Remember To File Your Employment Related Securities Return

The 2019/20 tax year is finally over and there are now a number of tax filings that employers need to send in to HMRC. One of these is the Employment Related Securities filing, or ERS for short ...

An Employment Related Securities filing needs to be made if an employee, including a director, has made any transactions that involve shares or other securities in the company that employs them.

"Employment Related Securities (ERS) include shares, options and loan notes!"

Many companies use shares or share options as a way to reward employees by giving them a stake in the business. There are a number of tax-efficient methods for both the company and the employee, including a number of Government-backed schemes.

HMRC needs to know that this is happening as some taxpayers have used ERS as a mechanism for tax avoidance. Anti-avoidance laws have come into force as a result of this, and HMRC likes to monitor ERS use carefully. Filings can be made online, and penalties are applied for late filing or non-completion.

"Any reportable events that have happened in the 2019/20 tax year must be included!"

Employment Related Securities returns do not collect any tax, they are simply HMRC's way to monitor the situation, but it does mean that even non-taxable transactions must be reported which is why professional tax advice may be required.

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