Income Tax (Earnings and Pensions) Act 2003 section 40A

Notice of scheme to be given to HMRC

Section 40A sets out the notification requirements that must be met for a Save As You Earn (SAYE) option scheme to qualify as a Schedule 3 SAYE option scheme, including the content of the notice, the declaration required, and the consequences of late notification.

• The scheme organiser must notify HMRC and include a declaration that the scheme meets the requirements of Parts 2 to 7 of Schedule 3
• If notice is given on time, the scheme is recognised as a Schedule 3 SAYE option scheme from the relevant date; if late, recognition only begins from the start of the relevant tax year
• A late notification may still receive full recognition if the scheme organiser demonstrates a reasonable excuse for the delay to HMRC or, on appeal, to the tribunal
• HMRC must respond to a reasonable excuse claim within 45 days; failure to do so is treated as a decision that no reasonable excuse exists