Digital Share Reporting - annual deadline fast approaching

Chris Campbell

Chris Campbell

Tax Senior Manager

The annual deadline for reporting share transactions is upon us again, and as part of the Government’s Making Tax Digital push, the reporting obligations continue as an online process. The Digital Share Reporting (DSR) obligation for employers covers securities (shares, loan notes etc) that involve employees and/or directors. All relevant “employment related securities” transactions that happened in the tax year ended 5th April 2017 must be reported to HMRC by 6th July 2017.

It is compulsory and penalties apply automatically in the event of failing to report.

Reportable Transactions

Transactions that are likely to be reportable include:

  1. When an employee or director acquires company shares in the employer company, or any company connected to this, such as the ultimate parent company, whether UK or abroad.
  2. When an employee or director is granted or exercises options, or is granted or has converted any vesting rights.
  3. The disposal of shares for more than their market value.

How do I know if I need to file?

Circumstances where DSR filing is required include:

  1. You have registered for submissions in the prior years
  2. You have an approved share scheme in place (i.e. EMI, CSOP, SIP)
  3. A ‘reportable event’ has occurred in the previous tax year.

DSR Administration

The process of registering as an employer and then reporting the share transaction can take at least three weeks, so where there are reportable transactions in the year, it is recommended that this is completed as soon as possible and well in advance of the 6th July 2017 deadline. 

We're here to help. If you have a query regarding Digital Share Reporting, please contact your usual Johnston Carmichael adviser, or call your local office.