Consultation on employee share schemes NIC elections

22 April 2016

A consultation has been published on whether companies with non tax-advantaged share schemes require the continued availability of a National Insurance Contribution (NIC) election.

A NIC election is the means of legally transferring to the employee the Employer’s Class 1 NIC obligation on the occasion of chargeable events in connection with employment-related securities options, and with restricted or convertible employment-related securities.

This consultation is designed to gather views and evidence from companies with nontax-advantaged share schemes about whether there is a need for the continued availability of a NIC election. NIC agreements will continue to be available.

The consultation is particularly relevant for accounting and legal advisers of companies which offer non tax-advantaged share schemes, particularly multinational companies with UK employees.

The deadline for responding to this consultation is13 July 2016; by email to shareschemes@hmrc.gsi.gov.uk or by writing to Employee Shares & Securities Unit, HM Revenue and Customs, Room G53, 100 Parliament Street, London, SW1A 2BQ.

If you would like the Policy Team to respond on your behalf, please email us with NIC elections in the subject box.