Share plan annual returns for the 2022/23 tax year need to be filed online by 6 July 2023 in respect of all your share incentive arrangements to avoid penalties (an initial penalty of £100 will be due if a return is just one day late).
As the online returns process can be tricky and time consuming to navigate, it is a good idea to prepare and file your returns as soon as possible. If you create your own templates, don't forget that HMRC have made some minor changes this year that you will need to incorporate.
Points to Note:
- 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.
- Don't wait for a reminder from HMRC – they won't
send one!
- You must file a return in respect of all types of security and
securities options acquired by, or awarded to, your employees and
directors (not just shares), including loan notes, partnership
interests and carried interest.
- 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).
- To check whether an arrangement or plan is already registered,
go to the "view" tab in your ERS online account (through
your PAYE online portal) to see all the arrangements registered
under your PAYE reference number (note that all your non
tax-advantaged arrangements and plans can be registered under a
single reference number).
- 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.
Originally published 6 June 2023
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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