We are carrying out a programme to assist customers and tax agents with Employee Share Scheme (ESS) reporting.
Over the coming year, we will be educating various interest groups on ESS reporting, income, deductions, and the transitional rules. We will also be encouraging them to file voluntary disclosures for any ESS benefits that have not been reported, or where mistakes have been identified.
We will be running compliance activity at the same time as this programme. Non-reporting of ESS benefits is a tax shortfall and this may lead to shortfall penalties.
It's important that employers communicate clearly to their employees the tax to pay on an ESS benefit, especially if the employer has elected not to deduct PAYE.