Share plan reporting
Nearly all actions involving employee and directors shares are reportable. If you operate a share scheme for employees or directors, or they have acquired shares in the company during 2016/17 you will almost certainly have to make a report to HMRC by 6 July 2017. Take our share plan reporting self-test to find out if you have an obligation.
HMRC estimates over 30% of returns due for 2015/16 were late and attracted automatic penalties. The penalties are up to £700 and daily penalties can be applied where they are not submitted within 9 months of the deadline.
Since the introduction of online reporting we have submitted over 3,000 returns on time with no penalties incurred. Our intimate knowledge of the reporting process and system has meant we have quickly resolved problems and outstanding returns for clients minimising risk of recurring penalties.
In most cases we were acting as authorised agents and were able to complete additional company obligations that typical agents cannot, such as plan registration and ceasing plans through meetings and webinars.
We recommend that employers start the annual return process as early as possible. You will need time to avoid problems and identify all reportable events, such as where share options have been exercised or restricted stock units vested for internationally mobile employees.
How BDO can help
Late returns trigger automatic penalties and the consequences for late certification can be even more expensive but BDO’s specialists can ensure you meet all the deadlines. We will help you:
- Identify all share scheme reporting obligations
- Guide you through the online registration process and make the scheme return disclosures and filings
- Assist with historic reporting to ensure your records are up to date and to put a stop to further penalties.
BDO Equity Reporter
New for the 2016/17 annual return is the BDO Equity Reporter, a bespoke diagnostic tool streamlining accurate ERS filing. The benefits of this tool will be felt most by those operating share incentives for hundreds of employees or where there are multiple transactions per employee. As well as saving time, it includes a secure portal to project manage the process and provides detailed analysis required for other purposes including payroll tax diagnostics, corporation tax deductions and the apprenticeship levy.