Legal briefing | Tax, Incentives & Remuneration |

Time is running out to do your share plan annual returns

Time is running out to do your share plan annual returns

Overview

Share plan annual returns for the 2020/21 tax year need to be filed by 6 July.

If this is still on your "to do" list, don't put it off any longer as an initial penalty of £100 will be due if a return is just one day late. Although the process can be a little tricky and time consuming the sooner you tackle it the better.

Remember:

  • You need to make a return in respect of all your share plans and arrangements (tax-advantaged and non tax-advantaged) whether or not they were set up with a formal set of plan rules.

  • Before you can make an annual return, your share incentive arrangement or plan must be registered with HMRC under the ERS online service (part of the HMRC PAYE online service – if you don't already have access to this service, you can register for it here).

  • You must submit a return every year even if there has been no activity (for example, no new grants) during that period (in such circumstances you must file a "nil" return). You can download and complete the relevant annual return template online which can be located here.

  • For more information about the process for registering your share plans click here. For information about submitting your returns click here.

  • Sometimes the sale of shares or securities by your employees and directors and the cancellation or exchange of awards may also need reporting. Take advice if you aren't sure as HMRC can charge a penalty of up to £5,000 if a return contains a material inaccuracy.

We can help by:

  • Working with you through the whole annual return process;

  • Reviewing your completed returns before you file them; and

  • Answering your specific queries about completing and/or filing your returns.

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