HMRC registration: Broadsword calling Danny Boy!
If you, or one of your clients, operates an employee share scheme, it MUST be registered on HMRC’s new online Employment Related Securities portal by 6th July this year.
This applies to ANY scheme, whether you have just implemented it, or whether it has been operating for some time.
If you fail to register your scheme online by this date, any tax advantages associated with the scheme will be lost. To put this in the context of an EMI scheme, that means going from a possible 10% tax charge based on capital gains tax with Entrepreneurs' Relief, to a much higher rate incorporating income tax, employer's AND employee's NICs (so, around 60% for someone paying additional rate income tax).
Please DO NOT leave this till the last minute! HMRC’s system may be inundated on 6th July as that is the same day by which share schemes annual returns must be filed. Furthermore if your scheme is not registered by that date, you will not be able to file your annual return, leaving yourself open to late filing penalties.
If you already engage us for the administration of your share plans we will have contacted you about this separately.
There is a link to HMRC’s website here. If you need help, call us on 020 8949 552.