Tue 15 Apr 2014
HMRC has updated its guidance in relation to employment-related securities and published the latest Share Schemes Bulletin (ERSS Bulletin 15) which includes:
HMRC has withdrawn the requirement set out in ERSS Bulletin 14, that from 6 April 2014 employer companies would have to notify grants of EMI options online through the ERS service but only for options granted before 6 April 2014.
Form EMI1 is still available for download from the HMRC website and HMRC still require paper notification of these options.
EMI options granted on or after 6 April 2014 must be notified online, using the ERS service. It will not be possible to enter a date of grant earlier than 6 April 2014 in the online EMI option grant notification.
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 […]
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 […]
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 […]
Finance Bill 2014 will change the rules taxing employment-related securities (ERS) and employment-related securities options (ERSO) of internationally mobile employees (IMEs). The biggest effect of the change is that income on ERS acquired when non-resident will become taxable as from 1 September 2014. This includes ERSO acquired before 1 September by IMEs not UK resident […]
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 […]
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 […]
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 (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 […]
3rd July 2015 is National Employee Ownership Day in the UK. 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 using a […]
Finance Bill 2014 will change the rules taxing employment-related securities (ERS) and employment-related securities options (ERSO) of internationally mobile employees (IMEs). The biggest effect of the change is that income on ERS acquired when non-resident will become taxable as from 6 April 2015. This includes ERSO acquired before 6 April 2015 by IMEs not UK […]
If the owner of shares in a company gives shares to an employee of the company that will usually be regarded as taxable income of the employee subject to the rules charging receipt of employment-related securities (ERS).
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 […]
A raft of changes to both tax-advantaged and non-tax-advantaged employee share schemes have hit the statute books in recent years and it is, perhaps, not surprising that amongst the changes made to date a few matters slipped through the net. Amongst the Autumn Statement publications is an announcement that the government will now introduce a […]
The Upper Tribunal (UT) decision in John Charman has overturned the First tier Tribunal’s (FTT’s) decision on the chargeability to UK tax of shares acquired as a result of exercising an option in March 2008, which vested in Mr Charman in October 2004. Mr Charman became non-UK resident on 22 November 2003, and the FTT […]
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, […]
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 […]
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 […]
As HMRC launch a new initiative what does this latest campaign mean for football clubs? What is the background to this news and how can employers prepare for a visit from HMRC? How will the football compliance project be delivered? HMRC football compliance project The UK tax authorities have a long history of paying close […]
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 has updated its internal guidance on country by country reporting to include a preferred excel template for providing CBCR notifications. The HMRC guidance is also updated to say that HMRC’s online portal will validate a CBCR file before the option to submit is made and can therefore be used to test the validity of […]
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 […]
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 […]
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 […]
HMRC’s employment related securities bulletin for October 2019 has a section on annual reporting of net settled share awards. The deadline employers’ annual reporting concerning employment related securities is 6 July following the end of the income tax year. Whether share option exercises are settled net (the employee is given share to the value of […]
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 […]
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