Updated HMRC guidance on end of year return templates and using the ERS service, and changes to CSOP schemes to come into effect

Updated HMRC guidance on end of year return templates HMRC has announced in Employment Related Securities Bulletin 47 that it will be introducing some changes to Employment Related Securities (ERS) annual filings templates from 6 April 2023. Under the new ERS templates, completion of the following optional fields will become mandatory for returns submitted on … Read more

Autumn Statement highlights – lowering of additional income tax rate threshold, reduction in CGT and dividend income tax allowances

Following on from the reversal of much of the mini-budget on 17 October, in today’s Autumn Statement the Chancellor announced a number of measures which are relevant to remuneration and incentives. In particular there will be a reduction to the threshold at which the 45% additional rate of income tax applies, the freezing of other … Read more

Updated HMRC guidance on EMI options and s.431 elections

As highlighted in ERS Bulletin 46, HMRC has published updated guidance in the Employee Tax Advantaged User Manual on enterprise management incentives (EMI) options which should clarify how EMI option plans should be drafted and operated. ERS Bulletin 46 also refers to the updated guidance published by HMRC in July 2022 on section 431 elections.  … Read more

Revisions to the mini-budget of 23 September 2022

The new Chancellor, Jeremy Hunt, today announced a number of revisions to proposals put forward in the mini-budget of 23 September 2022. The key changes relevant to remuneration and incentives are: the income tax basic rate will remain at 20% until economic conditions allow for it to be cut; as already announced, the 45% income … Read more

Changes to NICs rates from 6 April 2022

As announced by the government in September 2021, the rates of employee’s and employer’s Class 1 National Insurance contributions increase by 1.25% for the 2022/23 tax year.  This is intended to be a temporary increase with the increased rates being replaced by the Health and Social Care Levy from 6 April 2023. For further information … Read more

Tax-advantaged share plans: HMRC extends share valuation period to 120 days

HMRC has published amendments to its Shares and Assets Valuation Manual as part of which it has extended the period for which an agreed valuation of unquoted shares will remain valid for the purposes of grants under a tax-advantaged share plan from 90 to 120 days. This 120-day period is relevant only to valuations in … Read more

Health and Social Care Levy and increase in tax rates applicable to dividends

The Prime Minister on 7 September 2021 announced plans to substantially increase funding for health and social care over the next three years, to be funded by a new tax: the Health and Social Care Levy and on 8 September 2021, the Health and Social Care Levy Bill 2021-22 was introduced. Temporary increase to NICs rates … Read more