Employment Related Securities (ERS) Returns – Are You Ready?

Employment Related Securities (ERS) Returns
Posted 2020 by Chris Davies

The annual cycle for submitting Employment Related Security (ERS) Returns closes on 6 July 2020.

The report, to be filed electronically with HMRC, should detail: –

  • The acquisition by officer or employees of securities (including shares); or
  • Of an interest in securities or a securities option available to an officer or employee of the company by virtue of their employment;
  • Transactions which took place in the 2019/20 tax year.

Reporting must be done via a Company business tax account in the Government Gateway.

Penalties for late Returns are charged as follows: –

Late by….Penalty
After 6 July£100
3 months late£300
6 months late£300
9 months late£10 per day

There are also penalties for inaccurate returns.

Common exemptions from ERS reporting are: –

  • Newly incorporated companies
  • Newly incorporated companies – allotment of further shares
  • Shares acquired by the company formation agent
  • HMRC Approved Schemes.

There are other events where reports may not be required, these are:

  • Transfers of shares in the normal course of the domestic, family or personal relationships
  • Flat Management Companies
  • Members’ clubs (formed as companies)

Anyone requiring assistance with these Returns can contact us at reception@ross-brooke.co.uk