HM Revenue & Customs Share Scheme Returns

There are some important deadlines looming for companies which operate share schemes. In brief:

by 6 July 2007, all companies are required to submit to HM Revenue & Customs ("HMRC"), annual returns in respect of HMRC approved schemes operated during the tax year 2006/2007; and by 6 July 2007, all companies are required to submit to HMRC a Form 42 if "reportable events" have arisen during the tax year 2006/2007.

Online filing

From 6 April 2007, companies will have the opportunity to file certain share scheme returns online. To use this facility, companies must be registered for the PAYE Online - Internet Service.

The important point to note is that HMRC will no longer issue paper returns to companies. Instead, it will issue notices to file share scheme returns to those companies which are known to it. Unapproved arrangements will still have to be reported without any prompting from HMRC.

Companies are encouraged to file returns online but may...