APRIL 2020 | PAYROLL ON POINT
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IR35 PRIVATE SECTOR REFORMS POSTPONEDTOAPRIL 2021
As part of the additional measures announced to support businesses and individuals to deal with the economic impacts of Covid-19, it was announced on 18 March that the implementation of the Private Sector IR35 Reforms would be postponed until April 2021. There is currently little detail in support of this announcement, however the key message is that this is a deferral of the new rules not a cancellation. Once more information has been provided by HM Treasury will be able to provide a more comprehensive view on the potential impact this change will have on affected organisations businesses and individuals.
SHARE PLAN REPORTING 2020
HOW BDO CAN HELP Late returns trigger automatic penalties and late certification for tax advantaged share plans can be even more expensive. Our services include: X Identifying share scheme reporting obligations X Assistance with registering plans X Becoming your ERS agents so that we can complete and submit the share plan returns X Assisting with historic reporting X Advice on payroll and tax implications X International tax advice In most cases, we act as authorised agents and are always happy to help with additional company obligations that many agents will not, such as plan registration and ceasing plans. We recommend employers start the annual return process as early as possible. You will need time to identify all reportable events, such as where share options have been exercised or restricted stock units vested for internationally mobile employees.
Do you operate a share plan or have any type of equity transaction involving UK employees or directors? If so you will almost certainly have to submit a return to HMRC by 6 July to report transactions in Employment Related Securities (ERS). This is also known as Share Plan Reporting. The obligation applies to private and listed companies. Where plans are provided by an overseas parent the UK employing company typically reports. HMRC is focusing on the correlation between payroll, corporation tax deductions and share plan reporting. This year there is additional attention relevant to companies using net settlement following updated HMRC guidance. Net settlement is typically a US plan feature, we suggest all UK subsidiaries of US listed companies pay careful attention to the reporting requirements this year. WHEN IS THE SHARE PLAN REPORTING DEADLINE? Transactions should be included in the ERS return which must be submitted by 6 July. PENALTIES Penalties increase over time with £100 penalty for missing the 6 July deadline, £300 is issued on 6 October and a further £300 on 6 January. These are due for each registered plan. Daily penalties be applied from 6 April. The biggest risk for is the additional attention from HMRC.
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