Employers and Trustees: Are you ready for the annual Share Scheme Reporting Deadline?
Employers must report details of share incentive schemes operated during 2024 with Revenue by 31 March 2025. The same deadline applies to trustees of certain share schemes in 2024.
What and How to Report?
Form ESA
Share incentive: Restricted Stock Units, Discounted or Free Shares, Restricted Shares, Convertible Securities, Forfeitable Shares, Growth Shares, Hurdle Shares, Phantom Shares, Stock Appreciation Rights and any other award with a cash payment equivalent to shares.
Reportable Events: The award of shares, or the award of cash payments based on the value of shares.
The reporting of the grant of Restricted Stock Units remains optional.
How to file: Online through ROS
Form RSS1
Share incentive: Share options and other rights
Reportable Events: The grant, exercise, assignment and/or release of the options.
How to file: Online through ROS
Form KEEP1
Share incentive: Key Employee Engagement Programme (‘KEEP’) options
Reportable Events: The grant, exercise, assignment and/or release of the options.
How to file: Online through ROS
Form ESS1
Share incentive: Approved Profit Share Schemes (‘APSS’)
Reportable Events: Details of shares appropriated, disposed and transferred, as well as capital receipts by the trustees. A NIL return should be filed if there has been no activity.
How to file: Online through ROS
Form SRSO1
Share incentive: Save As You Earn (‘SAYE’)
Reportable Events: The grant and exercise of the options. A NIL return should be filed if there has been no activity.
How to file: Paper filing
Form ESOT1
Share incentive: Employee Share Ownership Trusts
Reportable Events: Details of the funds received by the trustees and the acquisition, sale and transfer of shares. A NIL return should be filed if there has been no activity.
How to file: Paper filing
Remember!
Employers and trusts must be registered for share scheme reporting prior to submitting any returns to Revenue. For those reporting for the first time, it can take about 3 days for a registration to complete so this will need to be factored into timelines for preparation and filing.
It’s also important to note that these reporting requirements are in addition to any payroll reporting obligations of employers for those share awards, as well as any obligation by trustees to file a Form 1 declaration of trust income and capital gains.
What if I don’t report?
Failure by employers and trustees to comply with their share scheme reporting requirements can have significant implications for a business. It may result in Revenue conducting a compliance intervention, imposing fines or withdrawing their approval of certain tax-efficient schemes such as an APSS or SAYE. Additional scrutiny from Revenue can disrupt business operations, cause financial strain and open up other areas of risk for Revenue review. Employee benefits, such as share awards, has been a key focus of Revenue during PAYE compliance interventions in recent times.
Next Steps
Employers and trustees must now review their share award activity during 2024 and prepare the relevant reporting return.
This annual exercise should be treated as an opportunity to review your share incentives schemes and evaluate whether the current format still works for your business. Are they aligned with your business goals? Do they still provide value to the company, employees and directors?
How we can help
McCann FitzGerald LLP provides expert advice on the establishment and implementation of share incentive schemes. We can also help businesses prepare and file the relevant share scheme reporting returns. Please contact the team below or your usual McCann FitzGerald LLP contact for further information.
This document has been prepared by McCann FitzGerald LLP for general guidance only and should not be regarded as a substitute for professional advice. Such advice should always be taken before acting on any of the matters discussed.
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