Employment Related Securities (ERS) Returns – Are You Ready?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: –
|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 firstname.lastname@example.org