Employee share schemes approval and reporting

Thu 09 Jan 2014

Employment-Related Shares and Securities Bulletin 12 sets out how HMRC will manage the transition from prior approval to self-certification of SIP, SAYE and CSOP schemes which is due to come into effect on 6 April 2014.

The Bulletin confirms HMRC’s past, informal policy of not requiring completion of a new return form to make amendments to a share scheme returns. This policy remains in place for all return years up to and including 2013/14: amendments made in a schedule that follows the proper form and includes an explanation of the reason for the amendment are acceptable and according to the Bulletin will still be acceptable in future.

However, 2014/15 returns will have to be made online and amendments for that and later years will only be acceptable if made on the correct form.

HMRC will continue to process applications for approval up until 5 April 2014 and thereafter the self-certification system will apply. If a scheme application has been submitted to HMRC before 6 April 2014 but has not been formally approved by that date, HMRC will only comment on whether the scheme rules meet legislation requirements and will not give formal approval. Registration and self-certification of schemes must be completed by 7 July 2015 for the tax advantages to apply for the tax year 2014/15.

In areas of uncertainty after 5 April 2014 the non-statutory clearance system will be available to provide assurance before returns are made.

As HMRC requires strict adherence to online reporting as from 2014/15, with the first returns being due on 4 July 2015, the penalty regime will also be more strictly applied.