HMRC deadline looms for Employee Share Plan tax return

If your business has granted options or issued shares to UK employees, it’s that time of year again and HMRC is ready and waiting for your annual employee share plan return.

What they won’t do is remind you to file it. That responsibility rests entirely with you as the employer.

You must file your return on HMRC’s Employment Related Securities (ERS) portal by 6^th July 2026.

Missing the deadline can trigger automatic penalties and potential tax complications, so it’s worth getting ahead now, as Jeremy Glover, Partner in the Tax & Incentives team at Jurit, explains.

Registering Your Share Plan

Before filing your Employee Share Plan return, you must make sure your plan is registered with HMRC.

Every employee share plan, whether tax-advantaged or otherwise, must be registered by 6 July following the tax year in which the first awards were made (for most, that means the tax year ending 5 April 2026).

This includes:

• Tax-advantaged schemes such as Enterprise Management Incentives (EMIs), Company Share Option Plans (CSOPs) and Share Incentive Plans (SIPs).
• Non-tax-advantaged schemes like long-term incentive plans (LTIPs), unapproved share option plans and growth share plans.

If registration isn’t complete by the deadline, you risk losing valuable tax reliefs, and awards under the plan might not qualify for the beneficial treatment intended.

How to Register and File

Registration and filing are both done through HMRC’s ERS online system, which is linked to your PAYE Online account.

If you are already using PAYE online, simply add the ERS service and follow the steps to register your scheme and upload your annual return.

New to the system? Then you’ll need an activation code, sent by HMRC via post.

This process can take up to two weeks, so be sure not to leave it too late. Start registration early to avoid any last-minute hurdles, and remember, you cannot delegate the registration process to an agent, even if one assists later.

Who Must File?

You must file an annual ERS return if:

• You operate any tax-advantaged or non-tax-advantaged share plan.
• You’ve simply granted options or allocated shares to an employee, even without a formal plan.
• Awards were made to any “officeholder,” including non-executive directors.

In short, if there were any awards, there’s a return to file.

Nil Returns Are Still Required

One common misunderstanding we come across time and again, is the assumption that no activity means no filing is necessary. That isn’t the case.

Even if your share plan has seen no exercises, lapses, or leavers during the tax year, HMRC still expects a nil return. Failing to submit one will trigger penalties just as if you’d missed an active return.

What Information Needs to Be Reported to HMRC?

Each return must report all grant, lapse, and exercise activity, including dates, reasons for leavers, and share values at the relevant events.

If your company sold shares or options as part of a takeover, then you must let HMRC know and confirm if your plan has been wound down.

Penalties for Late Filing

HMRC’s penalty regime is straightforward but strict. While initial penalties may seem modest, they escalate quickly:

• Miss the 6 July deadline: £100
• Still late after 3 months (6 October): +£300
• Still late after 6 months (6 April): +£300
• Ongoing lateness: £10 per day

Repeated non-compliance can raise ref flags and increase the likelihood of wider HMRC scrutiny, wit HMRC reserves “reasonable excuse” relief only for exceptional circumstances, and holidays don’t count!

And beware: the ERS portal often becomes slow or overloaded near the deadline. Filing early is strongly recommended.

Expert Support for Peace of Mind

If your upcoming 6 July return is weighing on your mind, you’re not alone.

Employee share plans can be technically complex, particularly where there have been changes during the year, corporate transactions, or uncertainty around reporting obligations.

Jurit LLP works with businesses, founders and HR teams to ensure share plans are structured correctly and remain compliant with HMRC requirements. Their team can support with:

• Reviewing share plans to ensure correct registration and compliance
• Advising on tax-advantaged schemes such as EMI, CSOP and SIP arrangements
• Assisting with accurate and timely ERS return filings, including nil returns
• Providing guidance following corporate events such as acquisitions or restructures

Getting it right first time avoids unnecessary penalties and protects the intended tax benefits for both your business and your employees.

If you would like support ahead of the deadline, our tax and incentives lawyers would be happy to help.