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Time running out to submit your EMI and ERS returns

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The deadline to submit Enterprise Management Incentive (EMI) annual returns and “Other” Employment Related Securities (ERS) returns (previously known as “Form 42”) is fast approaching.

Returns must be submitted online, on the company’s Business tax account, by 6 July 2022.

If your company has an EMI scheme in place, then a return must be submitted each year. This return should disclose any EMI transactions or changes that took place during the year ended 5 April 2022, such as option exercises, option lapses, or changes to option holders’ working arrangements.

However, a return must still be submitted even if there have been no such changes or transactions – a “nil” EMI return.

If your company has issued new shares or transferred existing shares to any employees or directors during the year ended 5 April 2022, then this may need disclosing on an Other ERS return. There are some exemptions, for example, shares issued on incorporation.

Be aware that if either an EMI or an Other scheme remains open online from a previous year, then you will need to submit a return for the year ended 5 April 2022, even if there were no reportable transactions during the year.

If the submission deadline of 6 July is missed, then HMRC will issue automatic late filing penalties, starting at £100 if one day late, £300 if three months late, and so on.

Please get in touch with Hannah Charlton or your usual BHP contact if you are need any assistance regarding submitting a return.