To date we have not been advised of any Covid-19 related extension covering the reporting of Employment Related Securities, however, we will advise if this situation changes.

Therefore, where an employee or Director has received shares or share options in their employing company in the tax year to 5 April 2020, these will, in most cases, require reporting to HM Revenue & Customs by 6 July on a separate tax return.

In addition to the acquisition of shares, the company must consider its obligation to report any of the following events:

  • Shares or securities disposed of by employees or directors;
  • The grant or exercise of share options;
  • Any options which have been cancelled, or assigned or have been allowed to lapse
  • Any shares or securities where there have been changes to the right or restrictions attaching to them
  • Any shares or securities which have been converted or forfeited
  • The issue of loan notes and any other debt instruments, and their redemption.

It is therefore important to identify and review all transactions which may give rise to a reporting requirement, to avoid HMRC from issuing penalties of up to £1,000 after nine months and £10 a day thereafter.

If you would like our assistance in meeting your filing obligations, please contact Vicky Tunaley or email [email protected].