If your company has issued shares or options to employees or directors, now is the time to check whether you need to report Employment Related Securities (ERS) to HMRC.
What is ERS?
ERS refers to shares or securities acquired by employees or directors as part of their employment. This could include:
- Share options (including EMI schemes)
- Restricted or convertible shares
- Growth shares
- Any transfer of shares for employment-related reasons
If your company has issued or transferred shares to employees or directors, you may have a legal obligation to report it – even if no tax is due.
What needs reporting?
All reportable ERS events must be declared to HMRC via their online ERS service. This includes:
- The set-up of a new share scheme
- Granting or exercising share options
- Acquisition of shares by an employee or director
- Any changes to existing schemes
You will need to register the scheme with HMRC (if not already done) and file an annual return, regardless of whether or not there’s been activity during the tax year. For example, you will need to submit a return or a nil return even if:
- There have been no transactions
- You have appealed a late filing penalty
- You have registered the scheme in error or there’s a duplicate scheme
- You did not get a reminder from HMRC
- You have made a one-off award
When do I need to report?
The deadline to submit your ERS return for the 2024/25 tax year is 6 July 2025. Failure to file on time can lead to automatic penalties, starting at £100 and increasing the longer it’s outstanding.
Actions to take now
If you think your business might fall under the ERS rules, now is the time to take action and make sure everything is in order before the deadline:
- Check whether any shares, options or similar rights were issued to employees or directors during the year.
- If you haven’t already done so, register your share schemes with HMRC via the online ERS service.
- Make sure you have all the relevant information ready to complete your ERS submission accurately.
- If you’ve registered a scheme but had no activity this year, you still need to file a nil return.
How can we help?
If you need help with ERS compliance or filing your return, our team are here to help. Get in touch with your usual contact, complete our contact form or call 0161 905 1616.