Material inaccuracy in an EMI annual return form CC/FS32 £5,000 is the maximum penalty for a material […]
National Employee Ownership Day – 2017
30 June is National Employee Ownership Day in the UK this year. The purpose of EO Day is to highlight the benefits of employee ownership to business, whether this is direct ownership, using share plans, or indirect ownership using an employee ownership trust and following the well known John Lewis model; or a hybrid approach […]
HMRC’s employer compliance checks make it essential you get your ERS compliance filings correct – Here’s what you need to know for 2017/18 share plan returns
Problems described as “teething troubles” when the online filing régime for share plan registration and annual returns was introduced in 2014 remain a concern in some cases in 2018. Authorisation codes may go astray in the post, so companies new to the ERS online system need to prepare as soon as possible, especially in […]
EMI’s EU State Aid renewal deadline is looming fast – EMI Plan ‘house-keeping’ matters to check
Enterprise Management Incentives (EMI) is the UK’s most popular share plan, offering great flexibility and tax advantages for eligible entrepreneurial businesses. The tax relief advantages for EMI include the potential to exercise options tax-free (provided the exercise price is at least equal to market value as agreed with HMRC as at date of grant) and […]
The EMI hiatus conundrum – To grant, or not to grant? – that is the question…
Further to our previous EMI blog, in March, (here: https://blogs.mazars.com/letstalktax/2018/03/emis-eu-state-aid-renewal-deadline-is-looming-fast-emi-plan-house-keeping-matters-to-check/ ) warning that HM Treasury had failed to secure timely renewal of the EU State Aid approval necessary to allow Enterprise Management Incentive (EMI) tax advantaged option grants to be made after 6 April 2018, the deadline has indeed passed without the requisite renewal confirmed. So, where […]
Enterprise Management Incentives – The sequel
We highlighted in earlier blogs this year that there was a delay in HM Treasury securing the necessary EU State Aid approval to renew the UK’s flexible, tax-advantaged share plan, Enterprise Management Incentives (EMI), beyond 6 April 2018 (the previous EU approval expired on that date). On 15 May 2018 the European Commission (EC) finally confirmed its renewal […]
Further Covid-19 tax developments for June 2020
Below is a summary of some of further Covid-19 tax developments in June 2020. There is a range of information and links relating to Covid-19 available on the Mazars UK website here. HMRC has issued new directions for the coronavirus job retention scheme (CJRS) setting out how claims are to be made for flexible furloughing […]
EMI points in HMRC’s October employment related securities bulletin
HMRC’s October employment related securities bulletin contains a couple of interesting points concerning EMI (enterprise management incentives) schemes. These are summarised below. For a further discussion of the tax and administrative issues of EMI and other employee share schemes, please get in touch with a member of the Mazars employment tax team. EMI options granted between […]
A St. Patrick’s Day Surprise for Off Payroll Workers?
Tuesday 17 March was a busy day for the Government. From the growing threat Covid-19 is bringing to the UK and Europe as a whole, to the £330bn financial support announcement for businesses and individuals, it was a day of emotion and bold, unprecedented action. As we were all digesting the announcements made earlier in […]
Covid-19 update: “Plan for People’s Jobs and Incomes” & support for businesses
The Chancellor announces the “Plan for People’s Jobs and Incomes” and provides further support for business as the pubs close for last orders.
Managing your VAT cashflow during a social and economic crisis
As the country grinds to an advised halt, with offices, shops, restaurants and businesses either closing or moving to remote working where possible, you may already be thinking about how the slowing down of the economy will impact on your cashflow. Indeed, since our first comments on the health crisis unfolding across the world, further […]
Update: COVID-19 – Global mobility tax and social security considerations
The world we live in today is more mobile and connected than ever before. We are the first ones in the 21st century to have experienced a whole new digital world, growth in the movement of people and services, which drive innovation and the unification of populations around the world. Even with evolving immigration controls […]
VAT Cashflow planning: COVID-19
In such challenging times have you had time to understand how to maximise cashflow resulting from the VAT deferral measures granted by the Chancellor? As at 31 March 2020 the VAT payment deferral scheme highlights are: VAT payments for the next VAT return (meaning payments due between 20/3/2020 and 30/6/2020) can be deferred until 31/03/2021; […]
Coronavirus Job Retention Scheme Update – 4th April 2020
Following the announcement by the Chancellor recently (see here for more details), further clarification has been announced on the CJRS arrangements available to employers to help fund employment costs and reduce the need to make redundancies during these strange and unprecedented times. What was the update? The Government amended previously published guidance to help clarify certain […]
Current VAT points of interest – VAT and donations, VAT and the construction sector, single and multiple supplies
In this first of a series of VAT updates, we highlight the VAT implications of business donations in response to Covid-19, an upcoming VAT change affecting the construction sector, together with the summary of a recent VAT case regarding single and multiple supplies. Coping with Covid-19 and VAT on donations In the current environment of […]
Covid-19 guidance on UK tax residence for individuals and companies
HMRC has added guidance to its manuals on its approach to determining UK tax residence for individuals and companies. Personal tax statutory residence test (SRT) – RDRM11005 UK permanent establishments – INTM261010 Corporate residence – INTM120185 In addition the UK Chancellor of the Exchequer, Rishi Sunak, has announced a temporary relaxation to the SRT for […]
Covid-19 developments relevant to tax
The tax implications of the way HMRC is refining tax administration as a result of Covid-19 is continually evolving. There is a range of information and links relating to Covid-19 available on the Mazars UK website here. The points below are tax points of detail that may be of interest: Certain PAYE filing deadlines. There […]
Covid-19 – recent UK developments to end May 2020
The notes below give an indication of the recent developments on covid-19 support in the UK. For further details about these and any other covid-19 developments, please get in touch with your usual Mazars contact. There is a range of information and links relating to Covid-19 available on the Mazars UK website here. Details are […]
Covid-19 news for June 2020
Below is a summary of some of the Covid-19 tax developments in June 2020. There is a range of information and links relating to Covid-19 available on the Mazars UK website here. The coronavirus job retentions scheme (CJRS) and self-employed income support scheme (SEISS) to the end of October 2020. There is increased flexibility for […]
What to do if you have paid VAT instead of deferring it during the COVID-19 VAT deferral period
HMRC have set out the procedure for taxpayers to reclaim VAT they have paid in error (e.g. Direct Debits not cancelled) when they meant to defer the payment with a VAT return under the COVID-19 VAT deferral easement. HMRC have announced that a refund can be claimed if a Direct Debit was not cancelled in […]
HMRC issues revised employment-related securities guidance
HMRC has updated its guidance in relation to employment-related securities and published the latest Share Schemes Bulletin (ERSS Bulletin 15) which includes: an outline of shares & securities changes in Finance Bill 2014; guidance on the commencement and transitional provisions for Finance Bill 2014 Schedule 6; Enterprise Management Incentive notification; and guidance on accessing the […]