Share Schemes Registration
Before employers can submit a return using the ERS Online Service:
- They must register to use HMRC Online Services.
- They must register each employment related securities scheme or arrangement
- The company secretary or employer (on behalf of the company secretary) must self-certify any tax advantaged schemes using the ERS Online Service
There is no need to register non-tax advantaged schemes or arrangements until there is a reportable event.
Employers must supply (HMRC) with an online return for each registered employment related securities scheme or arrangement by 6 July following the end of the tax year. If there have been any reportable events the employer must also submit an attachment with their return.
When a scheme is registered, HMRC will give the employer a unique scheme reference number. The employer will use this to submit your end of year return. All schemes must be registered by 6 July 2015 or the tax advantages of the scheme will be lost, even if it already has HMRC approval.
International law firm, Squire Patton Boggs, predicted that companies might have issues when using HMRC’s new online service for registering employee share plans with HMRC. Their latest news item on the subject states that “it appears that problems are indeed emerging”.
They report that despite the looming deadline of 6 July, they are hearing anecdotal reports that so far only about 25% of plans have been registered. In addition, HMRC has identified particular issues with:
- companies registering the same plan more than once, perhaps in the mistaken belief that each launch of a plan constitutes a new plan, rather than simply another grant/award under the same plan;
- the same plan being registered numerous times, once for each subsidiary that operates it; and
- companies registering tax-advantaged plans in the wrong category (for example, an SAYE scheme as a CSOP).
Unfortunately, at the moment there is no way to correct an entry made by mistake. A plan that has been registered incorrectly will be on the system and therefore an end-of-year return for that plan will have to be made, in which the plan should be reported as having ceased. In addition to which, of course, you will have to register the plan correctly under a separate number.
Full details of how to register are contained in a letter sent out by HMRC to company secretaries.
Time is now of the essence as there are now only four weeks left before the deadline
Further Information
- HMRC’s Guidance - https://www.gov.uk/tell-hmrc-about-your-employment-related-securities
- HMRC’s letter to company secretaries - https://www.globalcompensationinsights.com/files/2015/06/HMRC-Letter.pdf
- Squire Patton Boggs article - https://www.globalcompensationinsights.com/2015/06/the-best-laid-plans-problems-with-registering-share-schemes-with-hmrc-online/