It is time to file your employment related securities (ERS) tax return with HMRC. The deadline is 6 July 2017.
What to report?
All employers have to file annual tax returns reporting grants, lapses, exercises and awards of shares or share options during the tax year 6 April 2016 to 5 April 2017 (the tax year).
If you operate a tax advantaged scheme such as EMI you will need to file a tax return even if there has been no activity during the tax year. This means that, for example, if you have awarded EMI options several years ago even if there has been no lapse or exercise during the tax year – you will still need to file a return. But if, say, you awarded unapproved share options last tax year and none of them have been exercised during the tax year, no return has to be filed.
How to submit a return?
You submit an ERS return via your PAYE reporting system using the ERS online service. HMRC guidelines and tax return templates can be downloaded at https://www.gov.uk/guidance/tell-hmrc-about-your-employment-related-securities
If you require assistance with your tax return we are happy to help.
Late filing penalties
If you do not file the ERS tax return on time there are automatic fines. HMRC operates a sliding scale depending on the length of delay.