Employment-related securities—reporting obligations

The following Tax practice note provides comprehensive and up to date legal information covering:

  • Employment-related securities—reporting obligations
  • Reportable events
  • Events that do not need to be reported—founder shares
  • Events that may not need to be reported
  • Responsible persons
  • Host employer
  • Excluded securities
  • Completing the online annual return for employment-related securities
  • Penalties for failure to comply with reporting obligations

Employment-related securities—reporting obligations

Employers (or other responsible persons) are required to provide specified information to HMRC in relation to reportable events involving employment-related securities or securities options. Such information must be provided:

  1. online to HMRC (unless HMRC allows the return to be given another way)

  2. by 6 July following the end of the tax year in which the reportable event took place (unless HMRC announces an extension, as it did in respect of the 2016–17 tax year)

All companies that operate employee share incentives for their employees (whether or not they are tax-advantaged) have to register those arrangements online with HMRC and then also file annual returns in relation to these by 6 July of each year. The returns must be filed online unless HMRC agrees otherwise, and automatic penalties apply if this deadline is missed. HMRC does not accept Form 42 paper annual returns (which was the hard copy share schemes return that had to be completed and submitted to HMRC for tax years before 2014–15).

The responsible person's obligation to provide such information arises automatically on the occurrence of a reportable event involving employment-related securities or securities options.

Note that some events must be reported even if they do not give rise to an income tax or National Insurance contributions (NICs) charge (such as the grant of an employment-related securities option, for which, see

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