HMRC has changed the way that new and existing employee share schemes are to be administered from 6 April 2014. The main changes are as follows:
1 HMRC will no longer approve any new schemes. Employers who wish to introduce new tax advantaged CSOP, SAYE or SIP arrangements will have to ‘self-certify’ that the scheme meets the terms for legislative reliefs.
2 There will all be a requirement for employers to register all new or existing employee share arrangements (tax-advantaged or otherwise) online. The registration must be undertaken via HMRC’s ‘PAYE online for employers’ service.
3 From April 2015 (i.e. for 2014/15 returns) employers must submit all annual returns online, i.e. this includes the normal annual returns for tax-advantaged schemes as well as the Form 42 relating to other types of share etc scheme awards and exercises.
Meantime HMRC has supplied updated versions of the manual returns required for 2013/14; these may be downloaded from http://www.hmrc.gov.uk/shareschemes/ann-app-schemes.htm.,
If you require any additional information on this topic please contact ET4B.