Gabelle Tax Analysis: Filing deadlines loom for employers

The second tranche of employer end of year filing deadlines is fast approaching. The main forms for the year ended 5 April 2012 and the relevant dates are as follows:

Returns of benefits and expenses – Forms P11D and P9D – These forms should be filed by 6 July 2012. They should include details of all expenses and benefits provided to employees, not covered by a dispensation. Form P11D(b) should also be filed showing the amount of Class 1A NIC payable on benefits which should be paid by 22 July 2012 or 19 July if payable by cheque.

Reporting of employment related securities transactions - Form 42 – This form requires details of reportable events in relation to shares and options over securities that are obtained by reason of employment. The completed form must be submitted to the Employee Shares and Securities Unit (ESSU) by 7 July 2012.

Companies which have been sent a “Notice to file” must either file electronically (assuming they are registered) or file a paper copy which can be downloaded from www.hmrc.gov.uk/shareschemes/ann-app-schemes.htm. Companies are still obliged to report events arising in the tax year even if a notice has not been sent by HMRC.

Some events do not require reporting and these include:

  • In most instances initial subscriber shares or “founder shares” issued in respect of newly incorporated companies with no link to other employment. The shares must be of nominal value and no form of security other than shares must be acquired by the director or prospective director;
  • In some cases further shares allotted prior to the commencement of trading or the transfer of assets to the company. These further shares must be allotted to the same person to whom the initial subscriber shares were issued or a director/prospective director. Once again the shares must be of nominal value and the issue must not be connected with other employment;
  • Options granted and exercised under approved share schemes. The relevant details should be shown on the appropriate annual returns as follows;
    1. SAYE – Form 34
    2. Company share option plan (CSOP) – Form 35
    3. Share incentive plan (SIP) – Form 39
    4. Enterprise Management Incentive (EMI) – Form 4
  • Transfers or allotment of shares in the normal course of the domestic, family or personal relationships of the parties.

Penalties can be charged if any of the forms are filed late.

Martin Mann is a Director at Gabelle LLP. He can be contacted at martin.mann@gabelletax.com or via TaxDesk on 0845 4900 509.