Employment Related Securities (ERS) deadline: 6th July 2024

The deadline for filing annual Employment Related Securities (“ERS”) returns is Saturday 6 July 2024 and applies to all UK employees or directors who hold shares, securities, or options by virtue of their employment. HMRC don’t issue filing reminders and missing the deadline may result in late filing penalties for employers.

Any shares issued or options granted to/exercised by/cancelled/released/lapsed/retained on leaving employment to current, former, or prospective employees, directors, or other people by virtue of their employment in the 2023/24 tax year must be reported and the information to be reported will depend on the type of share scheme.

Once a scheme has been registered, an ERS return filing (including nil returns) is required each year for each scheme. Such schemes include:

• Other ERS
• Enterprise Management Incentives (EMI)
• Share Incentive Plans (SIP)
• Company Share Option Plans (CSOP)
• Save As You Earn (SAYE)

If a scheme has been registered in error, or it is no longer required, the employer must ensure they cease the scheme.

Once a scheme is ceased, an annual return must still be submitted for the tax year in which the final event date falls.

An ERS scheme needs to be linked to a live employer PAYE scheme. If you are closing your PAYE scheme, you will need to cease the ERS schemes too; otherwise late filing penalties will still be issued.

You must register for a new Employer Related Security (ERS) scheme and submit an ERS return on or before 6 July following the end of the tax year in which either the first:

• award or option was granted
• reportable event happened

If you miss the deadline for registering, a late registration is only acceptable if HMRC agree that you have a reasonable excuse.

Submitting a late return, may result in you being charged late filing penalties. These are £100 penalty where a return is not submitted on or before 6 July 2024. Additional automatic penalties of £300 will be issued if the return is still outstanding 3 months after the original deadline of 6 July, and a further £300 will be charged if it’s still outstanding 6 months after that date.

You must still submit an end of year or nil return to meet your filing obligations, even if you’ve received and paid the initial penalty.