--- title: "COVID-19: HMRC Guidance on Share Schemes" url: https://taxdisputes.co.uk/2020/06/covid-19-coronavirus-hmrc-guidance-share-schemes-say-sip-csop-advice/ date: 2020-06-22 modified: 2026-06-02 author: "Annabel Clarke" description: "HMRC have issued further guidance on how employment-related securities will be affected due to the pandemic, including how arrangements will interact with the Coronavirus Job Retention Scheme. Save as you..." categories: - "Coronavirus" - "COVID-19" - "HMRC" - "News" - "PAYE" tags: - "Coronavirus" - "Covid-" - "COVID-19" - "HMRC Tax Assessment" - "Tax" image: https://taxdisputes.co.uk/wp-content/uploads/2019/07/HMRC-Letter-Legal-Advice-Solicitor-Tax-Dispute-UK.png word_count: 579 --- # COVID-19: HMRC Guidance on Share Schemes [HMRC ](https://lexlaw.co.uk/solicitors-london/coronavirus-covid-19-and-its-impact-on-uk-litigation/)have issued further guidance on how employment-related securities will be affected due to the pandemic, including how arrangements will interact with the [Coronavirus ](https://lexlaw.co.uk/solicitors-london/coronavirus-covid-19-and-its-impact-on-uk-litigation/)Job Retention Scheme. ## Save as you Earn (SAYE) [HMRC guidance](https://www.gov.uk/tax-employee-share-schemes/save-as-you-earn-saye) confirms that all employees that have a saving contract in place on 10 June 2020 are able to delay the payment of monthly contributions, beyond the allotted 12 months, if the delay is due to impacts from [COVID-19. ](https://lexlaw.co.uk/solicitors-london/coronavirus-covid-19-and-its-impact-on-uk-litigation/) The maturity date for the contract will be put back for the total number of months that the payments are delayed for. [SAYE contributions](https://www.gov.uk/tax-employee-share-schemes/save-as-you-earn-saye) can continue to be deducted from payments that are received through furloughed payments from the [Coronavirus ](https://lexlaw.co.uk/solicitors-london/coronavirus-covid-19-and-its-impact-on-uk-litigation/)Job Retention Scheme. Those who are unable to make monthly contributions from their salary, due to the pandemic, are able to pay by standing order instead. ## Share Incentive Plan (SIP) HMRC have further confirmed that payments to furloughed workers can constitute as salary and [SIP ](https://www.gov.uk/tax-employee-share-schemes/share-incentive-plans-sips)contributions can be deducted from those payments. [SIP participants](https://www.gov.uk/tax-employee-share-schemes/share-incentive-plans-sips) are already able to stop their deductions from their salary, however any missed payments due to [coronavirus ](https://lexlaw.co.uk/solicitors-london/coronavirus-covid-19-and-its-impact-on-uk-litigation/)will not be allowed to be made up later on. ## Company Share Options Plan (CSOP) [HMRC ](https://www.gov.uk/government/publications/company-share-option-plan-end-of-year-return-template/company-share-option-plan-guidance-notes)accepts that where employees and full-time directors are furloughed, options granted before the pandemic will remain qualifying on the basis that they were full-time directors and qualifying employees at the time of the grant. ## Valuations When [EMI ](https://www.gov.uk/tax-employee-share-schemes/enterprise-management-incentives-emis)options are available to be granted HMRC can be contacted to agree an appropriate valuation. HMRC will normally grant [EMI options](https://www.gov.uk/tax-employee-share-schemes/enterprise-management-incentives-emis) within a maximum of 90 days following the agreement of the valuation by HMRC however, due to [coronavirus ](https://lexlaw.co.uk/solicitors-london/coronavirus-covid-19-and-its-impact-on-uk-litigation/)HMRC have advised there may be delays with the process. If there has been no change that may affect an appropriate value then: - any [EMI valuation](https://www.gov.uk/tax-employee-share-schemes/enterprise-management-incentives-emis) agreement letters that have already been issued, where the 90 day expires on or after 1 March 2020, can be automatically treated as being extended by a period of 30 days; and- any new [EMI valuation ](https://www.gov.uk/tax-employee-share-schemes/enterprise-management-incentives-emis)agreement letters issued on or after 1 March 2020 will be valid for an extend 120 days. ## Deadlines for registering new schemes and filing returns Due to the effect of [COVID-19](https://lexlaw.co.uk/solicitors-london/coronavirus-covid-19-and-its-impact-on-uk-litigation/) some employers have found it difficult to meet ERS tax obligations such as registering new schemes and filing returned by the 6 July 2020 deadline. If the difficultly to meet the obligations has been affected by the pandemic, HMRC will consider coronavirus as a [reasonable excuse](https://www.gov.uk/tax-appeals/reasonable-excuses), however, you must explain how the coronavirus had an effect and pay the return as soon as possible. ## Expert London Tax Investigation Lawyers If you need [HMRC ](https://www.gov.uk/government/organisations/hm-revenue-customs)[Tax Investigation](https://taxdisputes.co.uk/hmrc-tax-investigations-solicitors-london/) advice, we are available to aid you at every stage of the [HMRC ](https://www.gov.uk/government/organisations/hm-revenue-customs)investigate process. Members of our legal team have first-hand experience and knowledge of the internal workings of [HMRC](https://www.gov.uk/government/organisations/hm-revenue-customs). 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