Now that the 2025-26 tax year has ended, this is a key time for employers to review their Employment Related Securities (ERS) obligations.
What is ERS?
Employment Related Securities include shares or other securities that are acquired by employees or directors by reason of their employment.
Filing obligations
EMI annual returns must be filed each year for all registered EMI schemes. However, ERS reporting doesn’t just apply to formal share plans such as EMI, CSOP, SIP or SAYE. It can also be triggered by:
- One-off share awards
- Option grants, exercises or lapses
- Share transfers or restructuring
- Equity events involving directors
- Internationally mobile employees working in the UK
The deadline matters
All EMI and ERS annual returns for the year ended 5 April 2026 must be filed with HMRC by 6 July 2026, even where there has been no activity under a registered scheme.
Any EMI options granted up to 5 April 2026 must also be notified to HMRC by 6 July 2026. This is a separate requirement from the annual return, and missing the deadline results in the loss of valuable tax advantages.
What to do now
- Identify any EMI or ERS events during the year
- Check all relevant schemes are registered
- Check if any old schemes remain open
- Prepare and submit annual returns on time
- Notify EMI option grants on time
HMRC takes ERS compliance seriously, and late or incorrect filings can lead to automatic penalties or loss of tax advantages, even where no tax is due.
If you would like support reviewing your ERS position or preparing your filings ahead of the deadline, please get in touch.
This material is for informational purposes only and should not be relied upon as professional advice.
