2 minute read | June.14.2023
Companies that award shares, options or other securities to UK employees, directors or officer holders need to be aware of the July 6 deadline to submit an annual return to HMRC. The requirement covers any form of equity incentive, such as restricted or unrestricted shares, growth shares, share options and other forms of share awards and securities.
Companies do not need to register or report on share awards made to non-employees in the UK such as consultants or contractors, or to employees outside the UK. Awards made to Employer of Record employees need to be reported, usually by the Employer of Record employer.
Companies should register their ERS schemes with HMRC online (via the PAYE portal).
For each registered ERS scheme, companies must submit annual reports covering cover all equity incentive activity in the tax year 2022/2023, such as the grant, exercise, lapse, cancellation or variation of awards or the acquisition of shares. If no activity has occurred, companies must file a “nil” return.
Automatic penalties apply for late filings. A company can also face penalties for material inaccuracies
Please get in touch with the London Compensation and Benefits team if you require any assistance with ERS registration or reporting, or with your employee incentive arrangements more generally.