As previously reported in our September 2014 Clients & Friends Newsletter, new rules came into effect with the 2015-16 tax year commencing April 6, 2015 regarding the tax treatment of equity awards for inbound and outbound mobile employees who work in the United Kingdom for a portion of the vesting period. • For income tax purposes, the taxable amount realized from equity awards generally will be prorated based upon the employee’s period of service in the United Kingdom and outside of the United Kingdom during the vesting period of the award. • For National Insurance contribution (“NIC”) purposes, under proposed regulations (which have not yet been adopted), NICs on equity award income also would be subject to proration. However, the proration for NIC purposes would be based upon the number of days the employee spent within the NICs regime and outside of the NICs regime during the relevant period (generally, the vesting period). The determination of whether an individual is “within” or “outside” of the NICs regime would be based upon several factors other than whether or not the individual was working in the United Kingdom. Assuming the new NICs regulations are adopted in their current form, companies may need to adjust their income tax and NICs withholding and reporting procedures for equity awards held by mobile employees. For further information regarding the new UK mobile employee rules, please see the our March 2015 client alert or contact your GES attorney. Share Plan Reporting: Are You Ready for July 6? April 5, 2015 marked the end of the UK 2014-15 tax year which means that the deadline for submitting share plan annual returns is right around the corner. If your company operates a share plan in the UK, it is required to file an annual return with the UK tax authorities by July 6, 2015. The filing requirement applies to all share plans, whether tax advantaged or not. This year, companies are required to file the returns electronically and to do so must have registered their plans with the tax authorities in advance. To learn more about the registration process, please see the materials from our UK share plan reporting webinar here.