Guidance

Tell HMRC about your employment related securities schemes

When and how to tell HMRC about new employment related securities (ERS) schemes, or schemes that have ceased.

From:
HM Revenue & Customs
Published
1 January 2014
Last updated
26 JanuaryFebruary 2024 — See all updates

IfYou you’remust anregister agent,all younew willERS onlyschemes be able to view and file returns on employmentHMRC relatedOnline securitiesServices, (ERS)including schemesone-off thatawards have already been registered — you will not be able to register or ceasegifts anof ERS scheme.

Find out how to register as a professional tax agent.shares.

Gifts and awards of shares in companies, often known as employment related securities (ERS), are commonly used by employers to reward, retain or provide incentives to employees. They can be tax-advantaged or non tax-advantaged.

When

Agents to
tell HMRC

You mustwill registeronly allbe newable ERSto schemesview and file returns on HMRCemployment Onlinerelated Services,securities including(ERS) one-offschemes awardsthat orhave giftsalready ofbeen shares.

Newregistered tax-advantaged— schemesyou shouldwill not be registeredable byto 6register Julyor followingcease thean taxERS yearscheme.

Find theyout werehow established.

Forto Enterpriseregister Managementas Incentivesa (EMI)professional schemes,tax youagent.

When mustto tell HMRC

New abouttax-advantaged aschemes grantshould ofbe an EMI optionregistered withinby 926 daysJuly offollowing the datetax ofyear thethey grant.were established.

The following schemes cannot be registered after 6 July:

  • Share Incentive Plans
  • Save as You Earn
  • Company Share Option Plans

You only need to register schemes without a tax advantage when there’s a reportable event, for example acquiring or disposing of securities, or assigning or releasing securities options.

What

For you’llEnterprise need

Management Incentive (EMI) schemes

ToYou registermust yourtell ERSHMRC about a grant of an EMI option scheme,within you92 needdays anof employerthe PAYEdate referenceof number.grant Youif canthe getoption thiswas fromgranted HMRCbefore PAYE6 OnlineApril Service2024.

If forit employers,was whichgranted on or after 6 April 2024, you canmust accesstell withHMRC yourabout Governmentthis Gatewayon useror IDbefore and6 password.July following the end of the tax year in which the grant is made.

If you needfail to registernotify asHMRC anwithin employer,these itdeadlines canyou takerisk uplosing toany 15tax workingbenefits daysfor toyou getand your PAYEemployees.

Before referenceyou number.

register

  1. You need to add the ERS service to HMRC Online Services before you can register an ERS scheme with us.

    How

  2. To register, you need an employer PAYE reference number — get this from HMRC PAYE Online Service for employers using your Government Gateway user ID and password.

If you need to addregister as an employer, it can take up to 15 working days to get your PAYE reference number.

Add the ERS service to HMRC Online Services

  1. Sign in to HMRC Online Services for employers.

  2. Select ‘Add a tax, duty or scheme now’.

  3. Select ‘Employers or intermediaries, for example PAYE for employers or CIS’.

  4. Select ‘Employment related securities (ERS)’.

HowRegister to register an ERS scheme with HMRC

Once the ERS service has been added to HMRC Online Services, you can register ERS schemes with us.

  1. Sign in to HMRC Online Services for employers.

  2. Select ‘ERS Online Service’.

  3. Select ‘Register a scheme or arrangement’.

  4. Select the scheme type you want to register and click ‘Next’.

  5. Fill in the self certification declaration.

  6. Re-enter your sign in details to complete the registration.

HMRC will allocate a scheme reference number within 7 days of registering an ERS scheme. You can find your reference number on HMRC Online Services by selecting ‘View schemes and arrangements’.

After you’ve registered

You must submit anyour ERS return for each registered ERS scheme every year until you cease the scheme, even if there is no reportable event. ERS returns must be submitted by 6 July following the end of the tax year or you may have to pay a penalty.

BeforeYou youmust:

  1. Submit submitan yourERS employment related securities return orfor notification,each youregistered needERS toscheme saveevery ayear copyuntil ofyou itcease for your own records.

    This is because the onlinescheme, serviceeven willif notthere saveis theno detailsreportable andevent.

  2. Keep youa willcopy notof beyour ablereturn tofor accessyour themown again.records.

How to authorise an agent to submit ERS returns

IfYou youwill wantneed anto authorise your agent if you want them to submit an ERS return on your behalf,behalf. they need to be authorised to do so first. To do this, you can either:

Read more about how to authorise an agent through your business tax account.

Tell HMRC that your ERS scheme has ceased

To tell HMRC about the cessation of your ERS scheme, you’ll need the Government Gateway user ID and password you used when you told HMRC about the scheme (ERS agents cannot cease an ERS scheme).

  1. Sign in to HMRC Online Services for employers.

  2. Select ‘View schemes and arrangements’.

  3. Select the scheme which you need to cease. You’ll be taken to another screen after selecting the scheme.

  4. Select ‘End of year returns’.

  5. Select ‘Provide a date of final event’ and enter the date the ERS stopped (the date can be in the past, but an annual return must be submitted for the tax year in which the final event date falls).

Published 1 January 2014
Last updated 26 JanuaryFebruary 2024 + show all updates

  1. We have updated the guidance with more information about when to tell HMRC about a grant of an Enterprise Management Incentive (EMI) option.

  2. Before you submit your employment related securities return or notification, you need to save a copy of it for your own records. This is because the online service will not save the details and you will not be able to access them again.

  3. If you need to register as an employer, it can now take up to 15 working days to get your PAYE reference number.

  4. A Welsh translation has been added,

  5. Information about the 2 ways an agent can be authorised has been added to the 'How to authorise an agent to submit an ERS return' section.

  6. Guidance has been added to explain how to add employment related securities to HMRC Online Services and how to register employment related securities with HMRC. Steps have also been added to show how to authorise an agent to submit employment related security returns on your behalf.

  7. Guidance on how and when you'll get your scheme reference number has been updated.

  8. More information about how to tell HMRC about your ERS schemes has been added.

  9. First published.

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