2024-04-23-KPMG_Global-United_Kingdom_–_6_July_Employee_Share_Plan_Reporting_Deadline_Registering_Trusts_6页_228kb

Summary of GMS Flash Alert 2024-097

The UK employers have an annual obligation to report Employment Related Securities (ERS) events and register trusts with HMRC. Key deadlines and obligations include:

• Filing Deadline: July 6, 2024, for submitting annual returns on or before this date. This covers all notifiable events related to ERS, such as grants, acquisitions, or lifting of restrictions on shares or other securities.
• Registration Requirement: ERS plans must be registered with HMRC's ERS Online Services if not done previously. Tax-advantaged plans (CSOP, SAYE, SIP, EMI) require separate registrations, while other arrangements can be grouped under one. New registrations should start by April or May 2024 to avoid delays.
• Importance: Missing the deadline incurs automatic penalties: GBP 100 per registration if not submitted by July 6, 2024; additional GBP 300 if not submitted by October 6, 2024; and further charges if still outstanding after January 6, 2025. Employers must ensure information is accurate and reconcilable with payroll and tax records.
• Events to Report: Include all ERS-related events during the tax year (April 6 to April 5), regardless of the company's location. Events outside formal plans, like acquisitions during transactions, are also reportable. A 'nil' return is needed if no events occur, and separate reporting is required for taxes not advantageous under UK law.
• Special Considerations: Address cash cancelled or net-settled awards carefully, as they can affect corporation tax relief and tax obligations. For employees with UK residence or social security connections during vesting periods, report all share-based awards. Internationally mobile employees may face challenges; review trusts and ensure consistent reporting across countries to avoid penalties.
• Other Factors: Company-Specific Actions: Understand potential impacts from dividend allowance changes, capital gains tax reductions, and reforms like the replacement of non-domicile rules. Employers should consult tax professionals for registration and submission support.

This alert emphasizes timely preparation to avoid fines and ensure compliance for UK employee share plans.