I already have a joint election in place with my employees but it is only for options. Can I use it also for LTIPs without having to make a new election or seek further HMRC approval?
A. No. At the time that the company sought the employee’s acceptance to transfer the employers NICs, the employee would have been told under what specific circumstances the transfer of employers NICs would occur. If at that time the election referred only to liabilities on share option gains, then the election can be used only to transfer NICs on share option gains, not LTIPs. If the company wishes to extend their joint election to reflect the legislative changes made by Schedule 22 of Finance Act 2003 (i.e. include LTIPs) and the Section 3 & 4 of the National Insurance Contributions and Statutory Payments Act 2004 (i.e. restricted & convertible security awards), then an amended joint election must be submitted to HMRC for approval to be given. Where a company chooses to extend their joint election without reference to HMRC, then it must be stressed that the joint election will not be valid for any transfers made to the employee where HMRC approval was not sought and further there may
Related Questions
- I already have a joint election in place with my employees but it is only for options. Can I use it also for LTIPs without having to make a new election or seek further HMRC approval?
- Can a joint NIC election apply to share options granted under EMI (Enterprise Management Incentives) or CSOP (Company Share Option Plan)?
- Can the employees of a multi-level campus that includes an ALC participate in joint training?
