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Remember To File Your Employment Related Securities Return

If you have employee shares or share options ...

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POSTED BY HELEN BEAUMONT ON 17/06/2020 @ 8:00AM

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 ...

Employment Related Securities returns do not collect any tax, they are simply HMRC's way to monitor the situation!

Employment Related Securities returns do not collect any tax, they are simply HMRC's way to monitor the situation!

copyright: nexusplexus / 123rf

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.

Until next time ...



HELEN BEAUMONT

 
 



Would you like to know more?

If anything I've written in this blog post resonates with you and you need some help with your Employment Related Securities return, do call me on 01908 774323, leave a comment below or click here to ping over an email and let's see how I can help you.

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About Helen Beaumont ...

 

Helen brings the personal tax planning experience of the top 20 tax companies to Essendon. Formerly of MacIntyre Hudson (with 45 offices nationwide), Helen worked at Chancery for more than 10 years before joining Essendon as the personal tax specialist.

Tax Planning can make a considerable difference to your tax liability. Helen has specialist knowledge and experience in tax planning and uses every opportunity to minimise your tax bill is utilised. By analysing your investments, income, profit and expenditures, Helen will provide strategic tax planning expertise that could offer significant savings, whilst delivering clear, honest advice and guidance.

When Helen is not at Essendon she spends time with her young son and likes going on long walks with the family dog.