UK: Share Plan Annual Reporting Deadline – 6 July 2024

The 2023/24 tax year has ended so now is the time to start thinking about your annual employee share plan reporting obligations. Annual returns for the last tax year must be filed online with HM Revenue & Customs (HMRC) by 6 July 2024 and are due in respect of all the employee share plans or arrangements you had in place during that period, even if there has been no activity.

• 6 July 2024 is a hard deadline, so it is important you submit your returns by that date (note that it falls on a Saturday this year). Companies will not receive a reminder from HMRC to file their returns so don't wait for one!
  
  
• An initial penalty of £100 will be due if a return is just one day late.
  
  
• You must submit a return in respect of each share plan registration. If there was no activity in the 2023/24 tax year (for example, no new grants), you must complete a nil return.
  
  
• 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 put in place with a formal set of plan rules. This includes the grant of options to (or acquisition of shares and other securities such as loan notes or carried interest by) employees and directors (including non-executive directors). As well as UK employees, you may need to make a report in respect of non-UK employees with UK duties.
  
  
• 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 aren't sure whether an arrangement is already registered, you can check by going to the "view" tab in your ERS online account (through your PAYE online portal). Note that the registration process can take a few days.
  
  
• All your non tax-advantaged arrangements and plans can be registered under a single reference number and a return submitted on the "other" template. In contrast, each of the tax advantaged plans (CSOP, SAYE, SIP and EMI) must be registered and reported separately. The HMRC template annual return for tax-advantaged CSOP options has been updated this year to reflect the increase in the value of options that an individual can hold to £60,000.
  
  You can access the HMRC templates and guidance notes here:
  
  https://www.gov.uk/government/collections/employment-related-securities
  
  
• Your return will be rejected if it contains formatting errors, so it is a good idea to take advantage of the HMRC's checking service before submitting your return. A link to this service can be found here:
  
  https://www.gov.uk/guidance/spreadsheet-checking-service-employment-related-securities-ers.
  
  Note that leaving gaps between lines can lead to information not being captured.

• 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.
  
  
• Before you submit your returns, you should save a copy for your own records. Take screenshots of each page before submitting and save them together with a copy of the confirmation page. This is because the HMRC online service won't save these details and you won't be able to access them again.