If you are a company that has operated any share plans or in the past tax year have issued shares, share options, or securities to employees, you may have to submit an employment-related securities (ERS) report to HMRC.
You may have to complete the form if any of the following apply:
- Any employee has acquired either shares or loan notes by way of their employment.
- There has been activity relevant to share options in the past tax year. This includes the grant, assignment, exercise, or release of share options.
- Any conversion of securities.
- Securities sold or acquired at an amount less than market value.
- Securities sold or acquired at an amount artificially enhanced to more than market value.
Late filing of this report results in a late filing penalty of £100. There will also be further penalties imposed should the filing be late by three months or more.
The legislation in this area is complex and not all events have to be reported. However, penalties of up to £5,000 can be imposed for inaccuracies on the return. Please get in touch if you require our assistance with this form or would like to discuss whether you have any reporting requirement
Click here to get more information about Employment-related securities (‘ERS’).