Share scheme reporting deadline looms

The deadline for submitting employment-related securities (ERS) annual returns to HMRC is approaching – and missing it will lead to an automatic penalty.

Employers will need to file by July 6 if UK directors, employees, or employees with UK work duties have acquired shares or other securities in their company.

Filing is also a likely requirement if the company operates an employee share plan or arrangement. Tax-advantaged schemes include enterprise management incentives (EMI).

HMRC requires annual ERS returns to report events relating to securities – such as options, shares or loan notes – involving employees and/or directors, including both founding directors and non-executive directors.

HMRC will issue an automatic £100 penalty where the deadline is missed, and additional penalties of £300 where the return is three months and six months late.

To ensure that they meet their obligations for the tax year 2025/26, employers need to:

• Register any schemes that were new in 2025/26 with HMRC.
• Submit an ERS return for 2025/26 for each scheme. A nil return should be submitted where there are no transactions or events to report.
• Submit EMI notifications for any options granted in 2025/26.
• The employer should tell HMRC where a ERS scheme has ceased. The employer will still need to submit an annual return for the tax year in which the final event date falls.

HMRC says that when completing and submitting annual returns employers must use the correct and most up to date return template, otherwise its online service may reject the submission.

They should also save a copy of the return before they submit it, as they will not be able to access a copy through HMRC’s online service.

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