Tax and Reporting Implications of Employment Related Securities (ERS)

Understand the detailed technical guidance on the tax implications of employee share schemes & option schemes and learn how to apply them.

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A half-day ERS course presented in a virtual class from 9:30am to 1:00pm UK time

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Download: Course Category Brochure | Course Outline

Introduction to Share Awards

ERS training begins by looking at the meaning of employment-related securities
Phantom share awards
Scope of legislation (ITEPA)
Exception – family transactions

Basic Principles

Income tax
National insurance
Capital gains tax on share issued to employee’s awards

Restricted Securities

Exceptions to normal tax rules
Tax charges arising when restrictions removed
Elections that can vary the normal tax rules

Convertible Securities

Normal tax rules
Exception
Calculations

Shares Artificially Suppressed in Value

Charge on acquisition

Shares Artificially Enhanced in Value

Employment related securities training covers the de minimis exception
Charging rules

Shares Acquired at Less Than Market Value (if not caught by items above)

Amounts treated as employment income

Securities Disposed of for More Than Market Value

Post-Acquisition Benefits Received Concerning Employment-Related Securities

Notional Loans

When they arise
Taxable amount
Example
Discharge of loan

Unapproved Share Options

Tax charge on exercise

Approved Share Schemes (Sharesave, CSOPs, EMI, SIPs)

Conditions
Tax charges

Internationally Mobile Employees

ERS course covers the importance of residence for tax charges
Calculation of chargeable UK income from employment share schemes reporting
Recent case law decisions

Using Share Awards in the Current Environment – Trading Salary for Shares

Annual Employment Related Securities Reporting of Share Schemes

Case Studies

Calculations with restricted securities
Effect of s431 election
Effect of s430 election
Calculations with convertible securities
When notional loans arise and the consequent tax charges
Notional loans when the shares are disposed of
Share options for internationally mobile employees (foreign service income and taxable share income) conclude ERS online training

At Redcliffe Training our Employment Related Securities course is delivered by a UK Chartered Accountant and Chartered Tax Advisor. Our expert won the John Wood Medal in the November 1995 CIOT sitting for the best paper on business taxation. He was previously Director of Finance and Taxation Programmes at BPP Professional Education and has delivered IFRS, US GAAP, UK Tax and VAT to a multitude of organisations worldwide since 1992.

Our ERS online course leader has particular experience in delivering bespoke IFRS and US GAAP training programmes to multinationals in the financial services, transport and energy sectors as well as delivering UK tax and VAT update programmes to accounting and law firms.

Our trainer is passionate about training and his enthusiasm ensures that the participants enjoy the learning experience whilst gaining knowledge through their engagement. He encourages you to ask questions and discuss practical issues you might have. Our ERS course leader also provides consultancy services to companies and accounting firms, including provision of tax and VAT advice, reviewing accounting policy manuals and advising on accounting treatments of various transactions.

Redcliffe’s ERS online course allows participants to gain a clear understanding of the employment-related securities guidance, including the exceptions that apply to the rules.
Identify when income tax and national insurance charges arise in connection with employment-related securities.
Identify what elections can be made to vary the normal tax treatment and in what circumstances this is beneficial or disadvantageous.
Understand the conditions that must be met for a scheme to be ‘tax-advantaged’, including Sharesave schemes tax, Company Share Option Plans, Enterprise Management Incentive options and Share Incentive Plans.
Those attending ERS training will identify what aspects of each scheme the company operates have to be reported in the ERS annual return share schemes.

Our ERS course is highly practical and will include multiple examples to assist with understanding the rules.
It is presented by an independent training professional and can be a completely independent look at the issues raised.
Please note that this course encourages participation and allows for all questions and clarifications to be considered.
We consistently ensure our employment related securities training is completely current and relevant.

This employment related securities course is a ‘must know’ for professionals who deal with the tax compliance of individuals in receipt of ERSs and/or the companies who issue them.

ERS online training is also a ‘nice to know’ for non-tax professionals to understand the tax implications for individuals and companies who are party to ERSs.

Employment related securities training is designed to help attendees understand the employee share scheme tax implications of employee share schemes and option ERS schemes. It will discuss the various income tax and potential national insurance liabilities arising from non-tax-advantaged schemes and the conditions that need to be met for a scheme to be tax-advantaged.

Delegates will learn through multiple examples how the calculations work and what information must be reported to HMRC each year with respect to share schemes in the annual employment-related securities return.

Very practical and understandable course.
The presenter was excellent and easy to ask questions. Well structured. I will be more confident with my understanding of how to approach ERS awards in my organisation and the implications from a compliance perspective.

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(min. 50 participants)