Income Tax (Earnings and Pensions) Act 2003 section 81D–81E

Notices and returns to be given electronically etc.

Sections 81D and 81E set out the requirement for share incentive plan notices and returns to be submitted electronically, and the penalties that apply when submissions are not made correctly.

• All notices under paragraph 81A and returns under paragraph 81B, including any accompanying information, must be submitted electronically unless HMRC permits an alternative method.
• HMRC must prescribe how electronic submissions are to be made and may set different requirements for different cases or circumstances.
• A penalty of up to £5,000, as determined by HMRC, applies if a return is not submitted in accordance with the required method or contains a material inaccuracy that is careless, deliberate, or not corrected as required.
• An inaccuracy is treated as careless if it results from the company's failure to take reasonable care.