Employment Related Securities (ERS) Returns due on 6 July

If you have an EMI Options Scheme or other tax-advantaged share scheme (including CSOPs, SAYE and SIPs), the deadline for filing the annual return is on the 6 July 2024.

HMRC can levy fines to your business if you miss this filing date. HMRC has no obligation to issue reminders to a company about making these annual returns. It is therefore important that the company is prepared to make the annual returns on time.

Companies are also required to disclose where they have granted non-tax advantaged (unapproved) options to their UK employees/directors in an Other ERS annual return, among other types of securities transactions involving their UK employees.

Do I need to file an annual return?

If you have registered the EMI Scheme but there has been no activity in the tax year, you will still need to complete an online ‘nil’ return.

If your business has registered an EMI Options Scheme, you are required to file an annual return.

You need to include details of changes that have occurred within your EMI scheme for the tax year ending 5 April 2024.

Most common examples of events that would require disclosure in an EMI annual return include: 

• Changes to the description of the shares under EMI option;
• EMI options have been exercised;
• An employee who was granted EMI options has since left the business and their EMI options have lapsed.

If your company has a registered EMI scheme, regardless of whether there has been any EMI activity in the course of the tax year or not, you are required to submit an annual return.

This is the case for all registered share schemes with HMRC.

Further information

One point for clarification, the annual return is not to be confused with 

• registering the EMI scheme with HMRC online, or
• notifying HMRC of a grant of EMI options (within 92 days of the grant date).

If you have any questions on the Employment Related Securities annual returns or would like assistance, please do get in touch with Matthew Andrews.