Employee Related Securities (ERS) Tax Returns Explained for UK Share Schemes
Employee Related Securities (ERS) tax returns are a key annual requirement for UK businesses with share schemes or equity plans.
These returns must be submitted to HMRC by 6 July each year.
Missing the deadline or submitting incorrect information can result in penalties.
Key Points
- ERS returns must be submitted to HMRC by 6 July each year
- Late submissions can result in penalties
- Returns may be required even where no activity has occurred
- Coordination between advisers is often needed
What Is an ERS Tax Return?
An ERS tax return is an annual report submitted to HMRC detailing any reportable events related to employee share schemes.
This includes schemes such as:
- EMI schemes
- SAYE (Save as You Earn), SIP (Share Incentive Plans)
- Unapproved share schemes
- Other equity incentive arrangements
Even if no reportable events have occurred, a return may still need to be submitted.
What Needs to Be Reported?
Businesses must report a range of events, including:
- Grant of share options
- Exercise of options
- Lapse or cancellation of options
- Acquisition or disposal of shares
The specific reporting requirements will depend on the type of scheme in place.
Common Challenges
ERS reporting can be more complex than many businesses expect.
Common challenges include:
- Understanding whether a return is required
- Identifying what needs to be reported
- Ensuring accurate and complete information
- Coordinating between legal advisers and administrators
- Meeting the HMRC deadline Without clear guidance, businesses may risk errors or delays.
Practical Steps to Take Now
If your business operates a share scheme or equity plan, it is important to take action well in advance of the 6 July deadline.
Key steps include:
1. Confirm which schemes require reporting
2. Gather all relevant data for the tax year
3. Check previous filings for consistency
4. Coordinate with advisers and administrators
5. Ensure submission is completed before the deadline
With the 6 July deadline approaching, it is important to act early.
If you are unsure what needs to be reported or how to move forward, we can help. Book a consultation to ensure your ERS reporting is handled with clarity and confidence.
