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

Annual returns

Section 40B sets out the annual return obligations for scheme organisers of SAYE (Save As You Earn) option schemes that have been notified to HMRC under paragraph 40A.

• The scheme organiser must file an annual return with HMRC for each tax year, starting from the tax year in which the relevant date falls, and continuing until the year in which the termination condition is met.
• Each return must contain whatever information HMRC requires — including information needed to determine the tax and capital gains tax liability of scheme participants and other relevant persons — and must be submitted by 6 July following the end of the tax year.
• If a key feature of the scheme is altered, or variations are made to reflect changes in share capital during the year, the return must include a declaration that the changes have not caused the scheme to breach the qualifying requirements set out in Parts 2 to 7 of the Schedule.
• The termination condition is met when all share options granted under the scheme have been exercised or can no longer be exercised, and no further options will be granted; if the organiser discovers any error or omission in a return, an amended return must be filed without delay.