HMRC online filing regime for employee benefit schemes: deadline extended to 24 August 2017
Time is running out for employers to submit their annual returns for their employee benefit schemes.
HMRC requires that employers register their employee benefit schemes and, where relevant, that they submit annual returns electronically in relation to them. This year’s deadline for doing so is 24 August 2017 (it was originally 6 July 2017 but, due to technical issues with HMRC’s online service, the deadline has been extended for this year).
Returns are required in respect of Enterprise Management Incentives and employment-related securities (including Save-As-You-Earn Option Schemes, Company Share Option Plans and Share Incentive Plans, which must be self-certified), and must be submitted using HMRC’s online service.
Non-tax-advantaged schemes do not need to be registered, unless a reportable event has occurred. If a scheme is registered or has already been registered, a return must be submitted, even if it is only a ‘Nil’ return (in circumstances where no reportable event has occurred in the relevant tax year).
Failure to adhere to these deadlines will result in automatic penalties being imposed by HMRC and, for tax-advantaged schemes, may result in tax advantages being revoked. The automatic penalties are imposed as set out below:
|Extent of delay in submission||Penalty amount|
|Miss 24 August deadline||£100 fixed charge|
|Delay for 3 months after 6 July||£300 fixed charge|
|Delay for 6 months after 6 July||£300 fixed charge|
If the delay in submission continues for 9 months after 6 July, HMRC may also decide to impose a further fine of £10 for each day following the end of that 9-month period.
MacRoberts can assist with all aspects of employee share schemes and cash-based incentive plans.