Date posted: 5th May 2026
With the Employment Related Securities Reporting Deadline 6 July 2026 fast approaching, employers should review their 2025/26 share schemes and any employment-related share transactions to ensure full compliance.
Whether you operate formal employee share schemes or have ad‑hoc share awards or option arrangements, ERS reporting obligations can apply — and penalties may arise for missing the filing deadline.
What is ERS reporting?
ERS reporting is an annual HMRC compliance requirement for companies that have provided shares, options, or other securities to employees, directors, or related individuals. The rules apply to both UK and non‑UK employers with employees or directors working in the UK.
What needs to be reported to HMRC?
A wide range of share and securities events can be reportable through HMRC’s online ERS system. Common examples include:
- Acquisition of shares or securities by employees or directors.
- Grant or award of share options.
- Exercise, release, assignment, or lapse of options where consideration was received.
- Disposal of restricted securities.
- Lifting or changing restrictions on restricted securities.
- Receipt of a benefit from holding employment-related securities.
- Conversion or variation of convertible securities.
- Discharge of notional loans.
- Artificial enhancement of share or security value.
- Sale of securities for more than market value.
Who must complete ERS returns?
ERS reporting is not limited to formal share schemes. A return may still be required for one‑off or bespoke equity arrangements involving:
- Employees, directors, and non‑executive directors.
- Connected parties such as family members or trusts.
- Former or prospective employees.
- International or cross‑border share awards.
For companies with shares in overseas parent entities, the UK employing company is usually responsible for filing the ERS return.
Do all ERS events trigger a tax liability?
Not every reportable transaction leads to Income Tax or NIC liabilities. However, most ERS events must still be reported to HMRC even where no tax arises. There are very few exemptions under the legislation, and failure to file a return can result in HMRC penalties.
If you have registered a share plan or other ERS scheme with HMRC, it’s important to note that a nil return must be filed for each open scheme — even where there has been no activity during the tax year.
How we can help
Our tax specialists can support you at every stage of the ERS reporting process:
- Confirming what needs to be reported and by whom.
- Preparing and submitting annual ERS returns via HMRC’s online portal.
- Reviewing in‑year transactions for compliance.
- Advising on tax treatment of share awards and options.
We can also assist with related end‑of‑year tax filings, including:
- Employment Tax – PAYE Settlement Agreements, benefits reporting, gender pay gap reporting, and more.
- Expat & Global Mobility – advice for internationally mobile employees.
Get expert ERS reporting support
If you’re unsure about your ERS compliance obligations for 2025/26 or would like help preparing your HMRC ERS return before the 6 July 2026 deadline, please contact our employment tax team.
We’ll help ensure your reporting is complete, compliant, and submitted on time.
