Employment Related Securities (ERS) Returns: Meeting the 6 July Deadline
As the 6 July 2025 deadline approaches, UK employers must ensure compliance with Employment Related Securities (ERS) reporting requirements. At Alexander & Co, a leading UK firm of tax advisors and chartered accountants, we provide expert guidance to help businesses navigate these obligations efficiently.
Below, we provide a useful guide on how to meet the 6 July deadline and also what actions to take now. Please contact Alexander & Co if you require assistance.
Published by Alexander & Co | Expert Tax Advisors
What are Employment Related Securities (ERS)?
Employment Related Securities (ERS) encompass shares or securities acquired by employees or directors due to their employment. They can also be acquired because of someone’s employment via friends, family or business partners. This includes formal share schemes and also one-off awards or gifts of shares.
Key Reporting Requirements for Employment Related Securities
Annual ERS Returns: All employers need to submit an ERS return for each individual registered ERS scheme by 6 July following the end of each tax year. This applies even if no transactions occurred during the year, necessitating a ‘nil return’.
Registration of New Schemes: New ERS schemes, including tax-advantaged plans like EMI, CSOP, SAYE, or SIP, must be registered electronically before filing the annual return. The registration process can take up to seven days, so early action is advised.
Consequences of Missing the ERS Deadline
Failing to submit the ERS return by 6 July 2025 can result in a range of automatic penalties:
- £100 initial penalty simply for missing the deadline.
- £300 if the return is not subsequently submitted by 6 October 2025.
- £300 if the return is still outstanding by 6 January 2026.
- £10 per day for continued failure to file, starting from 6 April 2026.
How Alexander & Co Can Assist with advice on Employment Related Securities
At Alexander & Co, we specialise in helping businesses meet their ERS obligations:
- Identifying Reportable Events: We assess your company’s activities to determine what needs to be reported to HMRC.
- Preparing and Submitting Returns: Our team ensures accurate completion and timely submission of ERS returns.
- Advising on Share Schemes: We provide guidance on creating and managing share incentive schemes tailored to your company’s needs.
Take Action Today
Because the 6 July 2025 deadline approaching, it’s crucial to act promptly. Contact Alexander & Co for expert assistance with your ERS reporting requirements, to ensure compliance and avoid any penalties.
Contact Alexander & Co
For personalised assistance with your self assessment tax returns or any other tax-related queries, please contact Alexander & Co to see how we can assist you:
- Phone: 0161 832 4841
- Email: info@alexander.co.uk
- Website: www.alexander.co.uk
Our offices are conveniently located in Manchester and London, serving clients across the UK.
This article was written by Louis Moore BFP ACA, Private Client Tax Manager at Alexander & Co. Louis is a Chartered Accountant and a member of the ICAEW
