Guidance

Employment Related Securities Bulletin 29 (June 2018)

Find out about the 2017/18 annual return deadline, Save As You Earn (SAYE) savings holiday and Enterprise Management Incentive (EMI) working time declarations.

Employment related securities (ERS) bulletins give information and updates on developments relating to employment-related securities, including the tax-advantaged employee share schemes.

We publish ERS bulletins when:

  • articles or updates are available
  • HMRC has any item to bring to your attention quickly

Any reference to Income Tax (Earnings & Pensions) Act 2003 (ITEPA) is to the amended legislation.

In Employment Related Securities Bulletin 28 we reminded you that you must submit electronically your employment related securities (ERS) annual return for 2017 to 2018 on or before 6 July 2018.

We also explained that all new schemes established during the 2017 to 2018 tax year must be registered by 6 July 2018.

After 6 July 2018 the following types of new schemes, established during 2017 to 2018, cannot register or submit an annual return:

  • Company Share Option Plan (CSOP)
  • Share Incentive Plan (SIP)
  • Save As You Earn (SAYE) schemes

SAYE extended pause

Autumn Statement 2017 announced an extension to the SAYE savings holiday for employees from 6 to 12 months.

From 1 September 2018 employees with a savings contract under a SAYE scheme can delay monthly contributions on a maximum of up to 12 occasions, without causing the savings contract to be cancelled.

SAYE guidance changes

You can find the SAYE temporary postponement of contributions guidance at Employee Tax Advantaged Share Scheme User Manual 34140. This will be updated on 1 September 2018 with the title ‘Schedule 3 SAYE option schemes: Linkage to Savings (Arrangement): Temporary postponement of contributions’.

Specimen SAYE prospectus

HMRC will update the Specimen SAYE Prospectus from 1 September 2018 to show that monthly contributions can be postponed on a maximum of 12 occasions.

SAYE extended pause further guidance

New SAYE contracts do not need to be issued for contracts that started before 1 September 2018.

All employees with a savings contract in place on 1 September 2018 can delay the payment of monthly contributions on a maximum of 12 occasions over the life span of the savings contract.

If the employee has already delayed the payment of contributions on 6 occasions, they can only delay payments on a further 6 occasions. They cannot delay payments on a further 12 occasions.

From 1 September 2018 the maximum number of months an employee can delay payments over the lifespan of their SAYE contract is 12 months in total.

EMI – working time declarations

HMRC has received questions about working time declarations (WTD) about employees who have not made and signed a WTD at the date of grant.

Employees have to make a new WTD for each new grant of EMI options, so that these options meet the legal requirements and are qualifying options for EMI.

WTDs made under a previous grant of EMI options cannot be carried forward and WTDs cannot be backdated. Read Employee Tax Advantaged Share Scheme User Manual 56010 for more information.

You can find more information about these in ERS Bulletin 26 (March 2018).

Contact HMRC about ERS Bulletins

Email: shareschemes@hmrc.gsi.gov.uk if you have any questions, feedback or suggestions for future articles.

Published 17 September 2018