HMRC has published further guidance on Enterprise Management Incentives (EMI) working time declarations and deferring monthly Save as you Earn (SAYE) earnings.
HMRC has published Employment Related Securities Bulletin 29.
This contains a reminder that on or before 6 July 2018:
The Bulletin also contains important updates regarding Enterprise Managment Incentives (EMI) working time declarations and deferring monthly Save As You Earn (SAYE) savings.
The EMI legislation requires, amongst other things, that EMI option holders:
HMRC has confirmed that a new working time declaration must be provided to the employer in respect of each grant of EMI options.
In HMRC’s view, it is not possible for a working time declaration given in relation to the grant of one EMI option also to apply to any subsequent grants.
This is the case even where there has been no change to the employee’s working pattern, and the working time requirement has been met continuously since the first working time declaration was made.
Currently, employees enrolled in a savings contract linked to a SAYE option can defer payment of up to six monthly contributions by up to six months in total.
From 1 September 2018, monthly contributions may be deferred on up to 12 occasions over the duration of the savings contract.
HMRC has confirmed that all employees with SAYE savings contracts in place on 1 September 2018, will be able to defer monthly contributions on this basis, without any requirement for those contracts to be amended.
However, any contributions deferred prior to 1 September 2018 will count towards the new 12 month deferral limit.
KPMG can assist employers to select, design and implement tax advantaged and other incentive arrangements.
If you have any queries, or would like to talk through EMI or other employee incentive arrangements, please get in touch with your normal contact or e-mail firstname.lastname@example.org.