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HMRC have issued their latest Employment-Related Securities Bulletin which includes some useful tips. Here is our enhanced version with links to our guides.

Contacting HMRC for advice about share schemes

Employment-Related Securities (ERS) online service

See Employment-Related Securities: Reporting issues and Penalties: Employment-Related Securities and share scheme returns

Annual Returns

This is a reminder that even if there have been no reportable events in the year, a nil return must still be submitted each year until the scheme ceases and a final event date is entered.

See Shares, securities & options: Tax compliance

Ceasing a scheme no longer operating or registered in error

To cease a scheme the company must access the ERS online service through their PAYE for Employers account:

The company must do this, agents cannot deal with it through their agent ERS online account.

See Employment-Related Securities: Reporting issues

Sell to Cover and vesting of restricted securities

The bulletin includes details of how to report share acquisitions in ‘sell to cover’ cases where the employee exercises their options and then disposes of some of the shares to cover any PAYE or National Insurance Contributions (NICs) due, including where restricted securities options are vested.

Net settlement and annual reporting requirements

Under net settlement, a company uses its own cash to settle the PAYE and NICs due to HMRC.

HMRC published guidance on how to report the net settlement of share awards by employers in ERS Bulletin 33, including an example of a nil cost option award.

See Employment Related Securities: What’s New? October 2019

Non-Statutory Clearance (NSC) Process

For complex cases or where there may be ambiguity about the application of the legislation:

If you prefer to send enquires by post, the address is:

Charities, Savings and International 1
HMRC
BX9 1AU

External link

Employment Related Securities Bulletin 39 (August 2021) 

Links to previous Employment Related Securities: What’s New?

Employment-Related Securities: What’s New? March 2021


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