Employee Share Schemes – Your Reporting Deadline is 6 July 2025
If your business operates employee share schemes or has awarded shares to employees or directors during the tax year to 5 April 2025, now is the time to check your reporting obligations.
We know compliance deadlines can sneak up on you, so here’s a quick and practical breakdown to help you stay on track 👇
What is an ERS Return?
An Employment Related Securities (ERS) return is required annually to report any movements involving employee or director shares or options—including those for their family members.
Whether you’ve got a formal scheme in place or just carried out a one-off share issue, you may still be required to report!
When Do You Need to Report?
You will likely need to file an ERS return with HMRC by 6 July 2025 if any of the following apply to your business this tax year:
- You issued shares to employees or directors (or their family members)
- You granted share options
- You created or already operate a share scheme (including EMI, CSOP, SAYE, or SIP)
- A director or employee acquired shares due to their employment—even as a one-off
💡 Even if there have been no transactions this year, you must still submit a nil return for any registered scheme until it is officially closed.
Don’t Get Caught Out – Penalties Apply
Missing the 6 July 2025 deadline could lead to automatic penalties for late filing or incorrect returns—so it’s worth taking the time to get it right.
If you’re unsure what needs to be reported, or how to close a scheme with HMRC, professional advice can save you both stress and money.
Change to EMI Option Notifications
There’s a new reporting deadline for Enterprise Management Incentive (EMI) schemes:
For EMI options granted on or after 6 April 2024, you now have until 6 July 2025 (end of the tax year) to notify HMRC of the grant—no longer just 92 days after issue.
📌 Note: This notification must be submitted separately from the EMI annual return.
Financial Reporting Considerations
All share schemes, whether tax-advantaged or not, may have an accounting impact.
You’ll need a financial reporting valuation (different from a tax valuation) to determine the fair value of share options at the grant date—this is then recognised over the vesting period in your accounts.
Need help with valuations? We’ve got you covered!
What To Do Next:
- Review your records for any share movements this tax year
- Make sure your scheme is properly registered with HMRC
- Prepare to file by 6 July 2025—even if it’s just a nil return
- Check whether you’ve got an EMI option that needs early notification
- Reach out for support with valuations or compliance
At IN Accountancy, we can guide you through the process and ensure everything’s reported accurately and on time.
📞 Contact us today if you need assistance with ERS returns, EMI reporting, or scheme valuations—we’re here to help 😊
And don’t forget to check out our YouTube channel for more tax and accounting tips!
